The market expands, the level of competition rises, the number of clients grows, and sales increase during the growth stage. Price undercutting in the growth stage is typically uncommon because businesses in this stage can boost revenue by luring in new clients.
A product's life cycle consists of four stages, as previously mentioned: introduction, growth, maturity, and decline. However, a product must first undergo design, research, and development. A product can be created, advertised, and released onto the market once it is determined to be practical and potentially profitable.
Consumers have accepted the product on the market and are starting to genuinely buy in during the growth stage. That indicates that both demand and profits are rising, preferably consistently and quickly. The market for the product is expanding during the expansion stage, and competition is starting to emerge.
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Answer:
Annual Financial advantage $ 550
Explanation:
<u>Computation of income/loss on special order</u>
Unit product costs
Normal product costs $ 19.20
Incremental variable costs $ 1.30 per unit <u>$ 1.30</u>
Total product costs $ 20.50
Revenues per unit <u>$ 26.00</u>
Profit per unit $ 5.50
Sales Units 2,100 units
Total incremental profit on order $ 11,550
Less; cost of moulds <u>$ 11,000</u>
Incremental profit on S 47 order $ 550
The question is incomplete. Here is the complete question.
Caribou Gold Mining Corporation is expected to pay a dividend of $6 in the upcoming year. Dividends are expected to decline at the rate of 3% per year. The risk-free rate of return is 5%, and the expected return on the market portfolio is 13%. The stock of Caribou Gold Mining Corporation has a beta of .5. Using the constant-growth DDM, the intrinsic value of the stock is _________. A. $150 B. $50 C. $100 D. $200
Answer:
$50
Explanation:
Caribou Gold mining corporation is expected to make a dividend payment of $6 next year
Dividend are expected to decline at a rate of 3%
= 3/100
= 0.03
The risk free rate of return is 5%
= 5/100
= 0.05
The expected return on the market portfolio is 13%
= 13/100
= 0.13
The beta is 0.5
The first step is to calculate the expected rate of return
= 0.05+0.5(0.13-0.05)
= 0.05+0.5(0.08)
= 0.05+0.04
= 0.09
Therefore, the intrinsic value of the stock using the constant growth DDM model can be calculated as follows
Vo= 6/(0.09+0.03)
Vo= 6/0.12
Vo= $50
Hence the intrinsic value of the stock is $50
The marginal cost of the 3rd round of miniature golf would be $0 because you pay one fee of $12 for unlimited rounds.
The marginal cost of the 3rd go-kart session would be $8 because each round cost is $8.