Answer: 12.98%
Explanation:
The formula for pre-tax return for Gecko company can be calculated is the addition of the capital gains growth rate(g) and the dividend yield.
To get capital gains growth rate, we will use th e after-tax return formula which is:
= Capital Gains Growth Rate (g) + Dividend Yield × (1-Tax Rate)
Capital Gains Growth Rate (g) will now be:
= 12% - 3.5% × (1-28%)
= 12 - 3.5(72%)
= 12 - 2.52
= 9.48%
Pre-Tax Required Return will now be:
= 9.48% + 3.5%
= 12.98%
A(n) <u> high pricing </u>strategy is appealing because it attracts two distinct market segments: those who are not priced sensitive along with more price-sensitive customers.
Price sensitivity can be broadly defined as the degree to which demand changes when the price of a product or service changes.
The price sensitivity of a product depends on how important the price is to consumers compared to other purchasing criteria. Some people value quality over price, making them less sensitive to price. For example, customers looking for high-end products are usually less price-sensitive than bargain hunters. So you are willing to pay more for high-quality products.
In contrast, more budget-conscious people may be willing to compromise on quality. These people don't spend much on things like brand names, even if they are of higher quality than common home-branded products.
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In introducing the opportunity cost of time into the theory of consumer behavior, we find that, all else equal one should consume less of time-intensive goods.
Opportunity cost of time is actual cost of the time lost in performing one activity instead of another. In other words it is the loss of the time done in choosing an opportunity between the two.
One should consume less time intensive goods because it will save more time.
Theory of consumer behavior is the study of how the people decide to spend their money in the given choices to them according to the budget constraints and individual preferences.
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The correct answer is letter D.<span>
<span>The
description above is an example of a collection of demographic information.
This refers to characteristics of a certain population in particular geographic
location. Race, gender, age, profession, among others, are typical examples of
demographics that are commonly used in surveys. </span></span>