Microsoft Wants to Calculate the Effect of a Worldwide 5

question 31

Multiple Choice

Microsoft wants to calculate the effect of a worldwide 5% price cut on its sales of Excel to clients in different countries. Microsoft sells Excel at different prices in U.S., Japan and Europe. Before the price cut U.S. sales were twice sales in Japan and Europe. If the price of elasticity of demand in the U.S., Japan and Europe are -3, -4, and -2 respectively, the worldwide sales rise by

• A) 10%.
• B) 15%.
• C) 20%.
• D) 25%.
• E) none of the above

Understand the concepts and calculation methods of dividend yield.

Grasp the relationship between par value, offering price, and capital in excess of par.

Identify the characteristics and advantages of different types of stocks, including preferred and common stocks.

Differentiate between various market values and their implications for stock and bond trading.

---

Definitions:

Dimethyl Ether

A colorless gas used as a propellant, refrigerant, and solvent, composed of two methyl groups bonded to an oxygen atom.

3-Ethylfuran

A heterocyclic organic compound with the formula C6H8O, featuring a furan ring with an ethyl substituent.

4,4-Dimethylpyran

A six-membered oxygen-containing heterocycle with two methyl groups attached to the fourth carbon.

Ethers

A class of organic compounds containing an oxygen atom connected to two alkyl or aryl groups.