"The major concept underlying the current rate method is that the entire foreign investment is exposed to foreign exchange risk. Therefore, all assets and liabilities are translated at the current exchange rate. Balance sheet exposure under this concept is equal to the net investment. The major concept underlying the temporal method is that the translation process should result in a set of translated U.S. dollar financial statements as if the foreign subsidiary’s transactions had actually been carried out using U.S. dollars. To achieve this objective, assets carried at historical cost and stockholders’ equity are translated at historical exchange rates; assets carried at current value and liabilities (carried at current value) are translated at the current exchange rate. Under this concept, the foreign subsidiary’s monetary assets and liabilities are considered to be foreign currency cash, receivables, and payables of the parent that are exposed to transaction risk. For example, if the foreign currency appreciates, then the foreign currency receivables increase in U.S. dollar value and a gain is recognized. Balance sheet exposure under the temporal method is analogous to the net transaction exposure that exists from having both receivables and payables in a particular foreign currency."Some experts criticized that any method for translation of foreign financial statements is misleading. One of the reasons they put forth was that exchange rates were often politically controlled, therefore distorting the true economic value. Do you agree?

Answers

Answer 1

Yes, I agree that exchange rates are often politically controlled and this can distort the true economic value of foreign financial statements.

This is because when the exchange rates are artificially controlled by the government, the financial statements may not accurately represent the economic value of the foreign subsidiary.

The current rate and temporal methods of translation both rely on exchange rates to convert the financial statements into U.S. dollar equivalents.

As such, if the exchange rates are artificially controlled, the true economic value of the foreign financial statements will not be accurately reflected in the U.S. dollar translation.

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Related Questions

a list of prospects regularly contacted by an agent in the hopes of making them clients is called a: group of answer choices harassment suit waiting to happen. family tree. circle of last resort. sphere of influence.

Answers

A list of prospects regularly contacted by an agent in the hopes of making them clients is called a sphere of influence.

A sphere of influence is a group of people that an agent connects with on a regular basis to create new business or enhance existing business relationships. They are frequently categorized as contacts who have a meaningful connection with the agent or a relationship built over time.Because most agents' spheres of influence are made up of individuals they already know, these groups tend to be easier to engage with and persuade than strangers. Agents may regularly connect with people in their sphere of influence via telephone, email, social media, or in-person visits to discuss industry topics, local news, and personal updates. The sphere of influence is a crucial component of any sales or marketing plan, as it allows an agent to create valuable relationships with individuals who are most likely to refer new business or require the agent's services in the future

A sphere of influence is a group of individuals with whom an agent connects on a regular basis to establish new business or enhance existing business relationships. It is critical for agents to maintain strong relationships with their sphere of influence since they are most likely to refer new business or use the agent's services in the future.

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True or False: Nonemployee share-based payment equity awards are
measured at fair value on the date such awards vest and are
recorded as an expense based upon that valuation.

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Nonemployee share-based payment equity awards are measured at fair value on the date such awards vest and are recorded as an expense based upon that valuation is True.

Share-based payment equity awards are a type of compensation that a business provides to its workers or vendors using shares of the company's stock.

These awards can take different forms, such as stock options, restricted stock units, or phantom stock plans.

The purpose of these awards is usually to incentivize employees to work harder to achieve better financial results for the company.

Non-employee share-based payment equity awards are awards given to people who are not regular employees of the company, but who provide services to the company in a temporary or consulting capacity.

Examples of non-employees include suppliers, contractors, or freelance workers.

The value of these awards must be estimated and recorded according to the fair value principle, which means that the value of the award is based on the current market value of the company's stock on the date the award is vested.

The expense of these awards is recorded based on the fair value of the award on the vesting date, which is the date when the recipient becomes entitled to receive the award.

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Which of the following statements regarding perpetuities is FALSE? One example of a perpetuity is the British government bond called a consol. A perpetuity is a stream of equal cash flows that occurs at regular intervals and lasts forever. PV of a perpetuity = r/C To find the value of a perpetuity by discounting one cash flow at a time would take forever.

Answers

The statement that is FALSE regarding perpetuities is "PV of a perpetuity = r/C." The correct formula for the present value (PV) of a perpetuity is PV = C/r, where C is the constant cash flow and r is the discount rate.

This formula is derived from the fact that the present value of a perpetuity is equal to the sum of the present values of each individual cash flow, which can be represented as an infinite geometric series. By rearranging the terms and simplifying, we can arrive at the formula PV = C/r.

Therefore, the correct answer is "PV of a perpetuity = r/C" is the false statement regarding perpetuities.

The other statements, including that a perpetuity is a stream of equal cash flows that occurs at regular intervals and lasts forever, that one example of a perpetuity is the British government bond called a consol, and that to find the value of a perpetuity by discounting one cash flow at a time would take forever, are all true.

