Why Do THe chIcKen cross da RoaD????????

You work for a marketing firm that has just landed a contract with Run-of-the-Mills to help them promote three of their products

ZanzabumX [31]

Answer:

See explanation below

Explanation:

Here, when the price of guppy gummies increases by 5%, the quantity of raskels sold decreases by 4% and the quantity of cannes sold increases by 5%.

i.e, % change in price of guppy grummies = 5%

% change in quantity of raskels = -4%

% change in quantity of cannes = 5%

i) Find the Cross price elasticity of demand between guppy grummies and raskels. Use the expression below.

% change in quantity demanded of raskels / % change in price of guppy gummies

= -4% / 5%

= -0.8

Substitute goods have a negative cross price elasticity of demand. Since, the cross price elasticity of demamd here is negative, the goods are substitute.

It is recommended not to advertise raskels with guppy grummies

ii) Find the Cross price elasticity of demand between guppy grummies and cannes. Use the expression below.

% change in quantity demanded of cannes / % change in price of guppy gummies

= 5% / 5%

= 1

Complement goods have a positive cross price elasticity of demand. Since, the cross price elasticity of demamd here is positive, the goods complement each other.

It is recommended to advertise cannes with guppy grummies.

5 0

3 years ago

Consider an offer to supply 5 paintings per year to an art gallery in Rome for the next five years. The contract is exclusive, m

IceJOKER [234]

Answer:

I will accept the offer if the price per painting is $56,312.41 or higher.

Explanation:

We will calculate the present value of the other option which is, selling our painting as a freelancer.

$C \times \frac{1-(1+r)^{-time} }{rate} = PV\\$

C 315,000.00

time 5

rate 0.2

$315000 \times \frac{1-(1+0.2)^{-5} }{0.2} = PV\\$

PV $942,042.8241

Now, we subtract the signing bonus of 100,000

942,042.83 - 100,000 = 842,042.83

And solve for the annual proceeds from the painting we need to equalize the opportunity cost:

$PV \div \frac{1-(1+r)^{-time} }{rate} = C\\$

PV 842,042.83

time 5

rate 0.2

$842042.83 \div \frac{1-(1+0.2)^{-5} }{0.2} = C\\$

C $ 281,562.03

Now, we divide by the 5 painting per year:

$281,562.03 per year / 5 painting per year = $56,312.41

3 0

3 years ago

Desmond, a US citizen, opens and operates a jewelry store in Lisbon, Portugal. This counts as: investment for Desmond and US for

Katen [24]

Answer: Investment for Desmond and US foreign direct investment.

Explanation:

This is an investment for Desmond because he owns the store. He is therefore the equity shareholder and investor into the store.

It is also a U.S. Foreign Direct Investment (FDI) because FDI is what describes a situation where an entity from a country goes to another country and sets up a business there that they will own and operate. Desmond being a U.S. citizen is operating a store in another country so this is U.S. FDI.

3 0

3 years ago

1. Keira’s Kitchen Company presented the following data: Net Income $2,500,000 Preferred Stock, 50,000 shares outstanding, $100

GarryVolchara [31]

Answer:

Earnings Per Share (EPS) = $1.18

Explanation:

We know,

Earnings Per Share (EPS) = $\frac{Net Income - Preferred Dividend}{No. of shares outstanding}$

Here,

Net Income = $2,500,000

Preferred Dividend = Total preferred stock in dollar x cost of preferred stock

Preferred Dividend = $5,000,000 x 8% = $400,000

No. of shares outstanding table is shown below (Weighted):

Shares outstanding + Additional shares - Treasury stock =

[750,000 x stock split] + [300,000 x (8/12) x stock split] - [150,000 x (5/12) x stock split]

= (750,000 x 2) + (200,000 x 2) - (62,500 x 2)

= 1,500,000 + 400,000 - 125,000

= 1,775,000

Now, EPS = $\frac{2,500,000 - 400,000}{1,775,000}$

EPS = 1.18 (rounded to 2 decimal places)

<em>Note:</em> 1. As, there is a stock split of 2-for-1, that's why we multiply the stock by 2.

2. Since additional shares are issued on 1st May, therefore, the weight from May to December is for 8 months. Repurchased or Treasury stock should be removed from number of shares.

7 0

3 years ago

A giant telecommunications company that was previously owned by the government of Sunzabia, a European country, is sold to an in

Ugo [173]

Answer: Privatization.

Explanation:

The giant telecommunication company has experienced privatization as it's ownership has switched from public to private. Privatization occurs when a government owned business establishment is traded to a private individual/organization, therefore the owners of the business are private individuals.

3 0

3 years ago