Answer:
Different countries have different advertising/promotional laws. Plus you have no target market if you're creating a promotional message to use for all countries. Also, assuming if your promotional message inspired, say a person in Africa, a person in Russia, a person in China, and a person in Japan bought a product from your promotion, you would have to ship to all of those countries with extreme shipping rates.
Answer:
The maximum that should be paid for the stock today is $45 per share.
Explanation:
To calculate the current share price or the maximum that should be paid for the stock today, we will use the dividend discount model approach.
The dividend discount model (DDM) estimates the value of a share/stock based on the present value of the expected future dividends from the stock. We will use the two stage growth model of DDM here as the growth in dividends of the stock is divided into two stages.
The formula for current price under two stage growth model is,
P0 = D0 * (1+g1) / (1+r) + D0 * (1+g1)^2 / (1+r)^2 + ... + D0 * (1+g1)^n / (1+r)^n +
[( D0 * (1+g1)^n * (1+g2)) / (r - g2)] / (1+r)^n
Where,
g1 is initial growth rate
g2 is the constant growth rate
r is the required rate of return
So, the price of the stock today will be,
P0 = 2 * (1+0.20) / (1+0.12) + 2 * (1+0.20)^2 / (1+0.12)^2 +
[( 2 * (1+0.20)^2 * (1+0.06)) / (0.12 - 0.06)] / (1+0.12)^2
P0 = $45
Answer:
The correct answer is C.
Explanation:
Giving the following information:
The Nelson Company's radio division currently is purchasing transistors from the Charlotte Co. for $3.50 each. The total number of transistors needed is 8,000 per month. Nelson Company's electronics division can produce the transistors for a cost of $4.00 each and they have plenty of capacity to manufacture the units. The $4 is made up of $3.25 in variable costs, and $0.75 in allocated fixed costs.
Because there is unused capacity, we will not have into account the fixed costs.
Unitary cost= $3.25
It is more convenient to produce in house. The indifference price is $3.50.
Answer:
$21.71%
Explanation:
Given that
Monthly saving = $760
Gross income = $3500
The computation of the savings ratio is shown below:-
Savings Ratio = (Monthly savings ÷ Gross Income) × 100
= ($760 ÷ $3,500) × 100
= $0.21 × 100
= $21.71%
Therefore for computing the saving ratio we simply divide gross profit by monthly saving and after a result we multiply by 100.