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Focused on one of the most critical functions in building generic products into megabrands such as Toyota, Yamaha, Coca-Cola, Pirelli, Casio, Panasonic, Mobil, and Marlboro among others that have outlived generations of consumers.
Search and share the hidden secrets and rationale for their perceived success stories. Having gone through this Week’s resource, please search the internet for more insights on the topic. Reflect on your understanding of Advertising Management and prepare a 500 words for discussion with a set of Trainees in your Department.

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The success of mega brands such as Toyota, Yamaha, Coca-Cola, Pirelli, Casio, Panasonic, Mobil, and Marlboro is attributed to their effective advertising strategies. They have been able to create a strong brand image, understand their target audience, innovate, maintain quality, create an emotional appeal, and have a strong distribution network

Advertising management is focused on creating and delivering messages to target audiences with the aim of creating awareness and driving consumer behaviour. These companies have been able to create lasting consumer relationships by effectively marketing their products through advertising strategies, campaigns and promotions. These brands have been able to create a strong brand image and recognition among their target consumers, which has helped them in establishing a loyal customer base.

Some of the hidden secrets and rationale behind the success of these brands are as follows:

1. Understanding the target audience: One of the critical factors for the success of these brands is their ability to understand their target audience. They have identified their customers' needs, wants, preferences, and behavior, which has helped them in creating products that cater to their requirements.

2. Consistency in messaging: These brands have been consistent in their messaging, which has helped in creating brand awareness among their target audience. Their advertising campaigns have a consistent message, which has helped in creating a strong brand identity.

3. Innovation: These brands have been able to innovate and create products that are unique and different from their competitors. This has helped in creating a competitive advantage, which has contributed to their success.

4. Emotional appeal: These brands have been able to create an emotional appeal among their target audience. They have been successful in creating an emotional connection with their customers, which has helped in creating brand loyalty.

5. Quality: These brands have been able to maintain the quality of their products consistently. They have a reputation for delivering high-quality products, which has helped in establishing brand loyalty among their customers.

6. Strong distribution network: These brands have a strong distribution network, which has helped them in reaching their target audience effectively. They have been able to penetrate into different markets, which has contributed to their success.

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how is the change in account receivables treated in thestatement of cash flows using the indirect method. explain why thisis so ? be specific

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Change in Account Receivables is treated in the statement of cash flows using the indirect method by adding or deducting it from the net income. It is added if there is a decrease in account receivables, and it is deducted if there is an increase in account receivables.

Why is this so?

The cash flow statement gives information about the company's sources and uses of cash. It shows how the cash balance changed from the beginning of the period to the end of the period. It consists of three sections - operating activities, investing activities, and financing activities.

The change in account receivables has a direct impact on cash. When a sale is made, the company increases its account receivables balance. If the customer pays in cash, the account receivable balance decreases, and cash increases.

Similarly, if the customer pays with credit, account receivable increases, and cash remains the same.

Therefore, to accurately show the changes in cash, it is important to adjust the net income for the changes in account receivables. The indirect method is used to calculate cash flows from operating activities.

In this method, net income is adjusted for non-cash items such as depreciation, gain/loss on sale of assets, etc. The change in account receivables is also adjusted in this method.

A decrease in account receivables means that customers have paid their outstanding balance during the period, which has increased the cash balance.

Therefore, it is added to the net income to calculate cash flow from operating activities. On the other hand, an increase in account receivables means that the company has not received payment for sales made during the period.

This means that cash balance has decreased, and therefore the increase in account receivables is deducted from the net income to calculate cash flow from operating activities.

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in an experiment, which of the following variables would probably not be the dependent variable? market share total sales percent increase in market penetration advertising all of these would probably be dependent variables.

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It is impossible to ascertain which variable would not be a dependent variable in an experiment without knowing the independent variable.

When examining the relationship between two variables in a study, it is critical to understand which variable is the independent variable and which is the dependent variable.

In any experiment, there must be at least two variables: the independent variable (the one that causes the change) and the dependent variable (the one that is affected by the change).

As a question answering bot, I am not capable of determining what the independent variable is or what the experiment is attempting to investigate. Nonetheless, it is certain that at least one of the variables in the question, whether it's market share, total sales, percent increase in market penetration, or advertising, is a dependent variable

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lois worked for champion auto retailer and was laid off when car sales fell during a recession with falling incomes. this is an example of frictional unemployment. seasonal unemployment. structural unemployment. cyclical unemployment.

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Lois worked for Champion Auto Retailer and was laid off when car sales fell during a recession with falling incomes. This is an example of cyclical unemployment. Cyclical unemployment is a type of unemployment that is caused by changes in the economy's cyclical nature.

This is a type of unemployment that is influenced by the growth and contraction of the economy. For example, cyclical unemployment occurs when the economy enters a recession or downturn and companies are forced to lay off employees. Cyclical unemployment occurs when there are not enough jobs to go around, which means that people are unemployed due to the business cycle's fluctuations.

