kelso electric is an all-equity firm with 55,250 shares of stock outstanding. the company is considering the issue of $375,000 in debt at an interest rate of 9 percent and using the proceeds to repurchase stock. under the new capital structure, there would be 34,500 shares of stock outstanding. ignore taxes. what is the break-even ebit between the two plans?

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Answer 1

Break even EBIT between two plans  = $89864.46

What is EBIT?
EBIT (earnings before interest and taxes) is a measure of a company's profitability. EBIT is calculated as revenue less expenses minus tax and interest. Able to operate earnings, operating profit, and financial gains before interest and taxes are other terms for EBIT. EBIT is synonymous with operating income because it measures the profit generated by a company's operations. EBIT focuses exclusively on a company's ability to generate income from operations by ignoring variables such as tax burden and capital structure by ignoring taxes and interest expense. EBIT is a particularly useful metric for determining a company's capacity to generate enough earnings to be lucrative, pay down debt, and fund current operations.

All Equity firm
Earning per share (EPS) = EBIT ( 1- tax ) / number of shares outstanding
EPS = EBIT(1-0)/ 55250
EPS= EBIT/55250
Plan 2: Debt - Equity firm
EPS = (EBIT- Interest) (1-tax) / number of shares outstanding
EPS= (EBIT- 375000*9%)(1-0)/34500
EPS= (EBIT-33750)/34500

At break even level of EBIT
EBIT/55250 = (EBIT-33750)/34500
34500EBIT= 55250*EBIT-1864687500
1864687500= EBIT(55250-34500)
EBIT= 1864687500/20750= $89864.46
Break even EBIT between two plans  = $89864.46

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Related Questions

if marginal cost is equal to average total cost, then: a marginal cost is increasing. b average variable cost is decreasing. c average total cost is at its maximum. d average total cost is increasing. e average total cost is at its minimum.

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if the marginal cost is equal to the average total cost, then the average total cost is at its minimum.

The marginal cost in economics is the difference in total cost that results from increasing the quantity produced, or the price of producing more.

The term "marginal cost" describes the rise or fall in price associated with producing or providing services to an additional consumer. It also goes by the name incremental cost.

The marginal cost is lower than the average cost as the average cost drops. The marginal cost is higher than the average cost when the average cost rises. The marginal cost is equal to the average cost when the average cost remains constant (at a minimum or maximum).

Unit costs and productivity are summarized by the average cost curves. The productivity curves' mirror images are the cost curves. ATC = (VC + FC) /TP. When average cost curves are falling, the marginal cost (MC) curve is below them; conversely, when they are rising, it is above them.

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in 2015, the environmental protection agency charged volkswagen with cheating on emissions tests of its diesel vehicles. this is an example of bureaucratic

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Answer: bureaucratic enforcement

In 2015, the environmental protection agency charged Volkswagen with cheating on emissions tests of its diesel vehicles. this is an example of bureaucratic enforcement.

What is environment?

The term “environment” refers to the surroundings on earth. The environment is based on living and non-living things. The environment's effect on human life The biotic elements of the environment are plants, fisheries, animals, forests, and bacteria. The abiotic elements are water, land, rocks, air, etc.

During the period of the 2015, are the based on the environmental protection agency. There was on the fraud of the cheating on emissions tests of its diesel vehicles. It was on the clearly example of the bureaucratic enforcement.

As a result, In 2015, the environmental protection agency charged Volkswagen with cheating on emissions tests of its diesel vehicles. this is an example of bureaucratic enforcement.

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4.43. you borrowed $12,000 to buy a new car from a bank at an interest rate of 9% compounded monthly. this loan will be repaid in 48 equal monthly installments over four years. immediately after the 20th payment, you desire to pay the remainder of the loan in a single payment. compute this lump-sum amount.

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The 20th monthly payment the remainder of the loan can be paid in the entirety by a lump-sum payment of $7,521.09. Here, is the attached solution.

What Is an Equated Monthly Installment (EMI)?

Equivalent monthly instalments (EMIs) are fixed payments made by a borrower to a lender on a particular day each month. In order to pay off the loan in full over a predetermined number of years, equal monthly instalments are applied to the principal as well as interest each month.

