Answer:
a. A large potential market exists, even at a high price.
Explanation:
Penetration pricing is often used to support the launch of a new product, and works best when a product <u>enters a market </u>with relatively little product differentiation and where demand is price elastic –<u> so a lower price than rival products is a competitive weapon.</u>
Therefore the conditions that would argue for using a penetration pricing strategy when introducing this new camera, is when a large <u>potential market exists, even at a high price</u>.<u>so that using a lower price will attract customers to the new product and part of the potential market will be gained.</u>
Answer:
<u>Cash flows from operating activities 271,000</u>
Explanation:
net income 250,000
depreciation +40,000
amortization +9,000
Net Income adjusted 299,000
↑AR -4000
↑Inventories -12,000
↓Prepaid Expenses 2000
↓AP -14,000
Changes in working capital -28,000
Cash flows from operating activities <em>271,000</em>
Answer:
$7,815
Explanation:
As per Perpetual LIFO inventory valuation method the inventory purchased at last will be sold first and the value of ending inventory can be calculated as follows. The inventory sold has been deducted from the purchased inventory in that period first and then has been deducted from the previous period to arrive at the cost of ending inventory;
January: 8 units x $180 = $1,440
February: 20 units x $185 = $3,700
May: 11 units x $190 = $2,090
September: 3 units x $195 = $585
Cost of Ending Inventory of 42 units is $7,815
Answer:
I would buy the APPLE stock
Explanation:
Microsoft stock price = $173
dividends earned = $4, $5 and $5.5
value after 3 years = $190
Apple stock price = $285
Dividends earned = $5.5, $8.5 and $10.5
value after 3 years = $330
Applying the dividend discount model
IVO = present value of dividend + present value of terminal price
for Microsoft
IVO = ( 4/1.1 + (5/(1.1/2)) + ( 5.5/(1.1/3)) + ( 190/(1.1/3))
= $154.65
for Apple
IVO = ( 5.5/1.1 + ( 8.5/( 1.1/2)) + (10.5/(1.1/3)) + ( 330/(1.1/3))
= $267.8
Note: the IVO's are less than the current price of the stocks ( IVO = the intrinsic value of the shares ) but Microsoft shares are overpriced compared to apple
Percentage analysis, ratios, turnovers, and other measures of financial position and operating results are useful analytical measures.
Analytical measures are useful in assessing solvency and profitability of a business. Type of analytical measures used depends on; the size of the firm or business, the capital structure f the business, the type of business activity undertaken. They are useful for evaluating the financial results of a business and the performance of management. <span />