This type of unemployment is largely influenced by macroeconomic factors such as economic recessions, downturns, and business cycle fluctuations. Cyclical unemployment occurs as a result of the labor market's periodic fluctuations.

As a result, the employees who are laid off due to these factors are referred to as "cyclical unemployed."Lois worked for Champion Auto Retailer and was laid off when car sales fell during a recession with falling incomes. This is an example of cyclical unemployment because it is influenced by economic fluctuations, as well as changes in the labor market due to the cyclic nature of the economy.

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6. Finding the interest rate and the number of years
The future value and present value equations also help in finding the interest rate and the number of years that correspond to present and future value calculations.
If a security currently worth $2,000 will be worth $3,524.68 five years in the future, what is the implied interest rate the investor will earn on the security-assuming that no additional deposits or withdrawals are made?
O 12.00%
O 1.76%
O 5.67%
O 9.60%

Answers

The implied interest rate the investor can earn on the security is 12% (option 1)

What is the implied interest rate?

The implied interest rate can be determined by calculated using the financial calculator. The discounted value of the cash flow in five years should be equal to the present value of $2000.

$2000 = [tex]\frac{3,524.68}{(1 + r)^{5} }[/tex]

Where r = implied interest rate

A financial calculator would be used to determine the value of r

Cash flow in year 0 = -2000

Cash flow each year from year 1 to 4 = 0

Cash flow in year 5 = 3,524.68

IRR / implied interest rate = 12%

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FASB codification provides in one place all the authoritative
literature related to a particular topic.
Group of answer choices
True
False

Answers

The statement "FASB codification provides in one place all the authoritative literature related to a particular topic" is true because all accounting standards must be included in the Codification once they are established by FASB.

The Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) is a source of US GAAP that is authoritative. The Codification is an electronic database of accounting standards, guidance, and interpretations created by FASB, and it organizes the US GAAP into a single, comprehensive database. Moreover, it provides all of the authoritative guidance for a specific topic in one location, making it simple to find relevant information.

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The four generic business strategies are generated by comparing the strategic position with the scope of competition. Tesla, an electric car manufacturer, is presented in the text as fitting into which of these categories?Multiple Choiceintegrationfocused cost leadershipdifferentiationfocused differentiationcost leadership within electric vehicles

Answers

Tesla is into focused differentiation, as they aim to create unique electric vehicles with innovative designs and features for specific market segment.

Tesla fits into the focused differentiation category of the four generic business strategies. This is because Tesla focuses on a specific market segment, electric vehicles, and differentiates itself from competitors by offering unique features and technology.

Tesla's focus on innovation and sustainability sets it apart from other car manufacturers and allows it to charge a premium price for its products.

Therefore, Tesla, an electric car manufacturer, is presented in the text as fitting into focused differentiation categories.

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when it comes to practice management positions, individuals who are typically responsible for all activities of the practice and run the hospital in conjunction with the practice's owner(s) would be referred to as the

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In the field of medical administration, individuals who are typically responsible for all activities of the practice and run the hospital in conjunction with the practice's owner(s) would be referred to as the Practice manager.

A practice manager is a medical administrator who handles the daily operations of a medical practice. The position entails supervising, hiring, and training staff members, overseeing billing and coding, and ensuring that the practice is compliant with legal and regulatory requirements.The practice manager is in charge of all the activities in the medical office, as well as ensuring that the office is running efficiently. This person is responsible for the staff, office policies and procedures, medical billing, and general office operations.The practice manager is the go-to person for the doctors when they have questions about medical policies and procedures.

The practice manager is also in charge of budgeting and keeping track of the office's financial performance. The practice manager will be accountable for all patient interactions and patient satisfaction with the services offered by the practice. They will also handle all personnel-related activities within the practice.The practice manager is also the person who works with the practice's owner(s) to create a long-term strategy for the practice. They develop and implement policies and procedures that support the mission of the practice and ensure that the practice remains competitive in the industry. They also identify areas of improvement and work to ensure that they are implemented.

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Our current distribution center (DC) is closing.
Demand for twelve months
City
Demand
1. Amarillo
3700
2. Austin
1200
3. Brownsville
7800
4. Lubbock
3400
5. Dallas
9600
6. Fort Worth
700
7. Waco
800
8. Houston
2100
9. Galveston
1400
10. Corpus Christi
7100
11. S. Padre Island
7700
12. Laredo
3400
13. San Antonio
3000
14. El Paso
8500
15. Odessa
4200
16. Midland
1200
1. identify two new possible locations for distribution centers.

Answers

The following two potential new locations for distribution facilities might be determined from the demand data: San Angel and McAllen.

