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VMariaS [17]
3 years ago
15

Jenny manages sales dealership of high-end luxury brand of automobile. Her target market is limited to a specific social class,

which restricts her customer base. If her company creates cars for middle class consumers she risks:__________
Business
1 answer:
Alborosie3 years ago
7 0

Answer:

The correct answer is letter "A": cheapening his brand .

Explanation:

Businesses of luxury objects such as advanced-technology vehicles have a differential advantage related to other carmakers. Most of their customers prefer those cars because they give them a certain status in society and are accessible to a few people because of the high prices.

Then, <em>if Jeff's companies decide to manufacture cars for the middle class, the dealer risks cheapening the brand but the number of customers could exponentially increase.</em>

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You’ve collected the following information from your favorite financial website.
Nataliya [291]

Answer:

-9.92%

Explanation:

P₀ = Div₁ / (Re - g)

  • Div₁ = next year's expected dividend = $1.12 x (1 - 11.5%) = $0.9912
  • Re = cost of equity = ?
  • P₀ = current stock price = $62.91
  • g = dividend's growth rate = -11.5%

Re =  (Div₁ / P₀) + g

Re = ($0.9912 / $62.91) - 11.5%

Re = 1.58% - 11.5% = -9.92%

Since the cost of equity or required rate of return cannot be negative, I suppose that investors are not worried about Abbott distributing dividends, instead, they prefer that the company reinvests earnings in new projects.

3 0
3 years ago
There are only two consumers in a market, Harry and Hermione. Harry is willing to buy 12 magic wands when the price is $20 per w
Blizzard [7]

Answer:

The answer is 14

Explanation:

8 0
2 years ago
In a statement of cash flows, which of the following would be classified as an investing activity?
Elanso [62]

Answer:

C. The sale of equipment.

Explanation:

Investing activities: It records those activities that include the long-term asset buying and selling. The buying is a cash outflow while the sale is a cash inflow.

The cash outflow decreases the cash balance whereas cash inflow increases the cash balance. So the buying would be shown in a negative sign while the selling is shown in the positive sign

Hence, the correct option is C.

5 0
3 years ago
If a small electric automobile manufacturer is able to gain the social return generated by its electric motor, its demand for fi
Law Incorporation [45]

Answer: shift to the left

Explanation:

The social return helps in comparing the value of benefits and the costs to achieving the benefits. The social return is the ratio of net present value of the benefits in comparison to the net present value of the investment or the costs to getting the benefits.

In this case, if a small electric automobile manufacturer is able to gain the social return generated by its electric motor, it would decrease the demand for financial capital which simply means that the demand for financial capital will shift to the left. This shift to the left is as a result of the gain in its social return gotten by the electric motor.

5 0
3 years ago
EA6.
vodomira [7]

Answer:

$750

Explanation:

The formula for determination of beginning inventory is given below:

Cost of goods sold=opening inventory+purchases-closing inventory

Cost of goods sold=$2,000

Purchases=$2,250

closing inventory=$1,000

Opening inventory=Cost of goods sold+closing inventory-purchases

                             =2,000+1,000-2,250

                             =$750

6 0
3 years ago
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