The borrower pays regular periodic payments to the lender over a number of years to pay off the loan in the most popular loan forms, including mortgages on real estate, vehicle loans, and student loans.

A borrower makes a set payment to a lender on a specific day each month known as an equated monthly instalment (EMI).

Every month, EMIs are used to pay both interest and principle, reducing the loan's balance over a certain amount of time.

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Imagine that you are starting your own small business selling your photography services. You are planning to start small because you don’t have a lot of start-up funds; however, you know that it is important to have a website. You have decided to design and create your own website until you can afford a web designer. What elements will you include to ensure that your site is accessible and user-friendly? Explain and describe what essential elements you will focus on and include on your website and why.

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The elements you should include to ensure your site is accessible and easy to use are:

PortfolioObjective languageContact informationVisual informationWhat elements should be focused on when creating a website?

To sell a service, like the photographs exemplified in the question, it is essential that you first focus on creating a system with a simple programming that allows the target audience to easily find the information to contact you and your work portfolio.

Therefore, a website is essential for the business to build an online presence, where stakeholders can find all the information they need in an easy and objective way.

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Good domain name, website hosting, Portfolio, Objective language, contact information and Visual information are some of the essential elements.

What is start-up?

A startup is a business that is just starting out. When one or more business owners wish to provide a good or service they think there is a market for, they launch startups.

One or two entrepreneurs who are driven to close a market gap with an innovative good or service commonly run startups. A startup business is more focused on quick and profitable growth within its target market than a small business that often prefers to remain small.

Thus, Good domain name, website hosting, Portfolio, Objective language.

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answer the question on the basis of the following total utility data for products l and m. assume that the prices of l and m are $3 and $4, respectively, and that the consumer's income is $25 units of l total utility units of m total utility 1 9 1 16 2 15 2 28 3 18 3 36 4 20 4 40 5 21 5 42 what level of total utility does the rational consumer realize in equilibrium?

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A situation in which opposing forces are acting in balance or at rest. equitable distribution of all forces, effects, etc.; equal impact. emotional or mental equilibrium; equanimity: She lost it under the burden of the circumstances.

Explain about the equilibrium?

The Latin term libra, which meaning weight or balance, is the origin of the word equilibrium. Several instances of equilibrium include: a book that is open and at rest. a vehicle that is going steadily. a chemical process where both the forward and backward rates of reaction are equal.

Equilibrium is essential for a market to be both efficient and balanced. A market cannot move away from its equilibrium price and quantity since it is maintaining a balance between the quantities provided and demanded.

All buyers and sellers are pleased once the market reaches equilibrium, and there is no longer any upward or downward pressure on the price.

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during which stage of the product life cycle do customer service and repairs begin to take on significance as a way to differentiate a firm's products?

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The customer service and repairs take on significance during the post-purchase stage of the product life cycle.

What is product life cycle?

A product life cycle is the period of time between when a product is initially offered to consumers and when it is removed from the market. The life cycle of a product is typically divided into four stages: introduction, growth, maturity, and decline. Management and marketing experts use product life cycles to assist establish advertising schedules, price points, growth into new product markets, packaging redesigns, and other factors. They can also assist in determining whether newer items are ready to replace older ones on the market.

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a bank lends money for a year at an interest rate of 7%, and the inflation rate for that year turns out to be 5%. what is the bank's real rate of return for that year?

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the banks real rate of return that year is 2% !!

a receipt issued at the time of application upon the payment of premium that provides coverage effective as of the date of the application or medical exam, as long as the policy is issued as applied, is referred to as a:

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Life, health, and some types of property insurance contracts include a conditional receipt; if the insured is thought to be covered by the insurer, coverage starts on the day the insured receives the conditional receipt.

What is Conditional Receipt?

