The correct answers will be - (b), (c) and (d), as evaluating the price of services are really very difficult, that is why it is an important indicator of quality.
Your cash flow is impacted by the prices you set for your services. If done incorrectly, it could harm your professional image. For this purpose, it's important to be strategic with your pricing and establish a long-lasting formula to make sure you get paid and generate a positive profit.
Service pricing is the plan you follow to set your pricing so they are reasonable for your clients and profitable for your organization. Although it's not usually so straightforward in practice, service pricing. For service businesses, there isn't a "one size fits all" answer.
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paula works in the services department at a subaru car dealership. paul orders car parts directly from subaru because its parts are created specifically to fit and function properly in its vehicles. which advantage of standardization does this scenario illustrate? multiple choice standardized products function uniformly all the time, so customers get a product that meets their expectations. customers have more choices available to them. the customer gets exactly what they want. the dealership can charge more for a standardized product than a custom-designed product. customers can mix and match components for a customized design.
The advantage of standardization does this scenario illustrate standardized products function uniformly all the time, so customers get a product that meets their expectations. Thus the correct option is A.
What is standardization?The introduction of norms and compatible processes and equipment within a particular industry is commonly referred to as standardization. It ensures that technologies are consistent, accessible, and safe while reflecting the quality and integrity of those technologies.
Standardized products always perform consistently, customers receive a product that lives up to their expectations, which contributes to higher customer satisfaction.
Therefore, option A is appropriate.
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because an agent is using stationery with the logo of an insurance company, applicants for insurance assume that the agent is authorized to transact on behalf of that insurer. what type of agent authority does this describe?
The correct answer is option D.Apparent
The required details about agent is mentioned in below paragraph.
A person who has been given the legal authority to act on behalf of another person or entity is referred to in the legal community as an agent. In negotiations and other interactions with third parties, an agent may be hired to represent a client. Decision-making power may be delegated to the agent. The two most prevalent forms of agents are stockbrokers and attorneys, who are both employed by investors to make investment decisions on their behalf. Attorneys represent their clients in transactions. In these situations, the person the agent is representing is referred to as the principal.
In the world of finance, it alludes to a fiduciary relationship in which an agent has the power to carry out transactions on behalf of and in the best interests of the client.
(COMPLETE QUESTION)
Because an agent is using stationery with the logo of an insurance company, applicants for insurance assume that the agents is authorized to transact on behalf of that insurer. What type of agent authority does this describe? A. Express B. Implied C. Assumed D. Apparent
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what happens if a manager at the store is making changes on the same account that a customer service rep over the phone is also working on? could a customer end up with double the amount of credit adjustment? you: this is unlikely. we'll incorporate a technique called select to ensure that only one person can make changes to an account at a time.
This is unlikely will incorporate a technique called data Cleansing to ensure that only one person can make changes to an account at a time. Data cleansing makes it possible to have correct, logical data.
Data cleaning involves correcting or deleting inaccurate, damaged, improperly formatted, duplicate, or insufficient data from a dataset. There are numerous potential for data duplication or labelling errors when merging various data sources. Even though they may appear to be correct, bad data makes outcomes and algorithms unreliable. The specific procedures in the data cleaning process cannot be prescribed in a single, universal fashion because they differ from dataset to dataset.
To incorporate someone or something into another; to construct someone or something into another. You will soon become a part of our sales team, we hope. The prince had integrated himself into the central government. This is known as incorporate.
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suppose you will need $12000 in 3 years. how much must you invest per month in order to have $12000 if money earns an annual rate 6% compounded monthly? how much of the $12000 is interest?
If you want to have $12000 in 3 years, you need to invest $ 305.06 each month. The interest you will earn is $1017.7.
The formula for the future value of an annuity is given by:
FV = C [(1 + r)ⁿ - 1] / r
Where:
r = interest rate per period
n = number of periods
C = amount of each annuity payment
Parameters given:
FV = 12,000
r = 6%/12 = 0.005
n = 3 years x 12 = 36 months
Plug these parameters into the formula:
12,000 = C [(1 + 0.005)³⁶ - 1] / 0.005
C = 60 / 0.1967 = 305.06
Hence, you need to deposit $305.06 per month.
The amount of interest = Future value - total deposit
= 12,000 - (305,06 x 36)
= 1017.7
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henry, inc., bought a $500,000 building by making a $100,000 cash down payment and issuing a $400,000 long-term note. which immediate effect(s) did this transaction have on the accounting equation? (select all that apply).
