Brand equity results in lucrative brand ___licensing___ opportunities, when another company wishes to pay a royalty or fee to use your brand name or trademark.
<h3><u>How does brand equity work?</u></h3>
The power a brand name has over consumers' perceptions and the benefit of having a recognizable and well-recognized brand are measured by brand equity. Businesses build their brand equity by offering customers satisfying experiences that encourage them to stick with them instead of switching to a rival company selling a similar item. The creation of awareness often obtains brand equity through marketing campaigns that appeal to the values of the target consumer, fulfilling promises and qualifications when consumers use the product, and loyalty and retention activities. Brand equity's two main pillars are awareness and experience.
<h3><u /></h3><h3><u>What is licensing a brand?</u></h3>
Renting or leasing an intangible asset is known as licensing. It is the process of drafting and overseeing contracts between the owner of a brand and a business or person who wishes to use the brand in connection with a good for a predetermined amount of time and in a predetermined region. Brand owners can use licensing to apply a trademark or character to goods with distinct characteristics.
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Answer:
credit interest receivable200. debit interest revenue 200
Explanation:
Answer:
Explanation:
A) using 2-year moving average :
Year 6 : (3800 + 3700) = 7500 / 2 = 3750
2) Mean absolute deviation based on the forecast above :
(3000 + 4000) = 7000/2 = 3500
(4000 + 3400) = 7400/2 = 3700
(3400 + 3800) = 7200/2 = 3600
3000
4000
3400 __3500__100
3800__3700__100
3700__3600__100
Mean absolute deviation = (100 + 100 + 100) /3 = 300/3 = 100
C) weight of 0.4 and 0.6
(0.4*3000 + 0.6*4000) = 3600
(0.4*4000 + 0.6*3400) = 3640
(0.4*3400 + 0.6*3800) = 3640
3000
4000
3400 __3600__200
3800__3640__160
3700__3640__60
(200 + 160 + 60) = 420 / 3 = 140
If there is a decrease in the break-even point, the selling price per unit must increase.
<h3>What is Break-Even Point? </h3>
When the total cost and total revenue are equal, it is the break-even point. It means that there is no loss or gain for the small business. The company is at the point where the cost of the product is equal to the revenue for the product. The Break-even price analysis helps in smarter prices, setting revenue targets, taking smarter decisions, limiting financial strain, catching the missing expenses, and most important funding your business. It can be calculated in two ways; by determining the number of units that are to be sold or by the number of sales.
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Answer:
10.45 %
Explanation:
Calculation for What is the cost of debt
Using this formula
Levered cost of equity=Unlevered cost of equity+Equity multiplier(1-Tax rate)(Unlevered cost of equity-Cost of debt)
Let plug in the formula
.156 = .14 + .57(1 −.21)(.14 − Cost of debt )
.156 = .14 + .57(.79)(.14 − Cost of debt )
Cost of debt= .1045 *100
Cost of debt= 10.45%
Note that equity multiplier of 1.57 -1 will give us .57
Therefore the cost of debt will be 10.45%