Contracts for life, health, and specific types of property insurance include a conditional binding receipt.When the insured receives the conditional binding receipt, if the insurer determines they are covered, coverage starts.Without a conditional binding receipt, a life and health insurance policy is not valid until it is delivered to the insured and the payment is paid.A conditional receipt and a binding receipt can serve the same purpose as a conditional binding receipt, although they serve different purposes.A conditional binding receipt stipulates that coverage will be in effect from the date of application or medical examination if a premium is submitted with the application, as long as the insurer would have granted the coverage based on the premium.

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assume that when tristan made the agreement with the pr firm, he failed to read the agreement closely. instead of agreeing to a one-time payment of $20,000, tristan actually agreed to monthly payments for $20,000 over the course of the next year. if a court upholds the contract as being valid, could vlad and lea's personal assets be at risk if it is determined they are partners?

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In the event that the partnership's assets are insufficient to pay the obligation, they may indeed be held personally accountable. Personal assets are valuable possessions that are owned by an individual. Examples of such tangible personal possessions abound. Homes, real estate, automobiles, and jewelry are a few of these.

Any other item with a cash worth can likewise be considered a personal asset. Such personal assets and their values are frequently taken into account when people go to a bank or other institution to seek for loans. Liabilities are listed on a company's balance sheet.

The financial obligations of a firm are described as liabilities in accounting. The accounting equation states that the total amount of liabilities must match the difference between the total amount of assets and the entire amount of liabilities.

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an off-shore windfarm is likely coming to north carolina, and beachfront property owners are concerned about potential property value impacts. to monetize these impacts, one could use the nonmarket valuation technique. select one: a. averting behavior. b. travel cost. c. hedonic. d. contingent valuation.

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One could use the hedonic non-market valuation technique to monetize the impacts on property value.

What does monetize mean?

Monetization is described as a method through which something is converted into an asset that can generate money.

The hedonic non-market valuation technique is described as a non-market value evaluation method. It attempts to segregate the impact of the non-market features like noise pollution, nearness of properties to beaches, and nearness to a landfill area on an asset or any property.

It can e concluded that one could use the hedonic non-market valuation technique to monetize the impacts on property value.

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In order for the people to take a fresh look at its brand, the american red cross used a ________ strategy.

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In order for the people to take a fresh look at its brand, the American red cross used a brand revitalization strategy

Define brand revitalization strategy.

When a product enters the maturity stage of its life cycle and profits have significantly declined, a brand revitalization marketing plan is used. It is an effort to reintroduce the product to the market and protect the customers who are the sources of equity. In a cutthroat industry, brand rejuvenation aids in shattering stereotypes and luring in the intended clientele.

Brand revival is required to address specific problems that damage the company's reputation or frighten customers or employees. It is a marketing tactic that is typically employed when a product reaches the PLC maturity stage and profits begin to rapidly decline as the market becomes saturated. Compared to the introduction of a fully new brand or product, it is less expensive and hazardous.

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on april 1, a company takes on an 18-month job and receives a $10,000 advance that is recorded in unearned revenue. if no adjusting entry is made at year-end, how will the financial statements be affected?

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The company's financial statements should exaggerate liabilities and understate revenue if the year-end adjustment entry for unearned revenues is not made.

The liabilities in the book are larger than their true balance and the revenue value is lower than its true earned value as a result of the inability to record a year-end adjustment entry for unearned revenue.

Unearned revenue is defined as money received in advance but not yet used for the purchase of products or services.

Revenue should be understated if the entry is not made since it is not revenue but rather income that was received in advance, making it a liability for the corporation to provide the goods or services. Following the provision of products and services, the revenue will decrease the liability, and Income will be noted.

If the product or service isn't supplied within a year, the balance sheet records it as a long-term liability.

Before financial statements can be created, all account balances must be updated with adjusting entries. These modifications are the consequence of time passing or slight changes in account balances rather than actual events or transactions. Five different categories of adjusting entries

accrued income. An accumulated revenue adjustment must be made when revenue is generated in one accounting period but not recognized until a subsequent period.

accumulated costs

Deferred income.

prepaid costs.

expenditures for depreciation.

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marco has gotten questions from his current customers about digital pet feeders for their dogs. if marco decides to introduce a new digital pet feeder to the upcycled dog accessories line, which growth strategy would he be using?

