Answer:
The correct answer is a) economies of scale
Explanation:
Economies of scale are when a company increases the production or associate with other company, to obtain a better price to reduce the cost of production. This happens because costs are spread over a larger number of goods.
Example:
Company A, require apples to produce his final product. And the provider has a price for each apple, however, if you buy more than 100, he gives you a discount of 5%. Company A can´t afraid this, because it just needs 50 apples per production.
The solution for the company is trying to expand the market, become efficient, to duplicate his production and obtain the discount. Or associate with Company B that needs 50 apples too, to obtain the discount and reduce his cost. (1 big purchase is better than 2 small purchases)
Answer:
Customer loyalty strategy
Explanation:
The customer loyalty strategies are developed by a company to retain its current clients and encourage them to recommend its services or products. mainly, the client loyalty is promoted through different special discounts or additional services that a client will have if recommend the company. these strategies can be used too if the company wants the clients increase the buy of services or products; in this case if they get a certain number of products they will obtain discounts or additional products.
Answer:
a. 19,048
b. 2.1
c. $21
d. Before $2
After $2.1
e. Explanation of tax implication is below
Explanation:
a. Number of shares = Dividend per share × Number of shares outstanding ÷ cost per share
= 1 × 400,000 ÷ $21
= 19,048
b. Earning per share after repurchase = earnings ÷ (shares before-shares outstanding)
= $800,000 ÷ (400,000-19,048)
= 2.1
c. Market Price = Earning per share Price × Earning
= 2.1 × 10
= $21
d. Earning per share before = Earnings ÷ Before shares
= $800,000 ÷ 400,000
= $2
Earning per share after repurchase = $2.1
After share repurchase the earning per share has increased.
e) Price increased 21 dollars in share repurchased. The price remain constant in dividend payout the amount but additional 1 dollar in dividend the investors gains. If dividend is lesser than tax on capital gain then it will become drawback over collect dividend and vice versa.
Answer:
budget constraint
Explanation:
The slope of the budget constraint is determined by the relative price of the two goods, which is calculated by taking the price of one good and dividing it by the price of the other good. Intuitively, the slope of the budget constraint represents how many of the goods on the y-axis the consumer must give up in order to be able to afford one more of the goods on the x-axis. the concept of budget line or what is also called budget constraint is essential for understanding the theory of consumer’s equilibrium.
A higher indifference curve shows a higher level of satisfaction than a lower one. Therefore, a consumer in his attempt to maximize his satisfaction will try to reach the highest possible indifference curve . But in his pursuit of buying more and more goods and thus obtaining more and more satisfaction he has to work under two constraints: first, he has to pay the prices for the goods and, secondly, he has a limited money income with which to purchase the goods. Thus, how far he would go in for his purchases depends upon the prices of the goods and the money income which he has to spend on the goods.
