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castortr0y [4]
3 years ago
7

The cost of equity is: Group of answer choices equal to the amount of asset turnover the weighted average cost of capital the in

terest associated with debt the rate of return required by investors to incentivize them to invest in a company
Business
1 answer:
san4es73 [151]3 years ago
6 0

Answer:

the rate of return required by investors to incentivize them to invest in a company

Explanation:

In finance, the cost of equity is the Cost of Equity is the rate of return which an organization pays those that invested in equity. The organization uses cost of equity to check how attractive investments are.

It can be calculated by using the CAPM which is Capital Asset Pricing Model

You might be interested in
marquis suites shows movies in a living room atmosphere with comfortable chair and food and beverage service it deliverately cha
CaHeK987 [17]

The different pricing strategies are matched with the best scenarios below.

<h3>What are pricing strategies?</h3>
  • When selling a product or service, a company can employ a number of pricing tactics.
  • Senior executives must first assess the company's price position, pricing segment, pricing capacity, and competition pricing reaction strategy before determining the most successful pricing strategy for the company.

The scenario to the strategy it best illustrates is shown below:

1. When the Mays family went to Europe, they used a travel agent who worked out a trip that included airfare, hotels, and some tours all for one price.

Most Suitable Pricing Strategy: Bundling

2. Marquis Suites shows movies in a "living room" atmosphere with comfortable chairs and food and beverage service. It deliberately charges more than other theaters for this experience.

Most Suitable Pricing Strategy: Competition-based pricing

3. Chad is a do-it-yourself guy. He shops at Home Depot because, although they don’t usually run sales, he knows the store will offer the lowest price around on the tools he needs.

Most Suitable Pricing Strategy: Everyday low pricing (EDLP)

4. A major national retailer charges "full retail" for most of the lines it carries but runs "special sales" during which the company lowers its price.

Most Suitable Pricing Strategy: High-low pricing

5. When Walmart enters a new geographic area, the company undersells its more well-established competitors and eventually raises its prices once it has a loyal customer base.

Most Suitable Pricing Strategy: Penetration pricing

6. When Aaron was looking for mortgage lenders, he noticed that one major lender lowered their rates, and several others did the same within a few days.

Most Suitable Pricing Strategy: Price leadership

7. Larry Dietzel, a real estate agent, advised his clients to price their home at $199,900 when they listed with his agency.

Most Suitable Pricing Strategy: Psychological pricing

8. Overture Audio home theater systems can run as high as $100,000 but there are only a few companies offering the systems.

Most Suitable Pricing Strategy: Skimming price

9. Toyota’s approach to entering the U.S. market was to set a certain net profit margin, then determine what price the company had to offer to get Americans to buy its cars instead of domestic cars.

Most Suitable Pricing Strategy: Target costing

Therefore, the different pricing strategies are matched with the best scenarios.

Know more about High-low pricing here:

brainly.com/question/13961829

#SPJ4

Complete question:

Decisions about pricing strategies should be set in conjunction with other marketing decisions about product design, packaging, branding, distribution, and promotion. All these marketing decisions are interrelated. Prices must be related to the cost of producing the product and prices are usually set somewhere above cost. But price and cost aren't always related. There are three major approaches to pricing strategy: cost-based, demand-based (target costing), and competition-based. Other pricing strategies include skimming price strategy, penetration strategy, everyday low pricing (EDLP), high-low pricing strategy, bundling, psychological pricing, and demand-oriented pricing. Match each scenario to the strategy it best illustrates.

1. When the Mays family went to Europe, they used a travel agent who worked out a trip that included airfare, hotels, and some tours all for one price.

2. Marquis Suites shows movies in a "living room" atmosphere with comfortable chairs and food and beverage service. It deliberately charges more than other theaters for this experience.

3. Chad is a do-it-yourself guy. He shops at Home Depot because, although they don’t usually run sales, he knows the store will offer the lowest price around on the tools he needs.

4. A major national retailer charges "full retail" for most of the lines it carries but runs "special sales" during which the company lowers its price.

5. When Walmart enters a new geographic area, the company undersells its more well-established competitors and eventually raises its prices once it has a loyal customer base.

6. When Aaron was looking for mortgage lenders, he noticed that one major lender lowered their rates, and several others did the same within a few days.

7. Larry Dietzel, a real estate agent, advised his clients to price their home at $199,900 when they listed with his agency.

8. Overture Audio home theater systems can run as high as $100,000 but there are only a few companies offering the systems.

9. Toyota’s approach to entering the U.S. market was to set a certain net profit margin, then determine what price the company had to offer to get Americans to buy its cars instead of domestic cars.

