What are some issues to consider when determining a specific price?
What will be an ideal response?
A pricing strategy will yield a certain price or range of prices, which is the final step in the pricing process. However, marketers may need to refine this price in order to make it consistent with circumstances, such as a sluggish economy, and with pricing practices in a particular market or industry. Pricing strategies should help a firm in setting a final price. If they are to do so, marketers must establish pricing objectives, have considerable knowledge about target market customers, and determine demand, price elasticity, costs, and competitive factors. The way marketers use pricing in the marketing mix will also affect the final price.
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The last item on the statement of cash flows prior to the schedule of noncash investing and financing activitiesreports
a. the increase or decrease in cash b. cash at the end of the year c. net cash flow from investing activities d. net cash flow from financing activities
The owner of 500 shares of stock of a corporation with 25,000 shares of stock outstanding has a 2% interest in the total stockholders' equity. If a 20% stock dividend is declared and distributed, that stockholder would own which of the following number of shares?
a. 500; b. 525; c. 550; d. 600; e. 5,000
Advertisements are considered to be invitations to make an offer
Indicate whether the statement is true or false
FYI bonds have a par value of $1,000. The bonds pay $40 in interest every six months and will mature in 10
years. a. Calculate the price if the yield to maturity on the bonds is 7, 8, and 9 percent, respectively. b. Explain the impact on price if the required rate of return decreases. c. Compute the coupon rate on the bonds. How does the relationship between the coupon rate and the yield to maturity determine how a bond's price will compare to it par value?