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The growth strategy Marco would be using is called the product development strategy.

What is a product development strategy?

Product development strategy is described as the strategy that emphasizes actions and methodologies, to introduce new services and products in a market or modify an existing product through which business can be created. It is an important strategy for growth because market research is necessary, and subsequently a plan is also developed.  

In this scenario, Marco carried out market research by questioning his current customers on digital pet feeders for their dogs. Based on the questioning, Marco introduced a new product in the form of a new digital pet feeder.

It can be concluded that the growth strategy Marco would be using is called the product development strategy.

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the first mncs or joint stock companies were out to make a profit, but more importantly served the needs of their home countries. what economic system, the most prominent commercial ideology in the 16th and 17th centuries, did these companies work under? mercantilist socialist capitalist

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the economic system, the most prominent commercial ideology in the 16th and 17th centuries, these companies work under is mercantilist

The approach of mercantilism encourages a high level of export and a low level of import.

Governments utilized their economy to strengthen state authority at the expense of other nations in a process known as mercantilism. Governments wanted to build up their riches in the form of bullion and make sure that exports outpaced imports (mostly gold and silver).

Economic theory is founded on the conviction that:

1) The amount of accumulated wealth determines a country's prosperity, and

2) Government policies should encourage exports and discourage imports in order to increase wealth. (Lessen your reliance on foreign nations.)

a) The 16th and 17th centuries (the 1500s–1600s), when mercantilism was the dominant doctrine.

b) Establishment of joint stock corporations (British and Dutch East India Co.)

c) Import restrictions such as tariffs and quotas that safeguard domestic producers by limiting imports.

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on january 1, 2024, the shagri company began construction on a new manufacturing facility for its own use. the building was completed in 2025. the only interest-bearing debt the company had outstanding during 2024 was long-term bonds with a book value of $11,000,000 and an effective interest rate of 8%. construction expenditures incurred during 2024 were as follows: january 1$ 600,000 march 1660,000 july 31540,000 september 30700,000 december 31400,000 required: calculate the amount of interest capitalized for 2024.

Answers

The amount of interest capitalized for 2021 is $ 112,000.

If the question clarity is as in the explanation below.

Let's assume that $500,000 on January 1 equals $500,000 in spending.

and March 1600 means that the spending for March 1 is $ 600,000.

& July 31480,000 indicates that the spending for July 31 is $ 480,000.

& September 30600,000 denotes a $ 600,000 expenditure on September 30. December 31.

300,000 meaning the expense as of December 31 is $ 300,000.

Then use the IAS 23 borrowing cost principle for single funding with periodic withdrawal to get the cost capitalised;

Five hundred thousand dollars were drawn down on January 1.

(8% times $500,00x12/12) Equals $40,00 in borrowing costs

Six hundred thousand dollars were taken out on March 1.

(8% × 600,000 X 11/12) = $44,000 in borrowing costs

Four hundred eighty thousand dollars were taken out on July 31.

(8% x 480,00 X 5/12) = $16,000 in borrowing costs

Six hundred thousand dollars were taken in on September 30.

(8% x 600,000 X 3/12) = $12,000 in borrowing costs

Dec. 1 brought in $300,000.

(8% x 300,000 X 0/12) Equals $0 in borrowing costs

$112,000 will be the total capitalised interest in 2021.

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Which of the following is an Internet job search “do”?
a.
Post your résumé without considering your privacy
b.
Pay attention to all directions before responding to job postings
c.
Assume that e-mail is informal, private, or temporary
d.
Take a passive role during your online job search

Answers

The option that corresponds to an Internet job search “do” is alternative b. Pay attention to all instructions before responding to job postings.

Is it effective to look for a job on the internet?

Yes, because the internet is a means of mass communication capable of reaching a large number of people, so companies are increasingly interested in publicizing their vacancies through online platforms, such as job sites and professional social media, such as the linkedin.

It is essential that the candidate identifies the vacancy he wants to apply for and analyzes the essential information, such as the company, field of activity, level of experience and education required for the vacancy, and fills it out correctly to have his application validated.

