Answer:Highlight celebrities who use Sumac e-readers.
Explanation:
According to the question, due to tough competition in market regarding the e-reading product , Sumac industries wants that they can have superior position in e-reader market than other e-reader business organizations.Thus,they want a secure position for their company.
A good strategy for maintaining their position can be done through putting spot-light on the celebrity users of Sumac e-reader.This will be highlighted among celebrity fans or followers and general customers. It will promote or inspire people to purchase Sumac e-reader more as celebrities are using their product.
Answer:
the same quantity of output as a perfectly competitive market. If anything is wrong let me know since I'm new to answering questions
Explanation:
Answer: $6581.58
Explanation:
Based on the information given in the question, the mortgage payment per month will be calculated thus:
= [P x I x (1+I)^N]/[(1+I)^N-1]
where,
P = Principal = $750000
I = Interest rate per month = 10%/12 = 0.10/12 = 0.008333
N = number of installments = 30 × 12 = 360
Then, the equated monthly installment will be:
= [750000 × 0.008333 × 1.008333^360] / [1.008333^360-1]
= [750000 × 0.008333 × 19.8350386989] / [19.8350386989 - 1]
= 123964/18.835
= 6581.58
Under this loan proposal, your mortgage payment will be $6581.58 per month.
Answer:
b. it is appropriate to borrow if the return on the assets is greater than the cost of the financing.
Explanation:
A leverage can be defined as a process which typically involves the use of fixed-charged assets or items in a business with the intention of multiplying potential financial gains and returns.
In Financial accounting, the concept of leverage is that it is appropriate for a business firm to borrow an amount of money (debt), if the return on the assets (capital gain or income) is greater than the cost of the financing (debt or borrowed money).
Basically, financial leverage which is also known as trading on equity, is the utilization of debt (borrowed money) to acquire or purchase new assets with the intent and expectation that the income generated from these assets would exceed the cost incurred from borrowing. Thus, a business that engages in financial leveraging assumes that it would generate a higher income or capital gain from the amount of debt (borrowed money) used in its capital structure.
Answer:
b. 8.82%
Explanation:
WACC = Cost of equity x Weight of equity + Cost of Preferred Stock x Weight of Preferred Stock + Cost of Debt x Weight of Debt
Cost of Preferred Stock calculation :
Cost of Preferred Stock = Expected dividend / Market Price x 100
= $6 / $50 x 100
= 12 %
After tax cost of debt calculation :
After tax cost of debt = Interest x (1 - tax rate)
= 8 % x (1 - 0.35)
= 5.20 %
therefore,
WACC = 15% x 30 % + 12 % x 10 %+ 5.20 % x 60 %
= 8.82 %
