Sensitivity analysis. Where one variable is being tweaked a little to see the NPV, that is always sensitivity analysis.
Umm I'd have to say c or d
Solution :
It is given that Fizzo and Pop Hop sells orange soda. Fizzo advertises about his drinks while Pop Hop does not advertises.
According to the matrix provided we can conclude that :
-- If Fizzo wishes to advertise about his soda drinks, he will earn a profit of 8 million dollar and if Pop Hop do advertises and a 15 million dollar if Pop Hop does not advertises.
-- If Fizzo does not advertise, it will earn profit of about 2 million dollar if Pop Hop advertises and 9 million dollar if Pop Hop does not advertises.
-- When Pop Hop wished to advertise , Fizzo will make a higher profit if he chooses to advertise.
-- When Pop Hop do not advertise, Fizzo will make a higher profit when it chooses to advertise.
And if both the firms acts independently and they start off not advertising, then --- both firms will advertise as both of them will earn highest profits each.
If both the firms collude and both firms start off not advertising, the strategies they will end up is that both the firms will not advertise as the joint profit will be maximized.
The correct answer is B. A debit to common stock distributed.
<em>The entry will be stock dividends debit, paid-in capital which is in excess per common credit stock, stock dividends which are being distributed.</em>
In credit entry it records distribution and declaration of stock dividend which includes the debit to the retained earnings and also a credit to the common stock.
