Answer:
Provided in Explanation
Explanation:
This is a very general question however I’ll try to answer it to the best of my knowledge.
If I use my own assumptions then these will be the Projections:
Selling Price $79.99 Selling Price $69.99
Cost of Sales/unit $40.00 Cost of Sales/unit $40.00
Expenses/unit $15.00 Expenses/unit $15.00
Demand @ $79.99 1000 Demand @ $69.99 1200
Sales $79,990.00 Sales $83,988.00
Cost of Sales $40,000.00 Cost of Sales $48,000.00
Expenses $15,000.00 Expenses $18,000.00
Profit $24,990.00 Profit $17,988.00
The final decision however relies on the Price Elasticity of the Product. If the Product is Price elastic then lowering the Price will lead to a significant rise in Demand. However if the Product is Price inelastic then lowering the Price will not lead to a significant rise in Demand and thus profit margins will be lowered. If the Product is Price inelastic then it is better to increase prices in order to gain more profits. In the case of Unit Elasticity the change in Demand will be at the same proportion as price change so it won’t be of any use to change the Price.
Answer:
Decision making
Explanation:
Decision making can be described as a process by which several possibilities are considered and prioritized, resulting in a clear choice of one option over others.
The answer for this question (I think) is D. If they don't study the needs of the customers they don't know who their target group, if they don't cut costs they could waste money, and increasing promotion gains income.
Answer:
The stock valuation model, P0 = D1/(rs - g), can be used to value firms whose dividends are expected to decline at a constant rate, i.e., to grow at a negative rate.
Explanation:
1) The dividends gros model is more useful for companys with an stable history so the predictions on dividend grow are more based on fact rather than speculations
2) no, the dividend yield will be 7%
we work that and got that dividend yield = r-g
3) it is being discounted at the rate of return for the firm, not the growth rate.
5)if grow is zero then, we can calculate. We cannot calcualte under circumnstances of g > r
4) TRUE if g = -2% we can calcualte a stock price as the future cahs flow from dividends can be calculated.
Answer:
Foreign investors who wish to make direct investments in the United States economy
Explanation:
A demander of US currency is an individual or person who would need the dollars to carry out transactions
An investor that would want to carry out a FDI would need US dollars to carry out her transaction because the investment would need to be conducted in dollars
Foreign direct investment (FDI) can be described as when a firm or an individual in one country makes an investment in a business interest in another country.
Foreign direct investment usually takes two form :
the investor sets up a business in the foreign country
the investor acquires foreign assets in the foreign country.
An example is when a US firm establishes a new business in another country.