Therefore, looking for a job through the internet is an effective, objective and fast way to identify vacancies aligned with your professional profile, and the candidate must analyze the instructions to compete for real vacancies that can evolve to the achievement of a position in the job market.

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suppose that belham company's fixed administrative costs increased to $50,000. what is the new break-even point in units? fill in the blank 1 of 1$ how many units must be sold to earn operating income of $14,300? fill in the blank 1 of 1$

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if the fixed administrative expenditures for the Belham Company rose to $50,000.  [tex]\frac{1}{37500}[/tex]represents the updated break-even point in units.

Fixed costs: costs like rent that are unrelated to sales volume, that $1

Variable costs: costs like the cost of producing the goods that are based on a sales volume of $14,300

The item has a retail price.

Breakeven Point in Units defines as,

=  [tex]\frac{Fixed Costs}{(Price - Variable Costs) }[/tex]

The entire fixed costs divided by the difference between the unit price and variable costs yield the breakeven threshold, in other words. It should be noted that in this method, price and variable costs are expressed as per-unit expenses, or the cost of each sold unit of a product, while fixed costs are expressed as the firm's total overhead.

∴ [tex]\frac{1}{50,000-14,300}[/tex]

= [tex]\frac{1}{37500}[/tex]

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a state government establishes an investment pool and invites local governments to participate. it is not governed by a formal trust agreement. which fund of the state government would report balances contributed by the local governments?

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The custodial fund of the state government would report balances contributed by the local governments.

Fiduciary operations that are not required to be recorded in pension (and another employee benefit) trust funds or private-purpose trust funds are reported using custodial funds. In contrast to a Private Purpose Trust fund, Custodial Funds do not have a formal trust agreement.

Custodial funds are sums that a government holds on behalf of another government in order to bill and collect taxes and/or fees. The inflow and outflow of these collections have often been recorded in a general fund or agency fund's balance sheet accounts.

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a farm is able to produce 9,000 pints of strawberries per season on 10 acres. it adds one more acre and is able to produce 12,000 pints per season. the marginal product of land for this farm is: group of answer choices 900 pints per acre per year. 3,000 pints per acre per year. 1,000 pints per acre per year. 12,000 pints per acre per year.

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From the given information, the marginal product of land for this farm is 3,000 pints per acre per year.  

Y = %u0394Y ÷ %u0394X = (the change of Y) ÷ (the change of X).

Y = (12000-9000) ÷ (11-10)

Y = 3000

The marginal product or marginal physical productivity of an input (factor of production) in economics, and especially in neoclassical economics, is the change in output that results from using one more unit of a specific input (for example, the change in output when a firm's labour is increased from five to six units), assuming that the quantities of other inputs are kept constant.According to the "law" of decreasing marginal returns, the marginal output initially rises as more of one input, like labour, is used while maintaining the same level of the other input, like capital. Labor is the variable input in this case while capital is the fixed input (in a hypothetical two-inputs model). The marginal product decreases as labour, a variable input, is used more frequently.

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fieldman corp. obtained the following information from its accounting records: sales $35,000 beginning finished goods inventory $12,000 ending finished goods inventory $9,000 cost of goods sold $20,000 the cost of goods manufactured this period equals:

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The cost of the commodities produced over this time period is $17,000.

The entire manufacturing expenses for items that are completed during a certain accounting period are the cost of goods manufactured. These expenses cover the direct labor, direct materials, and manufacturing overhead for the goods that are moved from the production line to the completed goods stock.

Finished goods, beginning inventory = $12,000

Less Finished goods, ending inventory = $9,000

Cost of goods sold = $20,000

Cost of Products Offered for Sale = Expense for Goods Sold + Finished Goods Inventory Closing

= $20,000 + $9,000

= $29,000

Cost of Producing Goods = Price of Goods Available for Sale - Initial Inventory of Finished Goods

= $29,000 - $12,000

= $17,000

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which of the following is true of optional-product pricing? it involves capitalizing on low value by-products. it involves pricing products that can be added to the base product. it is used to price a company's main product. it involves setting geographically-specific prices. it is used to price products that must be used with the company's main product.

