Maria recently put her house on the market at an asking price of $260,000. She realizes, however, that in order to sell the house, she may have to use price skimming
<h3>What is
price skimming?</h3>
Price skimming is a pricing strategy that a company can use when launching a new product or service.
Price skimming is commonly used for new technologies. DVD players are an excellent example of this. When DVD players first became available in the late 1990s, they could cost up to $1,000. If you do a quick search on Amazon, you'll find that a new DVD player costs only $33.
The pricing strategy will be influenced by the stage of the product's life cycle. The process of charging a relatively high price for a product is referred to as price skimming. When a product is new to the market, skimming is commonly used (in its introduction or growth phase)
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Answer:
For Plan A = 6.7
For Plan B = 7.8
Explanation:
Data Given:
First of all, we need to sort out the data because it is very necessary to solve for this question requirement.
Year 1
Plan A = 1.10 Plan B = 0.10
Year 2
Plan A = 1.10 Plan B = 1.20
Year 3
Plan A = 1.10 Plan B = 0.20
Year 4
Plan A = 1.70 Plan B = 4.50
Year 5
Plan A = 1.70 Plan B = 1.80
Total Number of Years = 5
Now, in order to calculate the total number of dividend per share over the 5 years time period. We need to sum the individual entries of Plans.
So,
For Plan A:
Total number of dividend per share = 1.10 + 1.10 + 1.10 + 1.70 + 1.70 = 6.7
Total number of dividend per share = 6.7
Similarly,
For Plan B:
Total number of dividend per share = 0.10 + 1.20 + 0.20 + 4.50 + 1.80 = 7.8
Total number of dividend per share = 7.8
Answer:
The answer is $750 millions
Explanation:
After recapitalization, the Weight of Debts of Nichols Corporation is 25%. Hence, its Weight of Equity Capital is: 100% - 25% = 75%.
The formula of Value of Operations as follows:
Value of Operations = Weight of Debts x Value of Debts + Weight of Equity Capital x Value of Equity Capital
Because Nichols Corporation's value of operations is equal to $600 million after recapitalization, we have the following equation with S as the value of equity after the recap:
600 = 25% x 150 + 75% x S
=> S = (600 - 25% x 150) / 75% = 750
The way a company goes about their business and their mission statement has a lot do with how company culture is set up.In basic terms it is the way things are done
