The incremental income to process further for Maxim company equals to $30,000.
<h3>What is an Incremental income?</h3>
This means the profit that a business gains from an increase in sales.
It is gotten when there is an additional revenue generated by a certain product.
The Net income to be generated from Green health equals:
= Revenue - Cost
= $90,000 - $28,000
= $62,000
The Net income to be generated from Premium Green equals:
= Revenue - Extra cost
= $98,000 - $6,000
=$92,000
<h3>What is Incremental income to Process further?</h3>
= $92,000 - $62,000
= $30,000
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Answer:
P₀ = $106.96
Explanation:
the current dividend paid by IBM was $6.30 per stock
Div₀ = $6.30
Div₁ = $6.615
Div₂ = $6.94575
Div₃ = $7.2930375
Div₄ = $7.657689375
Div₅ = $8.040573844
Div₆ = $8.321993928
we must first determine the terminal value at year 5 = Div₆ / (rrr - g) = $8.321993928 / (10% - 3.5%) = $128.0306758
now we must discount the future values using the 10% discount rate:
P₀ = $6.615/1.1 + $6.94575/1.1² + $7.2930375/1.1³ + $7.657689375/1.1⁴ + $8.040573844/1.1⁵ + $128.0306758/1.1⁵ = $6.013 + $5.740 + $5.479 + $5.230 + $4.993 + $79.50 = $106.96
Answer:
4. The demand for gasoline-powered automobiles would increase and the equilibrium price of gasoline-powered automobiles would increase.
Explanation:
Substitute goods are goods that can be used in place of each other.
If the price of electric automobiles rises, the automobile becomes more expensive for consumers. Consumers would reduce the quantity demanded of the electric automobile and shift its demand to gas powered automobiles.
As a result, the demand for gas automobiles increases and the equilibrium price would increase too.
I hope my answer helps you
In this example, Wrigley used the Penetration pricing.
Penetration pricing is one of marketing strategy which aims to attract potential customers by offering lower price as its initial offering.
This pricing strategy helps a new product or service to penetrate the market and attract customers because of the low price offered.
In the question, the introductory price for chewing gum, mint mojito were set low and aims to attract new customers to the product.
In conclusion, Wrigley used the Penetration pricing to attract new customers.
Read more about this here
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Explanation:
It all depends on the market conventions and the bond documentation.
1 In most countries, traditionally fixed coupon bonds don’t have their coupons day counted. So if the frequency is twice a year, and the annual coupon rate is 5.5%, then each semi-annual coupon is exactly 5.5/2=2.75%. However a lot of other instruments, e.g. fixed swap legs, loans, and bonds that are really “loan participation notes”, etc. usually have their fixed coupons day counted. So each coupon amount will vary a little depending on the number of days in the accrual period, weekends and holidays.
