All categories

2 years ago

Coke and Pepsi battle it out

Business

1 answer:

Tanzania [10]2 years ago

3 0

Answer:1. Advertising

2. D. They have more information about the product and the increased promotions give the consumers deals they otherwise would not have experienced.

Explanation:

The war between Pepsi and Coca- Cola is an advertisement war in which each is trying to gain the consumers patronage by proving the superiority of their product over others. It has nothing to do with research, price nor efficiency.

The advertisement provides more information on the product to the consumers and promotion offer like free gift which they hitherto would not have enjoyed.

Marketing or advertising cost are not passed to consumers and the advertisement been interesting adds little or no value to the consumers.

You might be interested in

What are the typical sources for gathering factual data for informal reports? check all that apply. printed material surveys and

Liono4ka [1.6K]

<span>A good report is based on compact, precise, provable pieces of evidence. The typical sources for gathering factual data for informal reports include all in the list, the printed material, surveys and questionnaires, electronic resources and by observation. Printed material will help you to spot past performance and procedures used to explain former glitches. Data from collections of individuals can be made from using surveys, questionnaires, and inventories. Interviewing people directly involved with the issue creates outstanding main data.</span>

5 0

2 years ago

Williamson, Inc. has a debt-equity ration of 2.5. The firm’s weighted average cost of capital is 10% and its pre-tax cost of deb

vredina [299]

Answer:

Debt Equity Ratio =2.5

Weight of debt =2.5/3.5

Weight of Equity =1/3.5

a. WACC =Weight of Equity*Cost of Equity+Weight of Debt*Cost of Debt*(1-Tax Rate)

10% = 1/3.5*Cost of Equity Capital+2.5/3.5*6%*(1-35%)

(10%-2.5/3.5*6%*(1-35%))*3.5 = Cost of Equity Capital

Cost of Equity Capital = 25.25%

b) Cost of Levered Equity Capital=Cost of Unlevered Equity Capital+Debt*(1-Tax Rate)/Equity*(Cost of Unlevered Equity Capital-Cost of Debt)

25.25% = Cost of Unlevered Equity Capital+2.5*(1-35%)*(Cost of Unlevered Equity Capital-6%)

Cost of Unlevered equity *(1+2.5*0.65)=(25.25%+2.5*0.65*6%)

Cost of Unlevered Equity =(25.25%+2.5*0.65*6%) / (1+2.5*0.65)

Cost of Unlevered Equity = 13.3333%

c) At debt Equity ratio of 0.75

Cost of Levered Equity Capital = Cost of Unlevered Equity Capital+Debt*(1-Tax Rate)/Equity*(Cost of Unlevered Equity Capital-Cost of Debt)

Cost of Levered Equity Capital= 13.3333% + (13.3333%-6%)*0.75*(1-35%)

Cost of Levered Equity Capital =16.9083%

WACC = Weight of Equity*Cost of Equity+Weight of Debt*Cost of Debt*(1-Tax Rate)

WACC = 1/(0.75+1)*16.9083%+0.75/(1+0.75)*6%*(1-35%)

WACC = 11.33%

At debt Equity ratio of 1.50

Cost of Levered Equity Capital=Cost of Unlevered Equity Capital+Debt*(1-Tax Rate)/Equity*(Cost of Unlevered Equity Capital-Cost of Debt)

Cost of Levered Equity = 13.3333% + (13.3333%-6%)*1.50*(1-35%)

Cost of Levered Equity = 18.5333%

WACC =Weight of Equity*Cost of Equity+Weight of Debt*Cost of Debt*(1-Tax Rate)

=1/(1+1.30)*18.5333%+1.30/(1+1.30)*6%*(1-35%)

=10.26%

7 0

2 years ago

A company that produces gift cards for various retail stores implemented a marketing campaign that for a limited time offered a

Helga [31]

Answer:

Market development strategy

Explanation:

It's a growth strategy that aims at identifying new customer for its existing product. As per this strategy, organizations develop products that cater to a new segment apart from its existing segment.

Market development strategy can be implemented through joint ventures, export licensing or direct investment. Here, Company wants to capture new market segment of fresh graduates. So, it is demonstrating market development strategy.

7 0

2 years ago

A one-year zero coupon bond costs \$99.43$99.43 today. Exactly one year from today, it will pay \$100$100. What is the annual yi

KengaRu [80]

Answer:

0.00573

Explanation:

Cost of the bond today = $99.43

Value of bond at end of year = $100

Difference = $100 - $99.43 = $0.57

This $0.57 represents earnings on such bond value, that is yield on the bond.

Thus, yearly yield = $0.57/$99.43 = 0.00573

This value represents the discount rate of 1 year on $100 that is for which present value $99.43.

Final Answer

0.00573

5 0

2 years ago

Management anticipates fixed costs of $74,300 and variable costs equal to 34% of sales. What will pretax income equal if sales a

Temka [501]

Answer:

pretax income is $152080

Explanation:

given data

fixed costs = $74300

variable costs = 34%

sales = $343000

to find out

pretax income

solution

we know that pretax income formula is

pretax income = sales - variable costs - fixed costs

put all these value

pretax income = 343000 - 34% of 343000 - 74300

pretax income = 343000 - 116620 - 74300

pretax income = 152080

so pretax income is $152080

5 0

2 years ago