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joja [24]
3 years ago
15

The Woods Co. and the Speith Co. have both announced IPOs at $69 per share. One of these is undervalued by $16, and the other is

overvalued by $6, but you have no way of knowing which is which. You plan to buy 1,800 shares of each issue. If an issue is underpriced, it will be rationed, and only half your order will be filled.a.If you could get 1,800 shares in Woods and 1,800 shares in Speith, what would your profit be? (Do not round intermediate calculations.)b. What profit do you actually expect? (Do not round intermediate calculations.)
Business
1 answer:
lana [24]3 years ago
6 0

Answer:

(a) $18,000

(b) $3,600

Explanation:

(a) Profit would be:

= (No. of shares × Undervalued) - (No. of shares × Overvalued)

= (1,800 × $16) - (1,800 × $6)

= $28,800 - $10,800

= $18,000

(b) Only half your order will be filled.

With rationing (and being an uninformed investor) we expect our profits:

= (No. of shares × Undervalued) - (No. of shares × Overvalued)

= (900 × $16) - (1,800 × $6)

= $14,400 - $10,800

= $3,600

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larisa86 [58]

Answer:

The correct answer is D) product differentiation.

Explanation:

Product differentiation is a competitive strategy that aims to allow the consumer to perceive differently the product or service offered by a company, with respect to those of the competition.

Product differentiation can be based mainly on various attributes such as quality, color, size, after-sales service, specialized attention, location, brand recognition or luxury. But any attribute makes perceive a product or service differently is considered product differentiation.

It should be noted that the differentiation also has a subjective element since consumers can perceive that a certain brand is different from another based not on the comparison of objective characteristics but on the idea that they have made of the company and its image.

3 0
3 years ago
Eddie sells furniture and earns 12% commission. This week he sold a couch for $1234, a bedroom suite for $1789, and a chair for
Alborosie

Complete question :

Eddie sells furniture and earns 12% commission. This week he sold a couch for $1234, a bedroom suite for $1789, and a chair for $563. Calculate Eddie's commission.

Answer:

$717.20

Explanation:

Given that :

Percentage commission earned on sale = 12%

Cost of items sold this week:

Couch = $1234

Bedroom suite = $1789

Chair = $563

Total cost of items :

($1234 + $1789 + $563) = $3586

Commission of 20% on sales :

20% of $3586

0.2 * $3586

= $717.20

3 0
3 years ago
Define Justice as it relates to Business
arlik [135]

Answer:

Fairness, lawful, righteous, telling the truth, being equal.

Explanation:

3 0
3 years ago
A net operating loss:
Len [333]

Answer:

a. may be carried back 2 years or carried forward up to 20 years.

Explanation:

As a tax relief to a firmn which current year ended in a loss the government allow to deduct this from the future profit up to 20 years or to reduce the tax obligation for the previous two years

This makes the tax system more just as it is not considering only the good years of the organizations. It also has a particular importance in business which the first years are losses (vineyard or walnuts until the wine is done or the trees generate enough production to pay up the cost) as they can later reduce their gain to compensate for the first years.

8 0
3 years ago
Salon Du Jour offers special combination packages at a reduced price. Separately, a haircut is $30 and a conditioning treatment
adell [148]

The given scenario is referred to as product bundle pricing.

Option E

<u>Explanation: </u>

Product bundles consist of various individual products or services sold as a merged package to consumers. For particular, brand bundles consisting of complementary products or, less often, similar products are considered "package deals."

When retailers sell multiples of exactly the same items, it is usually called "a multipack," not a package of items.  

For example, a stationary meal in a restaurant or a beach package that contains sunscreen, sand-sheets, towels, and flip-flops as just a product that can be purchased.

Many stores only market many stock products in a consumer package rather than as single or packaged pieces. The package generally costs less for retailers selling identical items separately and as part of a consumer bundle than if a buyer bought the items separately.

7 0
3 years ago
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