Answer:
A
Explanation:
the constant dividend growth model
price = d1 / (r - g)
d1 = next dividend to be paid
r = interest rate
g = growth rate
Interest rate used is usually nominal, thus, it increases with inflation rate
We can see that the interest rate is an inverse function of the value, thus when inflation increases, interest rate increases and price declines
Example
d1 = 5
r = 10%
g = 5%
5/ (0.1 - 0,05) = 100
when interest rate increases to 20% as a result of inflation, value becomes
5 / 0.2 - 0.05 = 33.33
value decreased with increase in inflation
Answer:
the relevant cost will also include the differential cost for taking the order as it is related to the order being taken or not.
Explanation:
The product is regularly used therefore, it will be sold in the future.
addtional inventory cost:
6,600 x (9.80 - 9.40) = 2,640
Cost of good sold
1,300 x 9.20 = 11,960
<u><em>Total cost for the order 14,600</em></u>
Answer: Extended
Explanation:
The extended problem solving variation is one of the process in which the customers are trying to get all the information which is related to the products and the specific brand for the buying purpose.
According to the given question, Kathy is searching online for buying the appliance that is washing machine and she comparing various types of features and the brands based on the model.
Based on the given scenario, the Kathy's purchasing is one of the example of extended problem solving variation where the customer does not aware about the brands and the actual features of the products.
Therefore, Extended problem-solving variation is the correct answer.
