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lbvjy [14]
3 years ago
14

Eula, a company that manufactures soda, offers its latest products at very low prices. Eula's strategy is based on the assumptio

n that more customers will be willing to buy its products if they are offered at lower prices. Eula has adopted this strategy to attract a larger customer base and increase its sales volume even though it will only gain a small profit on each individual sale. In this scenario, Eula has implemented the _________ strategy.A. high/low pricing
B. skimming pricing
C. penetration pricing
D. loss-leader pricing
Business
1 answer:
Elena L [17]3 years ago
6 0

Answer:

C. penetration pricing

Explanation:

Penetration pricing is a marketing strategy where price is set to a low amount in order to get a large portion of the market within a short time.

It is based on the logic that consumers will prefer to buy goods at lower prices.

Penetration pricing is used to get market share and profits are gained at scale. That is small profits on each sale, and when there is large sales turnover profit will be high.

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How does demand-pull inflation differ from cost-push inflation?
kicyunya [14]
<span>Demand-pull inflation is asserted to arise when aggregate demand in an economy outpaces aggregate supply. It involves inflation rising as real gross domestic product rises and unemployment falls, as the economy moves along the Phillips curve. This is commonly described as "too much money chasing too few goods".</span>
4 0
3 years ago
Read 2 more answers
After 1989, Donna purchased series EE savings bonds for $2,500 at the age of 25. This year she redeemed the bonds for $5,000 and
Orlov [11]

Answer:

$1,000

Explanation:

Donna purchased series of savings bond for $2,500 at the age of 25

This year Donna redeemed the bond of $5,000

She paid $3,000 as expenses for her daughter education

The first step is the calculate the interest income

= $3,000/$5,000 × $2,500

= 0.6 × $2500

= $1,500

Therefore the interest that will be required by Donna to include in her gross income this year can be calculated as follows

= $2,500-$1,500

= $1,000

Hence Donna is required to include an interest of $1,000 in her gross income this year

3 0
2 years ago
Which is typical relationship between time and interest rate
allsm [11]
One typical relationship between time and interest rate would be simple interest rate. It is the most simplest interest rate however it is not used nowadays since it  does not account for all cost along the value of the money. For this relationship, interest rate is directly proportional with time.
5 0
3 years ago
What is an amount of money multiplied by the interest rate and the amount of time that the money will be earning interest?
Slav-nsk [51]
I just took the test online, It's Future Value.
3 0
3 years ago
Read 2 more answers
Stocks X and Y have the following data. The market risk premium is 5.0% and the risk-free rate is 4.6%. Assuming the stock marke
Nat2105 [25]

Answer:

b. Stock X has the higher dividend yield.

Explanation:

We solve for the cost of equity of each stock using CAMP then, with the gordon model we determinate the price ofthe share expressed in Dividends.

<em><u>Stock X</u></em>

Ke= r_f + \beta (r_m-r_f)

risk free = 0.046

market rate = 0.09

premium market = (market rate - risk free) 0.05

beta(non diversifiable risk) = 1.5

Ke= 0.046 + 1.5 (0.05)

<em>Ke 0.12100</em>

<u><em>Dividend grow model:</em></u>

D/(r-g) = Value of the share

0.121 - 0.06 = 0.061

D/0.061 =<em> 16.39D</em>

<em><u>Stock Y</u></em>

Ke= r_f + \beta (r_m-r_f)

risk free = 0.046

market rate = 0.09

premium market = (market rate - risk free) 0.05

beta(non diversifiable risk) = 0.5

Ke= 0.046 + 0.5 (0.05)

<em>Ke 0.07100</em>

<em><u>Dividend grow model:</u></em>

D/(r-g) = Value of the share

0.071 - 0.06 = 0.011

D / 0.011 = <em>90.90D</em>

The stock X is value 16.39 times his dividends

while stock Y is valued 90.90 times his dividends

Thus, being Dividend Yield the Dividend per share over the price of the share it will be higher on stock X than stock Y

7 0
3 years ago
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