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3 years ago

In the new product development process, new product is introduced to the market during the ________ stage.

Business

1 answer:

prohojiy [21]3 years ago

5 0

Answer:

Introduction

Explanation:

The product is new in the market, sales are slow and to push it higher the company has to incur heavy expenditure on advertisement to make it appealing to customers. So products are introduced during the Introduction Stage.

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Assume that today is December 31, 2019, and that the following information applies to Abner Airlines: After-tax operating income

melamori03 [73]

Answer:

The company's stock price today should be $71.17 per share.

Explanation:

The corporate valuation model approach can be used to estimate this by using the following steps:

Step 1: Calculation of the free cash flow

Free cash flow is the cash a firm generates after accounting for capital expenditure. This can be estimated using the following formula:

Free Cash Flow (FCF) = After-tax operating income + Depreciation expenses - Capital expenditure

For this question, we therefore have:

Free Cash Flow (FCF) = $700 + $150 - $375 = $475 million

Step 2: Calculation of Value of operations (Vo)

Vo = FCF / (WACC - FCF growth rate) = 475 / (11% - 7%) = $11,875 million

Step 3: Calculation of the Firm value

Firm value = Vo + Non-operating assets = $11,875 + $199 = $12,074 million

Step 4: Calculation of value of equity

Value of equity = Firm value - Debt = $12,074 - $3,534 = $8,540 million

Note: The correct amount of debt is $3,534 not $3.540 as mistakenly given, may be due to typographical error, in the question.

Step 5: Calculation of stock price per share today

Stock price per share = Value of equity / Number of shares outstanding = $8,540 / 120 = $71.17 per share

Therefore, the company's stock price today should be $71.17 per share.

7 0

3 years ago

Politicians often argue for tariff increases in order to reduce the nation's dependence on imports. If tariffs are increased, th

Helen [10]

Answer:

a decrease in both American imports and exports.

Explanation:

Trade can be defined as a process which typically involves the buying and selling of goods and services between a producer and the customers (consumers) at a specific period of time.

Basically, trade can be categorized into two (2) main groups and these are;

I. Import: this involves bringing in goods from a foreign country to sell in a different (domestic) country.

II. Export: it involves the sales of goods produced in a domestic country to a foreign country.

Some examples of trade barriers are import license, quotas, subsidies, embargo, currency devaluation, local content requirements, tariffs, etc.

A tariff can be defined as tax levied by the government of a country on goods and services imported from another country.

A tariff increase usually reduce the nation's dependence on imports.

Hence, if tariffs are increased, the long-run effect is most likely to be a decrease in both American imports and exports.

5 0

3 years ago

When the United States economy entered a deep recession in 2007, opinions were varied and widespread about how government econom

klasskru [66]

Solution and Explanation:

The governments have focused attention on long-term productivity growth.

The common habitat gives urgent sources of info and administrations to financial improvement, yet its job for profitability development is inadequately investigated. Ecological shortages can represent a delay in profitability development and a hazard for its manageability. Simultaneously profitability development is regularly observed as the answer to ecological difficulties. Methodological issues flourish, by and large, the writer proposes that ecological issues are a possibly significant hazard factor. Hypothetical models will in the general center the job of the asset increasing specialized advancement over the long haul, considering ecological imperatives. Macroeconomic examinations propose the commitment of the regular habitat to efficiency development has been humble by and large. Microeconomic investigations center around fractional balance impacts, which much of the time have been discovered bigger than anticipated. At long last, contextual investigations of chronicled civilization breakdown recommend the dangers might be critical.

3 0

3 years ago

One of the indirect costs of bankruptcy is the incentive toward underinvestment. underinvestment generally would result in?

zysi [14]

By choosing high-risk ventures, stockholders steal wealth from bondholders. The incentive for underinvestment is one of bankruptcy's indirect costs.

Underinvestment would typically lead to - The company rejecting profitable proposals that would unquestionably be approved if the company were fully funded by equity.

How does a company's capital structure get impacted by bankruptcy costs?

The likelihood of bankruptcy may rise as a result of higher capital expenses and increased risk.
The company's WACC rises over the ideal level when additional debt is added to its capital structure, raising the cost of bankruptcy even more.

Learn more about bankruptcy

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3 0

2 years ago

Let's try to determine the cost function for another company like ABC who makes sausages. Assume costs are as follows:

baherus [9]

Answer:

$3.30 per pound

Explanation:

The computation of the variable cost portion of their cost formula is shown below:

= Product cost + wages + utilities cost

= $1.15 per pound + $1.95 per pound + $0.20 per pound

= $3.30 per pound

The above cost i.e product cost, wages, and the utilities cost are terms as the variable cost portion so all these three would be considered and others are ignored

6 0

3 years ago