Answer:
Market skimming
Explanation:
Market skimming is pricing strategy of organizations under which a product is priced higher when it is introduced to make maximum profit and after the product seeps in to the market, then price is reduced.
This pricing strategy is adopted by organizations that introduce an innovative product in the market that has the potential to be priced higher.
Apple followed this strategy as it introduced first iPod which was new to the market at considerably higher price of $500. This was possible as there were no competitors. Afterwards, it reduced the price of next version as then many competitors entered the market.
Answer:
Option a
Explanation:
The efficient-market theory relates to the financial economics concept which claims that asset values represent all the knowledge available. The direct inference is that it is difficult to reliably "outperform the market" on a threat-adjusted basis because stock rates will respond only to fresh knowledge.
Thus, she is building her portfolio by including an index fund, which are the funds that are managed by copying a particular index of some proclaimed funds such as S and P etc.
Answer:
$4.67 per share
Explanation:
The computation of the diluted earning per share is shown below:
= (Total income - preference dividends) ÷ ( outstanding shares + diluted shares)
where,
Total income is $50,000
Outstanding shares is 10,000
And, the diluted shares is
Amount paid towards shares = Options issued × Exercise price per share
= 1,000 × 6
= $6,000
And,
Value of options = Amount paid towards shares ÷ Current market price
= $6,000 ÷ $20
= 300
So,
Diluted shares is
= Options issued - value of options
= 1,000 - 300
= 700
So Diluted Earnings per share is
= ($50,000) ÷ (10,000 + 700)
= $4.67 per share
We simply applied the above formula
Answer:
a. Cash basis $15,000
b. Accrual basis $2,500
Explanation:
Under the cash basis of accounting, expenses are recorded or recognized in the books not necessarily when incurred but when cash is paid. This is not in line with the matching concept which requires that expenses be recognized the period it is incurred as well as the resulting revenue.
Hence, the $15,000 paid on January 1 would have been recognized as an expense for the two months ending February 28 using the cash basis.
Using the accrual basis, monthly expense
= $15,000/12
= $1,250
Hence advertising expense for 2 months
= 2 * $1,250
= $2,500
Answer:
See below
Explanation:
Given the above information, the average debtor days is computed as seen below.
= Total receivables / Credit sales × 365
Total receivables = $246,000
Credit sales $2,430,000
Then,
Average debtor days
= $246,000 / $2,430,000 × 365
= 36.95 days
Hence, it would take 36.95 days on the average for credit customers to pay off their debts during this past year