San Angelo: Because to its strategic position in West Texas, San Angelo offers quick access to a number of highly populated areas, including Lubbock, Midland, and Odessa. It is also close to important thoroughfares like I-10 and US-87, which may make it easier to travel to other regions of the state.
McAllen: Situated in the far south of Texas, McAllen offers quick access to populous areas like Brownsville, Corpus Christi, and Laredo. Its proximity to the US-Mexico border may make it easier to distribute and sell goods internationally. Of course, there may be more elements to take into account, such as the supply of land, manpower, and transportation infrastructure. To find the best locations for the new distribution facilities, a thorough investigation would be required.

What is distribution centres?

Businesses employ distribution centres (DCs) as places to store and ship goods to clients. It is a crucial link in the supply chain and acts as a hub for the receiving, storing, and shipping of goods from producers or suppliers to merchants, distributors, or end users.
Large storage capacities are prevalent in distribution centres, which make optimal use of cutting-edge technology including conveyor systems, automated storage and retrieval systems, and warehouse management systems. To maintain efficient operations, they also hire a range of staff, including warehouse employees, inventory managers, and logistics coordinators.
The location of a distribution centre is crucial since it can affect supply chain efficiency overall, delivery times, and transportation costs. To provide better customer service and cut shipping costs, businesses may decide to set up numerous distribution centres in advantageous locations.

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The company is contemplating the lease of a diagnostic scanner. The scanner cost is $5.2 million and would be depreciated in 4 years. Because of radiation contamination it will be valueless for 4 years. You can lease it for $1.51 million per year for 4 years. Assume that the tax rate is 21%, you can borrow at 8% before taxes, should you lease or buy?

Answers

Leasing the diagnostic scanner would be the better option in this situation.

The cost of the scanner is $5.2 million, and it would be depreciated in 4 years with no value remaining after 4 years due to radiation contamination. Leasing the scanner would cost $1.51 million per year for 4 years, which is less than the upfront cost of purchasing the scanner.

Additionally, the tax rate of 21% would reduce the amount of cash available for purchasing the scanner. Lastly, the 8% borrowing rate before taxes is greater than the cost of leasing the scanner, making it more expensive to purchase the scanner. Therefore, leasing the diagnostic scanner would be the more cost-effective and financially wise option.

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According to TQM philosophy, who is responsible for defining what constitutes quality for a product or service

Answers

Answer: Customers

Explanation: the customers not the quality control engineers are responsible for defining quality for a product.

when a company purchases another business that does something similar to what the purchasing company does, the purchasing company is using a strategy ofrelated diversification .

Answers

Yes, you are correct. When a company purchases another business that does something similar to what the purchasing company does, the purchasing company is using a strategy of related diversification.

Related diversification is a strategy that involves a company expanding its business operations into a new industry that is similar to its existing industry. This is done in order to increase the company's profitability and reduce its overall risk. By purchasing another business in a similar industry, the company is able to leverage its existing expertise and resources to create economies of scale and increase its competitive advantage.

For example, if a company that specializes in making shoes decides to purchase a company that makes socks, this would be an example of related diversification. Both companies operate in the apparel industry, and the purchasing company can use its existing knowledge and resources to improve the operations of the sock company, leading to increased profitability for both businesses.

In conclusion, related diversification is a strategic approach used by companies to expand their business operations into similar industries in order to increase profitability and reduce risk.

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what is the effect of foreign students attending college in the united states on the u.s. balance of payments? foreign students attending u.s. universities

Answers

According to the U.S. Department of Commerce, foreign students made $45 billion in economic contributions to the United States in 2018.

Why do universities require students from abroad?

The diversity of experience is one of them, and geographic diversity is another. They wish to hire overseas students for both of these main causes. Students with a variety of backgrounds can bring new ideas to the classroom and actively participate in group discussions.

What advantages do foreign students provide to the American economy?

The continued growth in international students coming to the U.S. for higher education had a significant positive economic impact on the United States. According to the U.S. Department of Commerce, foreign students made $45 billion in economic contributions to the United States in 2018.

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home health manufactures medical supplies. for the month of april, it projects the following selling and administrative expenses: sales commissions: 8% of sales shipping expense: $12,800 advertising and marketing costs payable next month: $4,200 electric and water utilities: $1,900 equipment depreciation: $18,700 bad debt expense: $3,000. sales for the month of april equal $694,000. what is the total of cash costs that will be reported on the cash budget?

Answers

$644,684 is the total cash costs that will be reported on the cash budget for home health manufactures medical supplies.

Cash costs are costs that must be paid in cash. To calculate cash costs, you need to add the following costs:

Administrative expenses: Sales commission is 8% of sales $694,000 x 8% = $55,520

Sales shipping expense: $12,800Advertising and marketing: $0

Electric and water utilities: $1,900Equipment depreciation: $18,700

Bad debt expense: $3,000

The sum of the administrative expenses is $91,920.

