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3 years ago

Suppose we have the following information concerning the printed magazine and digital magazine subscription markets:

Business

1 answer:

Sidana [21]3 years ago

6 0

Answer:

Cross-price elasticity of demand between printed and digital magazine subscriptions is 8.91.

Explanation:

Percentage change in price of Printed Magazine Subscription = ((Printed Magazine Subscription Price1 - Printed Magazine Subscription Price0) / Printed Magazine Subscription Price0) * 100 = (($13.40 - $20) / $20) * 100 = -33%

Percentage change in quantity of Digital Magazine Subscription Quantity = ((Digital Magazine Subscription Quantity1 - Digital Magazine Subscription Quantity0) / Digital Magazine Subscription Quantity0) * 100 = ((208 - 216) / 216) * 100 = -3.7037037037037%

Cross-price elasticity of demand between printed and digital magazine subscriptions = Percentage change in price of Printed Magazine Subscription / Percentage change in quantity of Digital Magazine Subscription Quantity = -33% / -3.7037037037037% = 8.91

Note: The relationship between printed and digital magazine subscriptions is that they are substitutes because the cross-price elasticity between them is positive. That is, an increase in the price of printed digital magazine makes consumer to switch to and buy more of digital magazine which is a substitute.

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Both Viacom and Paramount owned a diverse group of entertainment businesses. QVC was a televised shopping channel. The Paramount

nata0808 [166]

Answer:

The business judgement rule states that if the board takes decision in good faith and in best interest of the corporation considering the information available then its decision is not to be questioned by the courts. The courts can intervene only if there is any breach of good faith, due care or loyalty.

The above case is similar in facts with another case paramount vs time. In that case Time decided to merge with another company named Warner. Paramount also started bidding for Time but the directors of Time rejected their bid offer citing that warner merger would be more suitable for the company strategy.

Paramount then brought the case against Time in court.The court stated that the instant case was different from another case (REVLON VS MacAndrews) where Revlon was up for sale and hence it was necessary for the board to sell its assets to the highest bidder.

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3 years ago

Great Lakes Packing has two bond issues outstanding. The first issue has a coupon rate of 3.50 percent, a par value of $1,000 pe

katrin [286]

Answer:

2.9652%

Explanation:

to determine the cost of debt we must use the FMV of the bonds plus the YTM:

first bond:

FMV = 1.09 x $1,000 = $1,090 x 3,600 bonds = $3,924,000

YTM = {C + [(F - P)/n]} / [(F + P)/2] = {17.5 + [(1000 - 1090)/16]} / [(1000 + 1090)/2] = (17.5 - 5.625) / 1045 = 1.136% x 2 = 2.27% annual

second bond:

FMV = 0.95 x $2,000 = $1,900 x 3,950 bonds = $7,505,000

YTM = {C + [(F - P)/n]} / [(F + P)/2] = {59.4 + [(2000 - 1900)/42]} / [(2000 + 1900)/2] = (59.4 + 2.38) / 1950 = 3.168% x 2 = 6.34% annual

total debt = $3,924,000 + $7,505,000 = $11,429,000

weighted average after tax cost of debt:

{($3,924,000/$11,429,000 x 2.27%) + ($7,505,000/$11,429,000 x 6.34%)} x (1 - 0.40) = (0.779% + 4.163%) x 0.6 = 4.942% x 0.6 = 2.9652%

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4 years ago

Compared to less developed countries, more developed countries have higher rates of?

Taya2010 [7]

Resembled to more developed countries, slight developed countries have a higher ratio of workers in the condition of goods and services the tertiary sector most individuals must produce food for their survival sector of the economizing.

<h3>What is the difference between a more developed country and a less developed country?</h3>

A developed country is a government that has a high level of automation and per capita income while a developing country is a country that is still in the early phases of industrial development and has a low per capita revenue.

To learn more about developing countries visit the link

brainly.com/question/14927048

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2 years ago

The _____ quality attributes are embedded in the total product, that is, the physical or core product and all the additional fea

Agata [3.3K]

If I've got it right, the answer with missing word looks like this: The market-perceived quality attributes are embedded in the total product, that is, the physical or core product and all the additional features the consumer expects.

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3 years ago

On March 1, Pimlico Corporation (a U.S.-based company) expects to order merchandise from a supplier in Sweden in three months. O

luda_lava [24]

Answer and Explanation:

The computation is shown below:

a. As a premium expense

= ($0.460 - $0.44) × 695,000

= $13,900

b. As a difference of 3 months spot rate and spot rate

= ($0.455 - $0.44) × 695,000

= $10,425

The first one represents the premium expense for $13,900 and the second part represents the adjustment to the net income in a positive way

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3 years ago