Answer:
C) increases first at an increasing rate, then at a decreasing rate.
Explanation:
When marketing expenditure is increased, this will lead naturally to an increase in market demand. This increase in market demand is an increasing one. For example successive increase in demand can be 2, 4, 8, 15.
At a point when diminishing utility sets in the customers are maximising utility and need less of the product. Demand will increase at a decreasing rate. For example 30, 40, 46, 50, 52.
Answer:
$75
Explanation:
As per the data given in the question,
Ke = risk free rate of return + beta×(market portfolio - risk free rate of return)
= 8% + 0.60 × (18% - 8%)
= 8% + 6%
= 14%
= 0.14
Now using the constant-growth DDM model :
Intrinsic value of the stock = Dividend ÷ (Ke - expected growing rate)
= $3 ÷ (0.14-0.10)
= $75
Hence, Intrinsic value of the stock is $75.
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<h3>a) = 25% × $350,000 ÷ 100</h3><h3> = <u>$87,500</u></h3><h3 /><h3 /><h3>b) = $350,000 - $87,500</h3><h3> = <u>$262,500</u></h3>
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Answer:
$294,600
Explanation:
Given that,
September sales = $303,000
October sales = $289,000
Monthly sales are 80% credit and 20% cash.
Of the credit sales, 50% are collected in the month of sale, and 50% are collected in the following month.
Cash collections for the month of October:
= 20% of October sales + 50% of the credit sales in October + 50% of the credit sales in September
= (0.2 × $289,0000 + (0.5 × 0.8 × $289,000) + (0.5 × 0.8 × $303,000)
= $57,800 + $115,600 + $121,200
= $294,600