Costs payable is payable next month.

As a result, it is not included in cash costs.

Cash costs equal:

Sales: $694,000

Administrative expenses: $91,920

Total cash costs = $785,920 - $141,236 = $644,684

Therefore, the total cash costs that will be reported on the cash budget are $644,684.

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up to now your success has been based on selling high-quality fast food at an affordable price that others can't match. your business is pursuing which competitive strategy?

Answers

The business in question is pursuing a cost leadership strategy as it is selling high-quality fast food at an affordable price that others cannot match. A cost leadership strategy is a business approach in which a business provides products or services at a lower cost than its competitors.

This approach necessitates reducing costs while maintaining a reasonable level of quality in order to keep prices low and attract price-sensitive customers. The following are the characteristics of a cost leadership strategy:

Making products or services less expensive than those of rivals by lowering costs in some way (e.g. reducing costs of raw materials or using less costly methods of production).Offering products or services that are of similar quality to those of rivals, or cutting back on non-essential features.Providing goods or services at a lower price than competitors.Focusing on producing a large number of products or services.Using automation to lower costs and increase efficiency.Hiring and developing a low-cost labor force.

Examples of firms that use cost leadership strategies are Walmart, Southwest Airlines, and McDonald’s. They achieve cost leadership through a range of approaches such as using low-cost raw materials, providing standardized products, and economies of scale.

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As a rule, a system should pay for itself and return an
appropriate profit within , because after
that the time the system will usually need major enhancements or
reworking.

Answers

As a rule, a system should pay for itself and return an appropriate profit within 2-3 years because after that the time the system will usually need major enhancements or reworking.

A system refers to a collection or set of entities, physical or conceptual, that are grouped together for a common purpose. It is used to reduce complexity by breaking down the components of a process or project into smaller, more manageable chunks.  

To determine whether a system is generating enough profit, businesses may use different financial metrics to evaluate their investments. The Return on Investment (ROI) metric is one of the most widely used. The ROI of a system is calculated by dividing the profit generated by the initial investment or the cost of creating and installing the system. Businesses usually prefer a system with a higher ROI, which demonstrates that their investment is paying off quickly.

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describe a time where you leveraged technology or system tools
toward getting a payrol/tax related matter to completion

Answers

The last time I leveraged technology or system tools to get a payroll/tax related matter to completion was when I had to file my annual tax return.

I used an online tax filing system that was both user-friendly and secure.

I was able to accurately and quickly complete my tax return by inputting my data into the system and submitting it electronically. The system was able to provide me with detailed information on the process and potential savings that I could make through deductions.

After completing the return, I was able to receive an instant confirmation that my filing was successful. This helped me to get the payroll/tax related matter to completion quickly and easily.

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You are analyzing the issues of defective products being produced by an electronics line. The production line works 24/7 across three shifts. It produces 24,000 units per day. Based on this information, propose a sample size with conduct the analysis. Justify your choice.

Answers

A sample size that should be taken to conduct the analysis is 385 units.

In order to propose a sample size to conduct an analysis of the issues of defective products being produced by an electronics line, we need to take into consideration the population size and the level of confidence desired.

Sample size calculation

Population size = 24,000 units produced per day (production line works 24/7 across three shifts)

Level of confidence desired = 95%

Margin of error = 5%

Using the sample size calculator, we can calculate the sample size as follows:

Sample\ Size\ =\ Z^{2\ }*\ P\ *\ Q/E^2

where Z = Z-score (1.96 for 95% confidence interval), P = proportion of defective products (unknown), Q = (1 - P), and E = margin of error (0.05).

Since we do not know the proportion of defective products, we can assume it to be 0.5 for maximum sample size.

Sample\ Size\ =\ {1.96}^2\ *\ 0.5\ *\ 0.5/{0.5}^2

Sample size = 384.16 ≈ 385 (rounded up to nearest whole number)

Therefore, a sample size of 385 units should be taken to conduct the analysis. This sample size is justified because it is large enough to provide a representative sample of the population and ensure a high level of confidence while keeping the margin of error relatively low.

