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grigory [225]
2 years ago
12

How does advertising affect demand? ( with example )

Business
1 answer:
motikmotik2 years ago
7 0

Answer:

Advertising increases aggregate demand

Explanation:

If a store is selling some candy, no-one will know about the candy if they aren't told. If a child sees an advert about that candy and gets interested, he/she would beg their parents to get it for them. If 80 out of a population of 100 children see the advert and half of the them are allowed to buy the candy, the demand for that candy has already risen by nearly 50% of the children in that area.

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XYZ Corp issued $600,000 of 9% , 10-year bonds on June 30,2020, for $562,500. This price provided a yield of 10% on the bonds. I
Rom4ik [11]

Answer:

c. $18, 750

Explanation:

The computation of the amount of interest expense i.e. accrued is shown below:

= Issued amount × yield on the bonds × given months ÷ total number of months in a year

= $562,500 × 10% × 4 months ÷ 12 months

= $18,750

The 4 months is calculated from July 1 to October 31

Hence, the correct option is c. $18,750

5 0
3 years ago
1) The Pet Company has recently discovered a type of rock which, when crushed, is extremely absorbent. It is expected that the f
Olenka [21]

Answer:The Pet Company has recently discovered a type of rock which, when crushed, is extremely absorbent. It is expected that the firm will experience (beginning now) an unusually high growth rate (20%) during the period (3 years) when it has exclusive rights to the property where this rock can be found. However, beginning with the fourth year the firm's competition will have access to the material, and from that time on the firm will assume a normal growth rate of 8% annually. During the rapid growth period, the firm's dividend payout ratio will be relatively low (20%), to conserve funds for reinvestment. However, the decrease in growth will be accompanied by an increase in dividend payout to 50%. Last year's earnings were $2.00 per share (E0) and the firm's cost of equity is 10%. What should be the current price of the common stock?

Explanation:

5 0
3 years ago
Kenny, Inc., is looking at setting up a new manufacturing plant in South Park. The company bought some land six years ago for $7
professor190 [17]

Answer:

$33,540,000

Explanation:

initial investment:

  • opportunity cost of land (resale price of land) = $10,700,000
  • building cost of the facilities = $21,900,000
  • other expenses related to the site (grading) = $940,000
  • total $33,540,000

The purchase cost of the land is considered a sunk costs, since it is not relevant now. What is relevant is the price at which the land could be sold at the moment of starting the project.

7 0
3 years ago
More and more companies have adopted written codes of ethics. Although these codes vary greatly, they can be put into two catego
Anestetic [448]

Answer:

Ethics Code and Features

                                                      Ethics Codes

Features  Integrity- Based Ethics                Codes Based Ethics Codes

Ideal:          Accountability, decision            Education, reduced employee

                  processes, controls                   discretion

Objective: Enable responsible employee  Avoid criminal misconduct

                 conduct

Leader:     Managers                                   Lawyers    

Methods: Conform to outside standards   Conform to outside standards

               and chosen internal standards    

Explanation:

Codes of ethics refer to the governing principles and expectations that regulate the behavior of individuals and organizations in the conduct of their professional responsibilities and business activities.  Two broad categories have been identified for written codes of ethics.  They are compliance-based (rules-based) codes and integrity-based (principles-based) codes.  Rules-based or compliance-based codes emphasize prevention, while principles-based or integrity-based codes provide guidance.

7 0
3 years ago
you've observed the following returns on crash-n-Burn computers stock over the past five years: 17 percent, -4 percent, 20 perce
Anastaziya [24]

Answer:  11%

Explanation:

Arithemetic mean is the average of a set of numeric variables that is calculated by adding them up and dividing by the number of variables there are.

= (0.17 + (-0.04) + 0.2 + 0.12 + 0.10)/5

= 0.55/5

= 0.11

= 11%

6 0
3 years ago
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