Answer:
The correct word for the blank space is: competitive.
Explanation:
Pricing strategies are methods companies use at the moment of setting the prices of their products. The most common pricing strategies are:
- Cost-plus pricing.<em> Involves recognizing the production costs and adding a percentage of those costs which represents the profit of the firm.
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- <u>Competitive pricing</u>.<em> Implies establishing the price of a product similar to what competitors in the market have set.
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- Value-based pricing.<em> It requires setting the price of goods and services based on what consumers think the price should be.
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- Price skimming.<em> Involves pricing a product high at first and changing the price according to market fluctuations.
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- Penetration pricing.<em> Implies setting the price of a product low to wipe out competitors and raising it after they completely disappeared.</em>
Answer:
b. the equity method.
Explanation:
The equity method is used when the investor company will own approximately 20% to 50% of the common stock of the investee company. This method is used because the investor company will have significant influence over the actions taken by the investee company. The investee company will generally be considered an affiliate company, but not a subsidiary.
Answer: Net Asset Value = 1950
Explanation:
Assets = $225 million
Liabilities = $30 million
Shares outstanding = 10 million
We can compute the Net Asset Value, using the following formula:
<em>
</em>
<em>
</em>
<em>NAV per share = 19.5</em>
<em>Therefore, the NAV of 100 share is 1950</em>
Answer:
decrease total assets and stockholders' equity
Explanation:
At the time of declaration a liability increases, against dividend expense.
At the time of payment that liability is settled by paying in cash.
Thus net effect of both transactions is decrease in cash and increase in expenses.
If we carefully analyse the options, then
we get that there is decrease in assets in the form of cash and decrease in equity as expenses decrease retained earnings which are owner's equity.
Therefore, correct option is
decrease total assets and stockholders' equity.