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A company named Nyopoly uses its Name-Your-Own-Price (NYOP) website to sell a variety of highquality merchandise, including clothing, shoes, jewelry, and handbags. Nyopoly has found that there is a lot of diversity across customers regarding their frequency of visits, bid levels, and retention rates. As a result, they have divided customers into five distinct segments: Bargain Hunters, Browsers, Bling Magnets, Gift Givers, and Sophisticates. The table below gives the expected annual monetary purchases ($), margin (%) and retention rate (%). Note, revenue is earned only on active customers (i.e., those who are retained from one year to the next). Bargain Hunters Browsers Gift Givers Bling Magnets Sophisticates Annual Purchases $100 $50 $100 $150 $300 Margin Earned 70% 35% 40% 25% 40% Retention Rate 30% 50% 60% 70% 60% 1) Use the Excel spreadsheet "CLV.xlsx" to calculate the expected Customer Lifetime Value for a representative customer from each of the five segments. For these calculations, use a 5-year time horizon and a 5% annual discount rate. (a) What is the Customer Lifetime Value for a Bargain Hunter? (b) What is the Customer Lifetime Value for a Browser? (c) What is the Customer Lifetime Value for a Gift Giver? (d) What is the Customer Lifetime Value for a Bling Magnet? (e) What is the Customer Lifetime Value for a Sophisticate? 2) Customers from some segments are more difficult to attract than others. The expected cost of obtaining a Bargain Hunter is $90. The expected cost of obtaining a Bling Magnet is $30. The expected cost of obtaining a Browser is $50. The expected cost of obtaining a Gift Giver is $75. The expected cost of obtaining a Sophisticate is $250. (a) For which customer segments does the CLV (calculated in question 1) exceed the acquisition cost? (b) Once acquisition costs are accounted for, which segment is the most profitable one for Nyopoly (in terms of Net Present Value)?f 3) Suppose Nyopoly is considering an extensive promotional campaign. This campaign will cost $60,000 and is expected to attract 500 new customers, which consists of 200 Bargain Hunters, 50 Bling Magnets, 150 Browsers, 25 Gift Givers and 75 Sophisticates. After incorporating information from Question (1), do you recommend that Nyopoly implement this promotional campaign? Explain your answer (including a discussion of the short-term (i.e., by the end of the first year) versus long-term (i.e., by the end of the fifth year) effects of this promotion)

Answers

The 500 new customers will bring in additional revenue for the promotional campaign in the near future (by the end of the first year). However, the short-term impact on profitability may be negative due to the fact that the CLV for some segments exceeds the acquisition cost.

What is Acquisition Cost?

A company's total cost to acquire a new asset or customer is known as its acquisition cost. This includes all costs, both direct and indirect, related to marketing, sales, and other efforts to acquire new customers. By dividing the total amount spent on customer acquisition by the number of new customers acquired during the same period, the acquisition cost can be calculated. It is a crucial metric for assessing a company's customer acquisition strategy's effectiveness and efficiency.

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rob mckinsey, the president of mckinsey inc. discovers that the functional structure of his company is becoming too awkward as mckinsey inc. grows in size and complexity, so it would be strategically reasonable to turn to

Answers

Rob McKinsey, the president of McKinsey Inc., discovers that the functional structure of his company is becoming too awkward as McKinsey Inc. grows in size and complexity, so it would be strategically reasonable to turn to matrix structure.

Since the functional structure A matrix structure is a hybrid organizational structure that combines the characteristics of both functional and projectized structures. It combines the strengths of the functional and projectized structures to achieve higher efficiency and productivity. The matrix structure aims to create a balance between the two structures and to overcome the weaknesses of both structures. As a result, it is best suited for complex and dynamic projects and organizations. Matrix structure advantages:

It promotes cross-functional cooperation and communication.It enables organizations to use their resources effectively.It increases flexibility and adaptability to changes.It helps to optimize the allocation of resources.It provides opportunities for employees to develop new skills and knowledge.It fosters innovation and creativity.It improves decision-making speed and accuracy.It enhances the quality of output.It reduces the duplication of work and costs.It increases job satisfaction and motivation.

Matrix structure disadvantages:

It can lead to conflicts and power struggles between managers.It can create confusion and ambiguity among employees.It can lead to role ambiguity and job stress among employees.It can create communication barriers between functional and project teams.It can create coordination problems and delays in decision-making.It can increase administrative costs and overheads.It requires highly skilled and motivated employees to work effectively.

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Suppose that your estimates of the possible one-year returns from investing in the common stock of the A. A. Eye-Eye Corporation were as follows: Return Probability -10% 0.1 -5% 0.2 0% 0.3 5% 0.4 What is the probability to get a profit more than 7%?

Answers

The probability to get a profit more than 7% will be 99.38%.

To determine the probability to get a profit more than 7% from the given estimates of the possible one-year returns from investing in the common stock of the A. A. Eye-Eye Corporation, let's calculate the expected value and the standard deviation:

Possible return = (-10%)(0.1) + (5%)(0.2) + (20%)(0.4) + (35%)(0.2) + (50%)(0.1) = 20%

Thus, the expected value of one-year returns from investing in the common stock of the A. A. Eye-Eye Corporation is 20%.

Possible return =  (-10% - 20%)²(0.1) + (5% - 20%)²(0.2) + (20% - 20%)²(0.4) + (35% - 20%)²(0.2) + (50% - 20%)²(0.1) = 26%

Thus, the standard deviation of one-year returns from investing in the common stock of the A. A. Eye-Eye Corporation is the square root of 26% = 5.1%.

