Answer:
$2,033
Explanation:
The computation of the terminal value at the end of the year 2 is shown below:
= {Free cash flow of the firm × (1 + growth rate) × (1 + growth rate) + (1+ growth rate)} ÷ (WACC - growth rate)
= {($80 million × (1 + 0.10) × (1 + 0.10) × (1 + 0.05)} ÷ (10% - 5)
= $101.64 ÷ 0.05
= $2,033
We simply applied the above formula so that the Terminal value could arrive
The correct answer is the firm's component cost of debt for purposes of calculating the wacc is 7.32%.
Answer:
Product Owner
Explanation:
A product owner is an intermediary between the development team and the users . It evaluates a project from the perspective of a customer by finding out what features of a product will satisfy their needs and and works with the development team in realizing it . It acts to represents the interest of the customers by ensuring that the efforts of the development team focused on developing a project that will fulfill the business objective of the project
Answer:
The increase in demand of the product with the higher price or decrease in demand for the other goods is because the substitution effect is outweighed by the income effect of price increase.
Explanation:
The above explanation in economics refers to Giffen Good. The idea behind this concept Giffen is that if you do not have money and there is an increase in the price of a fundamental product such as bread, it is still impossible to afford other alternatives, hence you will go ahead to buy bread or avoid buying any of the product. Hence, the demand for other product will also decrease in this case. This means that the demand for product with higher price or decrease in other substitute product is due to the fact that the income effect outweighs the substitution effect. Hence people do not have the money to even afford the alternative product.
<span>There are two possible types of advertising that apply. Companies such as maybelline often use push/persuasive advertising to convince consumers to take action such as switching brands, trying a new product, or even continuing to buy the advertised product.
1) Persuasive advertising is when company promotes its products in every possible way such as representing the promotional item by flyers, magazines, television, radio and billboards. Such type of advertising is considered to be traditional and its viral influence usually leads company to success in sales.
<span>
2) What about push advertising, this type is meant to make company be competitive in sphere of marketing. It is usually characterised by persuading promotion that is aimed to make a consumer buy a particular product, ensuring that this one is the best among its analogues.</span></span>