The amount owed by the company is recorded in categories in the books called liability accounts. A credit to a liability account indicates that the firm owes more money, and a debit to a liability account indicates that the business owes less money (i.e. increases the liability).
The Buildings Account: What is it?Buildings is a fixed asset account that holds the carrying value of the structures that an entity owns. The carrying amount is equal to the initial purchase price less any asset impairments and later capitalized additions, plus the original purchase price.
What does a drop in money mean?Payment of sums owing for previous transactions or events to a company's vendors, banking institutions, or the government reduces cash. A monthly electricity bill, for example, or a 30-year mortgage payment are examples of short-term liabilities.
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nordic industries uses a periodic inventory system. during its first month of operations, nordic industries purchased inventory as follows: units unit cost total cost january 3 150 $ 15 $ 2,250 january 12 200 20 4,000 january 20 250 20 5,000 january 25 300 30 9,000 900 $ 20,250 there were 100 units in ending inventory on january 31. under the lifo cost method, what is the cost of goods sold for january? multiple choice $17,250 $19,500 $18,750 $18,000
The cost of goods sold for the month of January by Nordic industries will be $18750
As per the LIFO method, we will first sell the inventory which is purchased last followed by inventory purchased first
So, first, the inventory of 300 units purchased on January 25 at $30 per unit will be sold
Then, the inventory of 250 units purchased on January 20 at $20 per unit will be sold
Further, the inventory of 200 units purchased on January 12 at $20 per unit will be sold
Finally, the inventory of 50 units purchased on January 3 will be sold at $15 per unit
Cost of goods sold = 300 units purchased on January 25*Cost at $30 + 250 units purchased on January 20*Cost at $20 + 200 units purchased on January 12*Cost st $20 per unit + 50 units purchased on January 3*Cost of the units
= 300*30 + 250*20 + 200*20 + 50*15
= 9000 + 5000 + 4000 + 750
= $18750
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a new life policy is being purchased, and the producer knows that an existing contract through a different insurer will be lapsed. this is an example of:
A new life policy is being purchased, and the producer knows that an existing contract through a different insurer will be lapsed. This is an example of replacement.
What is replacement?Replacement means to replace a card in the file at its previous location or policy .Common synonyms for replacement include replace, displace, and supersede. All of these words mean "to put away or put in place from their usual or suitable place", but to replace means something that is lost, ruined, or no longer usable, or It means to fill the place occupied by something that is no longer suitable. I replaced a broken window.These can be further subdivided into the following types: (i) Determining the useful economic life of a policy . (ii) replace existing assets with new assets; A simple probabilistic model for a fully failing policy (a spare due to sudden failure).Someone is doing the work for someone else, or you are using something in place of something else: The policy has sent a replacement for the dismissed secretary.To learn more about replacement from the given link :
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a building was purchased for $69,500. the asset has an expected service life of eight years and depreciation expense each year is $5,000 using the straight-line method. what is the residual value of the building?
$29,500 is the residual value of the building. The estimated value of a fixed asset at the conclusion of its useful life or lease term is known as the residual value, sometimes known as salvage value.
How to calculate residual value ?
The estimated value of a fixed asset at the conclusion of its useful life or lease term is known as the residual value, sometimes known as salvage value.
Contractually, residual values are handled either through closed contracts or through open contracts. Remaining value of an asset after it has fully depreciated or after it has deteriorated beyond repair is known as residual value in accounting.
The market worth of the vehicle for the term and the needed miles serve as the starting point for the calculation of residual values, which is then followed by seasonality, monthly adjustment, lifetime, and disposal performance. In order to set the end value as the residual value, the leasing firm will utilise its own historical data to integrate the adjustment variables into the computation.
Calculate the residual value of the building
let the residual value be p :
5,000 = 69,500 - p)/8
40,000 = 69,500 - p
p = 69,500 - 40,000 = $29,500
Residual value of the building is $29,500
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installment credit, in which the debt is repaid in equal installments over a specified period of time, exploded on the american scene with the advent of the:
Instalment credit, in which the debt is repaid in equal instalments over a specified period of time, exploded on the American scene with the advent of the automobiles.
Give a brief account on Instalment credit.A loan that has to be paid back with a predetermined period of time with fixed payments is regarded as an Instalment credit. The monthly payment is impacted by the interest rate, length, as well as fees of the loan.
Mortgages, auto loans, and personal loans are examples of common instalment loan kinds.