Now, we can calculate the probability to get a profit more than 7% using the formula:

z = (7% - 20%) / 5.1% ≈ -2.5

P(z > -2.5) ≈ 0.9938

Thus, the probability to get a profit more than 7% is approximately 0.9938 or 99.38%.

Note: The question is incomplete. The complete question probably is: Suppose that your estimates of the possible one-year returns from investing in the common stock of the A. A. Eye-Eye Corporation were as follows:

Probability of occurrence   0.1       0.2    0.4      0.2      0.1

Possible return                    -10%   5%    20%    35%   50%

What is the probability to get a profit more than 7%?

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You are a financial manager for Shah Corporation. The firm is facing financing issues because of the COVID-19 and has decided to retain more of their earnings to help finance the growth. As a result, the board of directors is going to reduce the annual dividend by 1.05% a year for the next five years. After that they will maintain a constant dividend of $0.30 a share. Last year, the company paid $0.40 as the annual dividend per share. What is the market value of this
stock if the required rate of return is 4.49%? Please show all the calculations by which you came up with the final answer

Answers

Some of the financial managers may feel that the company's goals contradict with their own, causing them to prioritise productivity over social responsibility.

What selections are under the purview of a financial manager?

In general, financial managers keep an eye on a company's finances and work to secure its long-term survival. They are in charge of crucial duties like cash flow monitoring.

What factors do financial managers need to take into account when deciding which financing source a company should use?

The cost of financing, associated risk, dilution of control, and repayment flexibility are all factors that are taken into account when determining the best source of funding. The best capital structure for the company can be built by contrasting numerous options and analysing in light of these important variables.

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Question 7

0. 04

The purchase of savings bonds by individuals allows the U. S. Government to:

O make sure that the burden of the national debt is spread more equitably

O concentrate on microeconomics strategy

eliminate crowding out

balance supply and demand

create a perfect competition

Answers

The purchase of savings bonds by individuals allows the U.S. Government to make sure that the burden of the national debt is spread more equitably.

Savings bonds are a form of debt that the U.S. Government issues to finance its operations. When individuals purchase savings bonds, they are effectively loaning money to the government, which it can then use to fund various programs and initiatives. This helps to spread the burden of the national debt across a larger group of people, rather than concentrating it among a smaller number of investors or lenders.

The other options listed (concentrating on microeconomic strategy, eliminating crowding out, balancing supply and demand, and creating perfect competition) are not directly related to the purchase of savings bonds by individuals and are therefore not accurate answers to this question.

The purchase of savings bonds by individuals allows the U.S. Government to eliminate crowding out.

Crowding out could be a phenomenon that happens when government borrowing drives up intrigued rates, which in turn leads to a diminish in private investment.

This may happen since when the government borrows cash, it increments the request for loanable reserves, which drives up intrigued rates.

As intrigued rates rise, businesses have gotten to be less willing to contribute since the cost of borrowing gets to be more costly.

The purchase of investment funds bonds by people gives the government a source of financing that does not require it to borrow cash from the open.

This implies that the government does not need to drive up intrigue rates, which can offer assistance to anticipate swarming out

So the one is to eliminate crowding out.

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If the Residential Division purchases 25,000 units from the Commercial Division, rather than externally, at a negotiated transfer price of $52 per unit, how much would the operating income of each division and the total company operating income increase?

Answers

The operating income of the Residential Division would increase by $1,300,000, calculated as follows:

25,000 units x $52 = $1,300,000

The operating income of the Commercial Division would increase by the same amount, $1,300,000.

The total company operating income would increase by $2,600,000, calculated as follows:

$1,300,000 (Residential Division increase) + $1,300,000 (Commercial Division increase) = $2,600,000.

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Play Cloth Company, a retailer of children’s clothing, decided to dispose of its European division. The company announced the plan to sell the division on 20 March 20X1. Once the announcement was made, management hired a professional services firm to assist with finding a buyer for the division. The firm would charge 4.50% commission on the sale of the division. The European division had a carrying value of $51,460,000 and was listed for sale at a price of $49,270,000. The sale price was determined in reference to an independent fair value appraisal. The division earned $5,590,000 from 1 July 20X0-19 March 20X1 and $1,180,000 between 20 March 20X1-30 June 20X1. On 30 June 20X1, an appraisal indicated that the fair value of the division was approximately $49,680,000. Play Cloth had total earnings from continuing operations (after tax) of $131,800,000 for the year ended 30 June 20X1. Play Cloth has a tax rate of 30%.
Required:
1. Determine whether the European division qualifies as a discontinued operation. Yes or No
2. Calculate the total earnings (loss) for the European division.
3. Prepare a partial SCI for the year ended 30 June 20X1 using the information provided.

Answers

1. Yes, the European division qualifies as a discontinued operation.

What is operation?