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The pricing of alternative products comprises priced items that can be added to the base item.

An alternative pricing system, which differs from individual price marking in that it frees the store from the obligation for individual price marking, is one that is intended to inform consumers of the price of specific products.

Optional-product planning is a pricing strategy in which the producer entices customers by offering a low price that occasionally even falls below their cost price. However, these goods cannot be properly employed on their own or in their current form. They need accouterments.

The business anticipates making up the loss here. They attempt to recover the cost when you purchase the accessories after charging a low price for the primary product. Printers and ink would be an example. The accessories must be priced so that the business avoids losses because this is a risky manner of marketing.

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american call and put premiums multiple choice should be no larger than their speculative value. should be at least as large as their intrinsic value. should be exactly equal to their time value. should be no larger than their intrinsic value.

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Americans call and put premiums should be at least as large as their intrinsic value.

In finance, the intrinsic value of an asset usually refers to its value based on simplified assumptions. For example, the intrinsic value of an option is based on the current market value of the underlying asset, while ignoring possible future fluctuations and the time value of money

The intrinsic value of an asset is based on cash flows. Measure value. Market value indicates the price others are willing to pay for an asset, whereas intrinsic value indicates the value of an asset based on an analysis of its actual financial performance.

Intrinsic value is a way of describing the perceived or true value of an asset. This is not always the same as the current market price as the asset may be overvalued or undervalued. Intrinsic value is a common part of fundamental analysis that investors use to price stocks and options.

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high-volume purchases that are important to your operations would be considered what kind of buy? a. routine b. critical c. leverage d bottleneck e. none of the above

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high-volume purchases that are important to your operations would be considered as critical buy.

What are the kinds of buy?There are four different forms of consumer behavior: complex buying behavior, dissonance reduction, variety seeking, and habitual buying behavior. There are three different corporate purchasing scenarios to take into account. They are new buy, modified rebuy, and direct rebuy. First, it's important to recognize that there are three primary categories of consumers: average spenders, spendthrifts, and tightwads. The labels are probably sufficient explanation, but let me to delve a little deeper so you can see how these three buyer types might affect your marketing strategies.There are five fundamental steps in the decision-making process for consumers. Consumers use this technique to weigh their options before making a purchase. Problem identification, information search, alternative assessment, buy decision, and post-purchase evaluation are the five steps.

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school taxes for a local district are 2.5% of a household's income. if a household earns $80,000 per year, how much do they pay in school taxes per year?

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They pay in school taxes per year $2000.

What is a tax?A tax is a mandatory fee or financial burden that a government imposes on an individual or organization to collect revenues for public works that provide the best facilities and infrastructure. The funds raised will be used to fund various public spending programs.The primary purpose of the levy is to generate income for services and income that meet community needs.Public revenue should be sufficient for this purpose.The amount that the government charges people according to their income, the value of their property, etc., and is used to pay for what the government does.Taxes are very important because the government collects this money to fund social projects. Without tax, government contributions to the health sector are impossible. Tax are used to fund health services such as social care, medical research, and social security.

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In a market without prices, where goods are allocated by a central planner, which is likely to happen?.

Answers

In a market without prices, where goods are allocated by a central planner, then the prices will be centralized which will benefit the consumer.

In a free-market economy, assets are apportioned by costs. In this way, a showcase economy is self-regulating, permitting real-time coordination over millions of products and administrations, without any central authority knowing and setting all the costs.

The foremost clear way to designate assets over an economy is for a central authority to choose what to do. In a medieval economy, the ruler tells individuals what to develop and how to offer it.

The Soviet Union worked essentially, with the government deciding how much steel to deliver in Bulgaria and how much wheat to be developed in Ukraine.

These exchange costs have swell impacts all through the economy, with one cost in one division being transmitted to related divisions consequently, without passing through any central specialist. These costs decide how much of each asset gets utilized where.

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volker company signs a 3-month, $10,000 note. stated interest rate is 12% payable at the maturity date. interest incurred on the note is: multiple choice question.

