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Norma-Jean [14]
4 years ago
5

The concept of ________ suggests that when a company has built significant value into its product offerings, trying to increase

the value of the products by even a small amount requires a significant financial investment.
Business
1 answer:
Vinvika [58]4 years ago
5 0

Answer:

diminishing returns

Explanation:

I'll provide you with a situation as an example.

Let's say that you are running a successful ice cream company. Typically, ice creams are made with dairy. This made a certain percentage of population couldn't consume it since they are lactose intolerant. (Basically eating dairy will give them diarrhea ).

There are not many people who have this condition. Let's say that you want to increase the value of your product and use the materials that makes your product become consumable to this specific population while maintaining the original taste.

This would resulted in a small amount  increase in customers base , but the investment that you need to make in order to make it happen will be substantial. You basically have to invest in researches to find the perfect ingredients, invest in additional marketing expense to educate the customers on the new product, change your current production flow, etc.

You might be interested in
Explain how a person who pursued a career in accounting could succeed as an entrepreneur.
rosijanka [135]

Answer:

own their own accounting business

4 0
3 years ago
If the money supply is growing at a rate of 1010 percent per​ year, real GDP​ (real output) is growing at a rate of 11 percent p
Nat2105 [25]

Answer:

The correct answer is 999%

Explanation:

We will use the Quantity Theory of Money to solve this simple question.

The Quantity Theory of Money equation is equal to:

ΔM X V = ΔP X ΔY

Where:

  • ΔM = Change in Money supply
  • V = Velocity, which does not change, because it is assumed to be constant
  • ΔP = Change in prices, or inflation
  • ΔY = Change in output or GDP

According to this theory, inflation is equal to:

ΔP = ΔM + V - ΔY

Replacing...

ΔP = 1010% + 0 - 11%

ΔP = 999%

So the price change, or inflation rate is 999%.

8 0
3 years ago
Universal Exports is expected to pay the following dividends over the next four years: $8, $4, $2, and $2. Afterwards the compan
omeli [17]

Answer:

$23.25

Explanation:

the maximum that you would be willing to pay for a stock of Universal today can be determined using the multistage dividend discount model

The first step is to find the present value of the dividends over the next four years :

Present value is the sum of discounted cash flows

Present value can be calculated using a financial calculator

Cash flow in year 1 = $8

Cash flow in year 2 = $4

Cash flow in year 3 = $2

Cash flow in year 4 = $2

I = 15%

Present value = $12.44

Next we would find the present value of the perpetual growth of dividend

($2 x 1.04 ) / 0.15 - 0.04 = 18.91

the present value of this amount = $18.91 / = $10.81

Maximum value = $12.44 + $10.81 = $23.25

To find the PV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

3 0
3 years ago
During a selection stage interview, you should
gulaghasi [49]

Answer:

I'd have to go with B for this one

Explanation:

Reason for that would be because of the fact that you'd want your employer to see the skills and qualities for the job so that they know that they of course made the right decision based off your resume and such

8 0
3 years ago
Liberty, inc. has 2,500 shares of 4%, $50 par value, cumulative preferred stock and 50,000 shares of $1 par value common stock o
BabaBlast [244]

Dividend to be paid to Preference shareholders in 2014= No of Preference shares*par value per share*Percentage of Shares

=2500*50*4%

=$5000

Dividends declared duing 2014=$3000, Thus Preference share holders need to be paid $2000 , in 2015, as preference shares are cumulative in nature.

Dividend to pe paid to Preference shareholders in 2015= $5000+$2000

=$7000.

Dividend to be paid to common share holders= $18000-$7000

=$11000

Thus B will be the answer.

8 0
4 years ago
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