Use the Information Below to Answer the Following Questions

question 26

Multiple Choice

Use the information below to answer the following questions:
On 1 January 2012, Sky-High Ltd acquired 100 000 shares (30% of the voting interest) in Down Ltd for $600 000 cash. On 30 June 2012, Down Ltd announced its earnings per share for the first 6 months of 2012 at $1.50 per share. On 20 November, Down Ltd paid dividends to shareholders at $0.90 per share. On 31 December 2012, Down Ltd announced its earnings per share for 2012 at $2.80 per share (i.e., $1.30 additional since 30 June) .
-If Sky-High Ltd used the cost basis,what dividend revenue did it record for the year ended 31 December 2012 in respect of its investment in Down Ltd?

• A) nil
• B) $90 000
• C) $190 000
• D) $280 000.

Differentiate between a market and a target market with examples.

Recognize personal experiences and perspectives as valuable in understanding marketing concepts.

Explain the concept of exchange in marketing beyond mere monetary transactions.

Describe target markets for specific products and services, emphasizing the importance of market segmentation.

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Definitions:

Acquisition Fees

Fees associated with the process of acquiring another company, such as legal, consulting, and accounting fees.

Cost Basis

The original value of an asset for tax purposes, usually the purchase price, which is used to calculate capital gains or losses.

Brokerage Commission

Brokerage Commission is the fee charged by a brokerage firm for facilitating transactions between buyers and sellers in financial markets.

Outdoor Parking

An uncovered parking area designated for vehicles, typically without a roof or enclosure.