Answers

Volker Company agrees to a three-month, $10,000 note. The stated interest rate is 12%, payable at maturity. The interest on the note is $300, calculated as $10,000 x 0.12 x 3/12.

An interest rate is the rate at which interest is charged by a lender, typically expressed as a percentage of the principal loan amount. Interest rates can be fixed or variable, and they can vary based on the type of loan, the term of the loan, and what is payable.

The interest rate maturity is the amount of time that interest rates will remain fixed on a loan. The maturity can be any length of time, but is typically five to seven years for most loans.

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how does the market system answer the following fundamental question: how will the goods and services be produced? multiple choice in combinations that take advantage of related markets. in ways that minimize the cost per unit of output. by using labor and capital accumulation. by using traditional methods of production.

Answers

The market system answers the fundamental question of how goods and services will be produced in ways that minimize the cost per unit of output.

What is market system?
This article requires more citations for verification. Please help this article by including citations to credible sources. Material that is unsourced might well be challenged and removed. A market system (or industry ecosystem) is any methodical process that allows many market participants to give and demand: facilitating buyer-seller interactions and transactions. It is not just the price mechanism that operates in a social context, but the entire system of regulation, qualifier, credentials, reputations, and clearing that surrounds it. Some authors use the phrase "market system" to refer to the free market system specifically. This article focuses on a more general meaning of the term, in which there are various market systems. Market systems are not the same as voting systems.

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when an organization deliberately prices a product above the prices set for competing products, to entice those customers for whom pricing doesn't matter, the firm is engaging in

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A pricing strategy known as predatory pricing is undercutting the competition for an extended period of time in order to drive them out of the market. Other providers are forced to leave the market because they are unable to compete when prices are set below costs.

Predatory Pricing: What Is It?Setting prices artificially low in an effort to drive out competitors is known as predatory pricing.Antitrust rules are broken by predatory pricing because it leaves markets more open to monopolies. However, accusations of this technique can be challenging to prove because defendants may be successful in arguing that price reductions are a natural result of competition rather than a calculated effort to weaken the market. Furthermore, due to the challenges in recovering lost revenue and effectively removing competitors, predatory pricing doesn't always achieve its purpose.The practice of predatory pricing involves a vendor setting a price so low that other suppliers are unable to compete and are compelled to leave the market. When a business does this, it first loses money, but over time, it gains because it eliminates rivals from the market and may raise prices once more.

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what does fob shipping point mean? multiple choice question. goods are owned by the buyer when they leave the seller's place of business. goods are owned by the buyer as soon as they arrive at the buyer's place of business. goods are owned by the buyer as soon as the sales contract is signed.

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A) When goods leave the seller's place of business, the buyer acquires ownership of them.

What is the FOB shipping point?

"Free on board" is referred to as FOB in shipping. If a shipment is marked FOB (the seller's location), the seller records the sale as complete as soon as the shipment of goods leaves the seller's warehouse.

The products are the buyer's property while they are being delivered to its warehouse, and any delivery fees are the buyer's responsibility. Additionally, since the shipment became the buyer's responsibility right away, the buyer, and not the seller, must submit any claims for reimbursement if a pallet of jewelry is lost or damaged during shipment.

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a person has $3000 to deposit in a financial institution. assuming all options were offered by the same institution, which account is likely to have the lowest interest rate or pay no interest at all? savings account checking account money market account three-year certificate of deposit

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The account that is likely to pay the least interest rate will be the Checking Account. So, Option B is the correct answer.

A Checking Account is a type of bank account that allows easily deposit of funds and withdrawal of money easily. The funds can be deposited using cheques and withdrawn easily using a debit card or setting up direct deposits. These types of accounts are mostly liquid bank accounts.

The funds are accessible easily. And there is unlimited withdrawal and deposits but have a limit set for daily transaction. The primary use of these types of accounts is to hold money in a safe place for a short period of time and then it can be easily accessible when needed.

A checking account generally provides a lower interest rate as compared to a savings, money market, or certificate of deposit, and therefore checking accounts should not be used for a long-term investment.

Hence, Option B is the correct answer.

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