When SW International declared a dividend of $20,000,000, its market value increased from $8 billion to $8.5 billion. However, it lost a chance to reinvest $20,000,000 in the research and development of a new product which would have earned a profit of $200 million. Thus, this $200 million is referred to as SW International's-T<u>his is the Opportunity cost of the S.W international</u>
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Explanation:
The term opportunity cost refer to the profit that is given up to achieve another thing.
Lets consider the example in this we can analyse the fact that SW international made an alternative choice of declaring the dividend rather than utilizing the money in R&D for a new project .Thus the amount $20,000,000 is forgone in order to achieve the $ 85 million market value.
<u>Thus the $200 million is referred to as the Opportunity Cost.</u>
Darby's correct response is $0.045 per share.
Because we can calculate earnings per share by taking net income after taxes and then dividing it by the total number of common shares that are issued.
Income after taxes = <span>$2,000,000
shares = $44,000,000
Earnings per share = $2,000,000 / $44,000,000
=$2/$44
=$0.045</span>
Services are a form of product that consists of activities, benefits, or satisfactions offered for sale that are essentially intangible and do not result in the ownership of anything.
Answer:
d. Convenience
Explanation:
Chris decides to purchase to pack of bubble gum as he is checking out at Walmart, he didn't intend to buy it, but it was there. These routine purchases best represent convenience products. Convenience products are the goods which customers purchase frequently without any effort and planning. Customers are very less conscious about their purchases because these products do not cost that much, therefore, these decisions are not riskier. For example, buying magazines, newspapers, chocolates, cold drinks, chewing gums, candies and most grocery items. Convenience goods are mostly non durable.
