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german
2 years ago
6

To attract customers into a store, Safeway advertises its milk at less than cost, hoping that customers will purchase other groc

eries as well. This pricing strategy is called a. comparison discounting. b. special-event pricing. c. differential pricing. d. price or loss leader pricing. e. price lining.
Business
1 answer:
Ahat [919]2 years ago
5 0

Answer:

D. Price or Loss leader pricing

Explanation:

A loss leader (also leader) is a pricing strategy where a product is sold at a price below its market cost to stimulate other sales of more profitable goods or services. ... The loss leader is offered at a price below its minimum profit margin—not necessarily below cost.

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What should be the current price of a share of stock if a $5 dividend was just paid, the stock has a required return of 20%, and
Gala2k [10]

Answer:

Current Price of the Share Stock is $ 37.86 (D)

Explanation:

Using dividend valuation method with a constant growth rate assumption, share price is calculated as : Po =D1/(Ke-g).

Where;  Po ⇒Market Value excluding any dividend currently payable

            D1= Do(1+g)⇒Expected dividend in one year's time

            Ke =Required rate of return by shareholders

             g= Dividend growth rate

<u>Calculation</u>

D1 = 5(1+0.06)= $5.3

Hence, Po= 5.3/(0.20-0.06)

            Po=$37.86

The share price is expected to reflect the future expected stream of income i.e  dividends and capital gains ,discounted at an appropriate cost of capital.

Some of the assumptions of dividend valuation method include but not limited to the following:

- it assumed that investors act rationality and in the same way ;

-the dividend either show growth or no growth;

-the discount rate used exceeds the dividend growth rate.

5 0
3 years ago
Choose the correct answers :
Y_Kistochka [10]

Answer:

b. product A and B are subtitutes

a. the quantity of fast food consumed decreases as income increases

Explanation:

Cross price elasticity of demand measures the responsiveness of quantity demanded of good A to changes in price of good B.

Cross price elasticity = percentage change in quantity demanded of good A / percentage change in price of good B.

The cross price elasticity of substitute goods are always positive because if the price of good B increases, the Quanitity demanded of good A rises.

Substitute goods are goods that can be used in place of another good.

Complement goods are goods that are used together. E.g. car and gas

Inferior goods are goods whose demand increases when income falls and whose demand falls when income rises.

I hope my answer helps you

6 0
3 years ago
Suppose that a new labor law increases the minimum required number of paid vacation days for all full-time employees; illustrate
Llana [10]

Answer:

The AS curve shifts to left.

Explanation:

If the minimum number of paid vacation days are increased, then it will increase the benefits of labor. Labor will be interested to join the work and the supply of labor will increase, reducing the cost of production and in turn cost of goods in which the labor was used.

Such a reduction in price, in turn, will reduce the aggregate supply, and so the aggregate curve will shift to left. The diagram illustrating the situation is attached.

The AS curve shifts to left.

8 0
3 years ago
Assume that capital is limited to 9 machine​ hours, but labor is unlimited in supply. In which company is the marginal product o
mestny [16]

Answer:

D. Disk has the greater marginal product of labor when labor is greater than 1.

Explanation:

Marginal product is the increase in output per unit of additional input. The Floppy has lesser marginal utility than Disk. When marginal product of labor is greater than than the product marginal utility increases which means more output is created.

8 0
2 years ago
How could taking time to develop plans and having financial well-being help you be more productive?.
ElenaW [278]

List of ways financial planning can help :

  • Businesses can incorporate financial wellness into their employee benefits programs for a variety of reasons, including improved productivity, higher employee retention, and better job satisfaction.
  • Even for businesses, lowering financial stress can aid in lowering healthcare expenses.
  • Financial preparation lessens stress
  • Making financial plans aids in maintaining focus.
  • Positively impacts both physical and mental health.
<h3>What is Financial planning?</h3>
  • The act of thoroughly analyzing your financial condition and creating a customized financial plan to achieve your objectives is known as financial planning.
  • As a result, financial planning frequently covers a wide range of financial topics, including insurance, investing, taxes, savings, retirement, and more.

Learn more about financial planing here:

brainly.com/question/13929209

#SPJ4

6 0
11 months ago
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