Answer:
Captive pricing
Explanation:
Captive pricing is the pricing of products that have both a "core product" and a number of "accessory products.". In the question, when she purchase a dispenser(core product) she gets two liquid soap(accessory product) for free, so the pricing strategy to engage is the captive pricing.
Answer:
Taxes can be used to increase the price of producing or selling something which discourages firms from engaging in that activity.
If the government wants to encourage a particular activity, they could subsidize firms who engage in it.
For example there are extra taxes on cigarettes because the government sees them as harmful, these extra taxes increase the price of ciggarettes.
Answer:
a. Collusion
Explanation:
Collusion can be defined as an illegal, secret and uncompetitive agreement between rivalry parties in attempt to destroy the market equilibrium through actions such as illegal-pricing.
Hence, when two or more people get together for the purpose of circumventing prescribed controls, it is called collusion.
Internal controls can be defined as the policies, set of rules, and procedures implemented or put in place by an organization to protect its assets, boost efficiency, enhance financial accountability, enforce adherence to company policies and prevent fraudulent behaviors among the employees.
The main purpose of internal controls is to guarantee that loss is eliminated as there's an accurate and reliable accounting system.
An internal control involves the timely use of both internal and external sources of auditing or financial reporting and as such enhance the maintenance of accurate and proper financial records which would also improve their operational efficiency.
Hence, internal controls if properly executed helps to increase operational efficiency, protect and safeguard assets, provides accurate financial information, prevents fraudulent or unlawful behaviors, timeliness of financial records and reporting
Answer:
1. $5.3
2. 17.95
Explanation:
1. Earning per share today = $5.1
Earning growth in one year = 4%
So, the EPS one-year ahead:
= Earning per share today × (1 + Earning growth in one year)
= 5.1 × 1.04
= $5.3
2
. Market price one-year ahead:
= Current price × (1 + expected return on Parador stock)
= 78 × 1.22
= $95.16.
P/E Ratio = Market price per share ÷ Earning per share
P/E Ratio = 95.16 ÷ 5.3
= 17.95