The time it takes to pay off an instalment loan might range from months to years. Depending on whether the interest rate is fixed or variable, it may increase or decrease in the future. In case of instalment loans some sort of additional expenses such as origination or late fees, may be possible.
One of the most important strategies to establish and enhance your credit is by making timely instalment loan payments.
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f the labor force is 155.8 million people, and 141.4 million people are employed, what is the unemployment rate? round your answer to the nearest tenth.
If the labor force is 155.8 million people, and 141.4 million people are employed the unemployment rate = 9.2%.
What is unemployment ?The term unemployment refers to a situation in which a person is actively looking for labor but is unable to find one. The unemployment rate is considered an important indicator of economic health. The most commonly used measure of unemployment is the unemployment rate.When people are not working but are actively looking for labor . For example, Glenn didn't work at all last week despite trying to find a job, so he's counted as unemployed.Unemployment refers to the situation in which able-bodied people are looking for positive labor opportunities but are unable to find them for various reasons. For a person to be considered unemployed, he or she must be an active member of the workforce actively seeking gainful employment.To learn more about unemployment from the given link :
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the learning curve theory is based upon each of these conclusions except: group of answer choices a. the time required to perform a task decreases as the task is repeated. b. all time increases can be associated with improved product quality. c. the amount/rate of improvement decreases as more units are produced. d. the rate of improvement has sufficient consistency to allow its use as a prediction tool.
The idea of a learning curve is based on all of these findings, except that the rate of improvement lacks the consistency needed to be used as a predictive tool.
A learning curve is a mathematical idea that visually illustrates how a process improves over time. learning outcome and growing skills. According to the learning curve idea, things will take less time and effort to complete the more times they are completed because of the consistency you gain as you learn the process. A tool for estimating costs and measuring production efficiency,
the learning curve was originally introduced by psychologist Hermann Ebbinghaus in 1885. A percentage that indicates the rate of improvement is generally used to express a learning curve. In a graphical representation of the learning curve, a steeper slope indicates initial learning that results in consistency, further cost savings, and subsequent learning that leads to slower and more difficult cost savings.
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true or false: an internal control goal for cash receipts is to ensure that the business documents the correct amount of cash received and safely depo
The goal of cash receipt controls is to make sure that all money—checks, coins, currency, and credit cards—is properly recorded and deposited on time.
What exactly are internal controls for payments and cash receipts?
To control cash exchanges, associations ought to take on a portion of the accompanying practices: Use a lockbox to accept cash payments from customers, separate duties, keep all cash and assets safe, and require background checks for employees.
What are the four cash-related internal control measures?
Cash is subject to four internal control measures. The separation of duties, the use of written protocols, background checks on employees, and storing assets and cash in safe places are examples of these.
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which of the following is the most authoritative source of accounting standards for nonprofits? a. current practices widely used by not-for-profit entities b. fasb codification c. fasb statements d. gasb codification
The specifications for audit reports, the credentials of qualified auditors, and audit organization quality control are all covered in this book authoritative.
This means that in order to conduct their audits and generate their reports, the auditors of federal, state, and local government programs must adhere to these requirements authoritative.
The Yellow Book is consulted by auditors of government organizations, including those that are recipients of government grants, as well as by other auditing firms carrying out Yellow Book audits.
As a result, the definitive source for governmental auditing requirements is The Yellow Book. In other words, this source/document contains information about governmental auditing requirements. The Financial Accounting Rules Board, which oversees accounting standards for nonprofits (FASB). When producing reports, nonprofit accounting experts are required to follow certain rules. The main rules that your company needs to be aware of are the GAAP requirements. Generally Accepted Accounting Principles is what this term refers to. Both enterprises and organizations must follow GAAP. Although state laws differ in terms of the criteria for GAAP compliance, it is generally advised in nonprofit accounting practices that you employ the GAAP system even if your state laws do not specifically demand for it. Generally Accepted Accounting Principles, or GAAP, are used by both public entities and nonprofit organizations. But each organization also has its own criteria that need to be taken into consideration. The Government Accounting Standard Board (GASB) is followed by the government, and the Financial Accounting Standards Board is followed by non-profit organizations (FASB) authoritative.
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as a member of a team of subject matter experts in the management of engineering projects, you need to organize discussions in a way that facilitates participation by all the experts. which team decision-making approach will be best in ensuring input from the team experts?
Delphi group technique is the best team decision-making approach for ensuring input from team experts.
