Answer: B) Keep bidding until all other bidders quit, regardless of your reservation price.
Explanation: Familiar to English auctions, the bidders are aware of the prices of items on sale and the numbers of other bidders. This price is known as the reserve or reservation price which is the limit on the price of the item on sale set by the seller (that is the lowest price the seller is willing to sell the item). The bids start at a low price and keeps coming in until there are no more bids irregardless of the reservation price set. It probably depends on how much you value the item on sale and are willing to pay for it. Not necessarily on the reservation price.
Question Completion with Options:
a. ignore convenience stores in its distribution network.
b. deliver fewer cameras than were needed during a holiday season.
c. miss the customer connection by emphasizing place over convenience.
d. exert too much power in the distribution network.
Answer:
GoPro
production problems forced it to
b. deliver fewer cameras than were needed during a holiday season.
Explanation:
Shortages are avoided by producers as much as possible in order not to cause disequilibrium in the market. Shortages are not the same as scarcity. They are temporary setbacks when the quantity demanded outstrips the quantity supplied at the equilibrium market price. The backlashes result in lost sales and revenue for suppliers. Shortages may clear ways for competitors to enter the market to meet the unsatisfied demand.
Answer:
Investment period = 24 years
Explanation:
The total amount that an investment made today would become if invested at a particular rate for certain number of years is known as the future value.
The $1,200,000 is the desired future value, the $296, 375 is the present value and the 6% is the interest rate.
FV = PV × (1+r)^n
1,200,000 = 296,375 × (1.06)^(n)
(1.06)^(n) = 1200000/96,375
(1.06)^(n) =4.048924504
find the log of both sides
n log 1.06= log 4.048924504
n= log 4.048924504/log 1.06
n = 24
It will take 24 years
Answer:
$800,000
Explanation:
The calculation of book value of the assets of the cosmetics component is given below:-
Gain on Sale of the Assets = Income from Operation of a Discontinued Components - Income from Operations
= $620,000 - $300,000
= $320,000
Gain/Loss on Sale of Asset = Sale Value of Assets - Book Value of Assets
= $1,120,000 - $320,000
= $800,000
Answer:
Required rate of return = 8%
Explanation:
<em>The price of a stock using the dividend valuation model is the present value of the the future dividend expected from the stock discounted at the required rate of return.
</em>
This model is represented as follows
D(1+g)/(r-g) = P
Price, D- dividend payable in now, ke- required rate of return, g- growth rate
35 = 1×(1.05)/ke-0.05
35 × (ke-0.05) = 1.05
35ke - 1.75
= 1.05
35Ke = 1.05 + 1.75
35ke = 2.8
ke= 2.8/35= 0.08
Ke = 0.08× 100 = 8%
Required rate of return = 8%
