Answer:
B. Advertising is about buying the attention of an audience of potential consumers. I hope this helps. :)
Explanation:
Answer:
C) says there is a one for one adjustment of the nominal interest rate to the inflation rate.
Explanation:
The Fisher Effect is an economic theory that explains the relationship between interest rates and inflation rates. It states that real interest rate equals nominal interest rate minus inflation rate.
If inflation increases, then the real interest rate will decrease unless the nominal interest rate increases proportionally to the inflation rate.
Answer:
34
Explanation:
Annual demand D = 4,200 bags
Ordering cost S = $10.70
Holding cost H = $76
Economic order quantity =
Economic order quantity =
Economic order quantity =
Economic order quantity =
Economic order quantity = 34.389388
Economic order quantity = 34
Answer:
The margin of safety is the excess of Expected sales over break-even sales
Explanation:
Margin of Safety is the amount by which Sales in Dollars or units may fall before a firm makes a loss.
A firm neither makes a loss or a profit at the Break Even Point.
Therefore the Margin of Safety would be the Excess of Expected Sales over the Break Even Sales.
Answer:
e. $89.83
Explanation:
Calculation to determine the current share price
First step is to calculate the Value after year 4 using this formula
Value after year 4=(D4*Growth rate)/(Required rate-Growth rate)
Let plug in the formula
Value after year 4=(4*1.05)/(0.1-0.05)
Value after year 4=$84
Now let calculate the current share price using this formula
Current share price=Future dividend and value*Present value of discounting factor(rate%,time period)
Let plug in the formula
Current share price=16/1.1+12/1.1^2+7/1.1^3+4/1.1^4+84/1.1^4
Current share price=$89.83(Approximately)
Therefore the current share price is $89.83