Who is subject matter experts?Subject matter experts provide highly specialized knowledge about a specific area, practice, process, technical method, or piece of equipment to companies or clients. Others seek them out to solve specific problems or meet challenges. If a resource is truly an expert in their field, their greatest value will be found in a few key areas: Better requirement definition. Project priorities are being aligned with industry best practices. Putting user needs at the heart of the design process to influence product delivery and strategy. Clearly, subject matter experts' unique perspectives are critical to success. Opportunities and challenges accompany the high demand for a subject matter expert's knowledge. Being a subject matter expert, on the other hand, is beneficial to your professional development.
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what comes closest to the value today of a stock that just paid a divident of 1.45 and expects to grow that divident by 7% per year in year 1 and year 2 and then grow but will then see the growth in ddividends fall to 2 in the third year and will continue to grow at that lower rate each year thereafter
Learning how to evaluate a stock is one of the most crucial skills an investor can acquire. However, it can be very difficult, particularly when it comes to equities with supernormal growth rates. These equities have rapid growth over a long time—say, let's a year or more—and for an extended length of time.
However, given the dynamic nature of markets and businesses, many investing formulas are a bit too simple. Sometimes you can't employ a consistent growth rate when dealing with a growing organization. You must be able to determine value in these situations using both the company's early, high growth years and its later, lower consistent growth years. If you don't receive the right value, you could end up losing your shirt.
Most frequently, the supernormal growth model is tested on finance exams or more difficult investment certificate tests. Its foundation is the discounting of cash flows. The supernormal growth model is used to determine the value of a stock whose predicted future dividend growth rate is higher than average. It is anticipated that the dividend would return to normal with consistent growth following this supernormal growth.
The supernormal growth model will be explained in three steps:
Discount model for dividends (no growth in dividend payments)Model for dividend growth with steady growth (Gordon Growth Model)Discounting of dividends with supernormal growthTo learn more about dividend from the given link.
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an advertising executive, wants to use subliminal advertising to encourage people to buy his product. what effect will the use of subliminal advertising likely have on product sales? group of answer choices sales will double. sales will not be affected. sales will drop by a third. sales will triple.
Sales will not be affected by the use of subliminal advertising to encourage people to buy his product.
Subliminal messages are frequently incorporated into other media, such as TV advertising or songs, and are visual or audible stimuli that the conscious mind cannot perceive. It is possible to transmit a whole distinct message with this type of messaging or to make commercials more powerful or convincing.
The most well-known instances of subliminal messaging and advertising are singing a message backward or inserting it into a song at a higher or lower frequency. In the one-tenth-of-second intervals between each frame of film, words, and images momentarily flash.
v. Public Service Commission of New York in 1979, the Supreme Court declared that marketing speech must not be deceptive in order to be covered by the First Amendment. By definition, subliminal advertising is not covered by this protection in the case Vance v. in 1989.
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a company purchased $3,800 of merchandise on july 5 with terms 1/10, n/30. on july 7, it returned $420 worth of merchandise. on july 8, it paid the full amount due. the amount of the cash paid on july 8 equals:
On July 5, a Company made a $3,800 purchase under the terms "1/10, n/30. It had $420 worth of goods returned on July 7. The entire sum was paid on July 8th. $3,346 is the total amount of the cash paid on July 8.
What transpires after an acquisition of a business?When one firm buys the majority or all of the shares of another to take over that company, the transaction is known as an acquisition. Buying more than 50% of the stock and other assets of the target company entitles the buyer to decide what to do with the newly acquired assets without seeking consent from the other shareholders.
How is the worth of the goods determined?What Constitutes Gross Merchandise Value? GMV is computed by dividing the total quantity of products sold within a specific time period by the price of those commodities. GMV is calculated as Sales Price x Number of Sold Goods.
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what type of ranking is being used when managers look over a list of employees, decide who is best and cross that name off the list, decide who is the worst employee and cross that name off the list, and then repeat the process?
The type of ranking that is being used when managers look over a list of employees, decide who is best and cross that name off the list, decide who is the worst employee and cross that name off the list, and then repeat the process is called alternation ranking.
What is alternation ranking?It is a story of the ranking method used by human resource managers, and this ranking methodology is used to select the worst and the best employees. It is important to mention that a criterion or a trait is being used to assess the employees.
Managers use the alternation ranking method to rank an employee by indicating how much such an employee scores on particular criteria or traits. The higher or lower the score on that criteria, the higher or lower will be the ranking.
It can be concluded that the type of ranking that is being used when managers look over a list of employees, decide who is best and cross that name off the list, decide who is the worst employee and cross that name off the list, and then repeat the process is called alternation ranking.
