Answer:
The correct answer is letter "A": We respond to marginal benefits and marginal costs.
Explanation:
Rational Choice Theory assumes an individual will always make prudent and optimal decisions that yield the most benefits. It is the basis of most mainstream economic theories. The rational choice theory considers the marginal benefit compared to the marginal cost of individuals' decisions. It could prevent people from taking an option without analyzing what is most beneficial for them.
Answer: it increases competition
Explanation:
Just took a test with that question
Answer: a. Customer Persona
Explanation:
A customer persona simply refers to information relating to the life of a person. It includes their demographic information such as their gender, age and marital status and it includes some psychographic information as well such as personality.
Customer personas help marketers group people and their buying behavior so that they can be better targeted for the goods and services being sold based on their demographic and psychographic information.
Answer:
Risk-free rate (Rf) = 8%
Return on market portfolio (Rm) = 15%
Beta (β) = 1.2
Ke = Rf + β(Rm - Rf)
Ke = 8 + 1.2(15 - 8)
Ke = 8 + 1.2(7)
Ke = 8 + 8.4
Ke = 16.40%
Earnings per share (EPS) = $10
Current dividend paid (Do) = 40% x $10 = $4
Retention rate (b) = &6/$10 x 100 = 60% = 0.6
ROE (r) = 20% = 0.2
Growth rate (g) = b x r
= 0.6 x 0.2
= 0.12 = 12%
Current market price (Po)
= Do<u>(1 + g) </u>
Ke - g
= $4<u>(1 + 0.12)</u>
0.1640 - 0.12
= $4<u>(1.12)</u>
0.044
= $101.82
Explanation:
First and foremost, we need to calculate the cost of equity based on capital asset pricing model. Then, we will determine the growth rate, which is a function of retention rate (b) and return on equity(r).
Finally, we will calculate the current market price, which is dividend paid, subject to growth, divided by the excess of cost of equity over growth rate.
Answer:
The correct answer would be lost market share and customers.
Explanation:
When companies start their business and their business starts to boom, they usually get busy in making their products better and better and usually forget to keep an active eye on the competition they have in the markets. Almost 80% of the business owners are clueless about the competition. Due to this negligence, companies start to loose their market share as well as the customers, because they don't have idea about what their competitors have introduced in the market and what strategies they have used to compete in the market.