Answer:
Letter d is correct. <u><em>Increase in the demand for cranberry juice.</em></u>
Explanation:
<u>Substitute products</u> are those that can be replaced by other products that are not similar but and which meet the same needs as customers may have greater benefits or a lower price offer.
This concept is presented by <em>Porter</em> as a model of competition analysis that influences business strategy, called <em>Porter's 5 forces</em> that, in addition to other variables, analyzed substitute goods and how they contribute to market division.
Therefore, in this question, when the price of orange juice increases, the demand for cranberry juice increases as it is a substitute product
Answer:
The value of Coca-Cola share is $40.69
Explanation:
In order to compute the value of Coca-Cola's stock, its closest rival,Pepsi's PE ratio can be used a proxy for Coca-Cola P/E ratio since they are keenly competitive rivals.
Pepsi P/E ratio=Price/Earnings per share
Stock price is $103.56
Earnings per share is $6.49
P/E ratio=$103.56/$6.49
P./E ratio=15.95686
Hence Coca-Cola share price is computed thus
P/E ratio=Price/Earnings per share
P/E ratio same as above
EPS is $2.55
15.95686=Price/$2.55
price=15.95686*$2.55
price =$40.69
Answer:
The answer is D. have already been reinvested in the firm
Explanation:
Retained Earning is that part of income or profit that was not distributed out as dividend.
It is retained to grow the business or make the business bigger. It is part of shareholder's equity.
Option A is wrong. It doesn't increase with operating income. It depends on dividend policy and the net profit
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