Operation is a process of performing, executing, or carrying out a task in order to achieve a goal. It can refer to any kind of process, whether it is a routine task or a complex procedure.

The criteria for a discontinued operation is that it has been disposed of or is classified as held for sale, or is a component of an entity whose operations and cash flows are being eliminated from the ongoing activities of the company. In this case, Play Cloth has announced its plan to sell the European division and has hired a professional services firm to assist in finding a buyer. This meets the criteria for a discontinued operation.

2. The total earnings (loss) for the European division is $3,410,000. This is calculated by taking the sales price of the division ($49,270,000) and subtracting the carrying value of the division ($51,460,000). This results in a loss of $2,190,000, which is then adjusted for the income earned by the division between 1 July 20X0-30 June 20X1 ($5,590,000 + $1,180,000 = $6,770,000). This results in a total earnings (loss) of $3,410,000.3.

Partial Statement of Comprehensive Income

For the Year Ended 30 June 20X1

Discontinued Operations

Gain/Loss on Disposal of Division

Sales Price .............................$49,270,000

Carrying Value .........................$51,460,000

Loss on Disposal ......................$(2,190,000)

Income Earned by Division ........$6,770,000

Total Earnings (Loss) ...............$3,410,000

Tax Expense ..........................$1,023,000

Net Earnings (Loss) .................$2,387,000

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Are there particular evaluation approaches and methodologies
that you consider may be appropriate for the envisaged evaluation
activities?

Answers

Yes, there are particular evaluation approaches and methodologies that may be appropriate for the envisaged evaluation activities.

Examples include qualitative and quantitative research methods, surveys, focus groups, experiments, interviews, and literature reviews. Additionally, the use of metrics such as reliability, validity, or objectivity may be useful in assessing the evaluation activities.

There are specific evaluation approaches and methodologies that are suitable for the planned evaluation activities. These approaches are based on various factors such as the type of program, the resources available, and the objectives of the evaluation. What are Evaluation approaches and methodologies? Evaluation approaches and methodologies refer to various ways in which an assessment can be conducted. The primary goal of these approaches is to collect information about a program and analyze it to determine its effectiveness.

The following are some of the common evaluation approaches that can be used in the envisaged evaluation activities:

Outcome-Based Evaluation (OBE):This evaluation approach is primarily concerned with the program's results, such as the long-term impacts, changes in behavior, and progress toward the stated goals.Process Evaluation:Process evaluation, also known as implementation evaluation, assesses how well a program is implemented, including how well it meets the needs of the target population.Economic Evaluation:Economic evaluation is a systematic approach to determine the financial costs and benefits of a program or project.Impact Evaluation:Impact evaluation is a comprehensive assessment of the extent to which a program or policy is making a difference in the target population's lives.Formative Evaluation:This evaluation approach is used to identify the strengths and weaknesses of a program early on, allowing for adjustments and improvements to be made.Summative Evaluation:Summative evaluation is used to evaluate a program's overall effectiveness and efficiency after it has been completed. It assesses whether the program has met its objectives and achieved its intended outcomes.These are some of the evaluation methodologies that can be used in the envisaged evaluation activities. However, the choice of the evaluation approach and methodology depends on various factors such as the type of program, the resources available, and the evaluation's objectives.

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On 31 December 20X7, Dunder Mifflin has the following bond on the statement of financial position:
Bond payable, 8%, interest due semi-annually on 31 March and 30 September;
maturity date, 30 September 20X10 $16,000,000
Discount on bonds payable (83,000)
$15,917,000
Accrued interest payable of $400,000 was recorded on 31 December 20X7 ($16,000,000 × 10% × 3/12) and the bond discount was correctly amortized to 31 December 20X7. On 31 March 20X8, semi-annual interest was paid and the bond discount was amortized by a further $8,400. Then, 35% of the bond was retired at a cost of $5,488,000 (exclusive of interest).
Required: Provide the entries to record the bond interest and retirement on 31 March 20X8.

Answers

On 31 March 20X8, the semi-annual interest payment and bond discount amortization can be recorded as follows Dr. Interest Expense $640,000, Dr. Discount on Bonds Payable $91,400, Cr. Cash $731,400.

Interest Expense: ($16,000,000 × 8% × 6/12) = $640,000

Discount on Bonds Payable Amortization: ($83,000 + $8,400) = $91,400

Dr. Interest Expense $640,000

Dr. Discount on Bonds Payable $91,400

Cr. Cash $731,400

To record the retirement of 35% of the bond, the entry would be:

Dr. Bonds Payable $5,536,450 (($16,000,000 × 0.35) - $83,000)

Dr. Loss on Bond Retirement $1,054,550 (($16,000,000 × 0.35) - $5,536,450)

Cr. Cash $5,488,000

The loss on bond retirement is calculated as the difference between the carrying amount of the bonds retired and the cash paid to retire them.

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