A. Psychological pricing

B. Bundling

C. Target costing

D. Penetration pricing

E. High-low pricing

F. Competition-based pricing

G. Price leadership

H. Skimming price

I. Everyday low pricing (EDLP)

7 0
2 years ago
U.S. car dealers sell both used cars and new cars each year. However, only the sales of the new cars count toward GDP. Why does
Airida [17]

Answer:

It will be double counting

Explanation:

GDP or gross domestic product is the measure of the total value of productions in the economy per period. In calculating the GDP, economists consider only finished products produced within the borders of a country in a financial year.

Second-hand cars cannot be counted in the calculation of GDP because it will result in double counting. GDP is calculated using the income, expenditure, or production approach.  The second-hand cars were accounted for when they were purchased or sold for the first time. If the production method was used, the vehicles were accounted for in the year they were manufactured.

3 0
3 years ago
Axle Corporation acquires​ 100% of Drexel​ Corporation's stock from​ Drexel's shareholders for​ $500,000 cash. Drexel Corporatio
kolbaska11 [484]

Answer:

$500,000 Axle​ Corporation's basis in the Drexel Corporation stock.

5 0
3 years ago
Read 2 more answers
Bracey Company manufactures and sells one product. The following information pertains to the
kumpel [21]

Answer:

<h2>Bracey Company</h2>

1. Assuming that Bracey Company uses super-variable costing:

a. Computation of the unit product cost for the year:

Unit product cost

= unit cost of direct materials = $19

b. Bracey Company Income Statement for the year ended December 31:

Sales Revenue                                                             $990,000

Cost of goods sold                                                         342,000

Contribution                                                                 $648,000

Period Costs:

Direct labor                                                 $250,000

Fixed manufacturing overhead                   300,000

Fixed selling and administrative expenses  90,000 $640,000

Net Income                                                                       $8,000

2. Assuming Bracey Company uses a variable costing system that assigns $12,50 of direct labor cost to each unit produced:

a. Computation of the unit product cost for the year:

Unit product cost

= Direct materials $19

  Direct labor        $12.50

Total                      $31.50

b. Bracey Company Income Statement for the year ended December 31:

Sales Revenue                                                             $990,000

Cost of goods sold                                                         567,000

Contribution                                                                 $423,000

Period Costs:

Fixed manufacturing overhead                   300,000

Fixed selling and administrative expenses  90,000 $390,000

Net Income                                                                     $33,000

3. Assuming Bracey Company uses an absorption costing system that assigns $12.50 of direct labor  cost and $15.00 of fixed manufacturing overhead cost to each unit produced:

a. Computation of the unit product cost for the year:

Unit product cost:

Direct materials $19.00

Direct labor        $12.50

Overhead          $15.00

Total                  $46.50

b. Bracey Company Income Statement for the year ended December 31:

Sales Revenue                                                             $990,000

Cost of goods sold                                                         837,000

Contribution                                                                  $153,000

Period Costs:

Fixed selling and administrative expenses                    90,000

Net Income                                                                     $63,000

4. Reconciliation between super-variable costing and variable costing net operating incomes:

a.

Net operating income as per super-variable costing          $8,000

Add Ending Inventory, direct labor cost (2,000 x $12.50)  25,000

Net operating income as per variable costing                  $33,000

b.

Net operating income as per super-variable costing            $8,000

Add Ending Inventory, labor + overhead (2,000 x $27.50)  55,000

Net operating income as per absorption costing               $63,000

Explanation:

a) Data and Calculations:

Variable cost per unit:

Direct materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  $19

Fixed costs per year:

Direct labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . $250,000

Fixed manufacturing overhead . . . . . . . . . .  $300,000

Fixed selling and administrative expenses .  $90,000

Total units produced . . . . . . . . . . . . . . . . . . . . . . 20,000

Total units sold . . . . . . . . . . . . . . . . . . . . . . . . . . .  18,000

Units in Ending Inventory  . . . . . . . . . . . . . . . . . .  2,000

Selling price per unit . . . . . . . . . . . . . . . . . . . . . . . . . $55

b) Bracey Company's super-variable costing method bases the product cost only on the cost of totally variable costs (direct materials).  This unit product cost is then applied to the cost of goods sold and the inventory.  Other variable and even manufacturing overhead costs are not charged to the ending inventory and the cost of goods sold.  They are all regarded as period costs and charged  against income during the period.  The profit produced in the early periods will be substantially less than subsequent years profits.

Bracey variable costing technique charges all variable factory costs to determine the product cost.  On the other hand, the absorption costing method charges all factory costs, whether variable or fixed to determine the product cost.

7 0
2 years ago
What is the major reason(s) for consumer default on loans?
denis-greek [22]
<span>Major reasons for consumer default on loans can include: missed payments, either known or unknown. This has a negative effect on the consumer's credit score and can limit their chances to take out new lines of credit. A continuation of missed payments results in default. High interest loans are also a major reason for default.</span>
6 0
3 years ago
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