Answer:
Product line Pricing
Explanation:
The reason is that when the manufacturer produces a number of quality range products and price them accordingly. This means that the customer who has different level of purchasing power can fulfill his needs and wants accordingly. So producing a single product limits the satisfying of needs and wants of small customer segment whereas producing multiple product range helps in targeting a range of customer segments. The different prices of tablets charged here for different products actually reflects the prices of the products.
Answer:
A good use of free cash flow is to Invest in nonoperating assets
Explanation:
Free cash flow (FCF) is a measure of how much cash a business generates after accounting for capital expenditures such as buildings or equipment. This cash can be used for expansion, dividends, reducing debt, or other purposes.
If the underlying objective is to maximize shareholder wealth by increasing the firm’s value. Any use of FCF that negatively affects the firm’s value is not considered a good use of the FCF.
A good use of FCF would be to invest in nonoperating assets such as marketable securities, investments in other companies, etc.)
Answer:
$395833
Explanation:
Calculation to determine How much money is the firm considering borrowing if the interest rate is 8 percent
Amount to borrowed=(95000 / 75000) = [95000 – (X * 0.08)] / 50000
Amount to borrowed=1.26 = [95000 – (X * 0.08)] / 50000
Amount to borrowed=63333.33 = 95000 – (X * 0.08)
Amount to borrowed=31666.65 = X * 0.08
Amount to borrowed=X=31666.65/0.08
Amount to borrowed=$395833.33
Therefore How much money is the firm considering borrowing if the interest rate is 8 percent will be $395833