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The push model is also called ________ which means the production process begins with a ________ that is simply an educated guess as to anticipated customer demand.
The push model is also called make-to-stock which means the production process begins with a forecast that is simply an educated guess as to anticipated customer demand.
What is customer demand?
The willingness and capacity of consumers to buy a number of products and services in a specific amount of time or at a given point in time, is defined as consumer demand. Simply wanting to buy something does not comprise effective demand; willingness must be accompanied by the ability to pay. In short, purchasing power is required to convert desire into effective demand. Specific customer income (or disposable savings) in related to the prevailing price level determines purchasing power. The fundamental principle in free market theory is consumer sovereign power, with consumer spending acting as the dominant market force. There wouldn't be any sales, no revenue, and no profit if there was no demand.
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sanjeep takes out a $250,000 mortgage and makes monthly payments. the yearly interest rate on the loan is 5% and the loan is compounded monthly for 25 years. calculate the total amount of interest that sanjeep will pay. give your answer in dollars to the nearest dollar. do not include commas or the dollar sign in your answer.
Compound interest is computed as interest on the initial principal plus any accrued interest from prior periods.
Where should I begin while compounding interest?Savings instruments like CDs and savings accounts are the best choice if you're a beginner investor and want to start benefiting from compound interest as soon as possible with the least amount of risk feasible. Bank-issued CDs are financial products that have a minimal deposit requirement and pay interest on a recurring basis.
With an example, what is compound interest?Defining compound interest
For instance, if you deposit $1,000 in an account that offers 1% yearly interest, after a year you would have received $10 in interest. Compound interest allowed you to earn 1 percent on $1,010 in Year Two, which amounted to $10.10 in interest payments for the year.
P= $250,000
R= 5% = [tex]\frac{5}{100}[/tex]
N= 12
T= 25 years
A= P [tex]1+(\frac{r}{n})^{nt}[/tex]
= 25000 [tex](1+\frac{0.05}{12})^{12*25}[/tex]
= 25000 [tex](1.00416)^{300}[/tex]
= 87032.26
Hence the total amount is 87032.26
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an owner of a small publishing company allowed a friend who was starting a handmade soap business to load the publishing company's copy of microsoft word onto the friend's computer. this activity is
Handmade soap business to load the publishing company's copy of Microsoft word onto the friend's computer. this activity is both illegal and unethical.
What is business?
An organisation or enterprising entity engaged in business, industrial, or professional activities is referred to as a business. A business's goal is to coordinate some form of economic production (of goods or services). Businesses can indeed be for-profit corporations or charitable organisations working to advance a social cause. Businesses range in size and scope from small, local enterprises to large, global conglomerates. A person's efforts and activities to produce and sell products and services for a profit are also referred to as business. An organisation that runs for commercial, industrial, as well as professional purposes is frequently referred to as a business. The concept starts with a name and an idea, and in-depth market research may be necessary to ascertain whether it is feasible to turn this same idea into a profitable.
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which are drawbacks of using the markowitz model to solve for optimal risky portfolios? multiple select question. the model does not provide any guidance as to investor risk aversion. when there are many assets, the model requires a huge number of estimates to fill the covariance matrix. the model does not provide guidance for forecasting the security risk premiums. the model uses the full available information on the covariance of assets.
Since Markowitz model uses mean-variance and does not guide investors about risk aversion, the correct answers are- (b) and (c).
The drawbacks are-
The model doesn't provide guidance for forecasting the security risk premiumWhen there are many assets, the model requires a huge number of estimates to fill the covariance matrixPortfolio diversification is the primary priority of the Markowitz model of shortlisting. Stocks are classified into both high-risk and low-risk investment.
Based on the Markowitz portfolio model, diversification can assist in lowering risks. The model guarantees the concurrent maximizing of overall portfolio returns. Two categories of stocks are provided to investors: low-risk, low-return stocks and high-risk.
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as a result of a global pandemic, the u.s. government institutes a federally funded program to provide payments to small and medium size enterprises that pay their employees during the economic interruption. this is an example of a(n)
When screening (or more stringent policies) were first implemented, the predicted number of COVID-19 cases increased by approximately 1.9 times.
And cases per capita were 7.7 times higher, in particular, with a one standard deviation increase in the globalization index.
What effects would a global pandemic have on the economy?
The International Monetary Fund (IMF) estimates that the COVID-19 pandemic has had a significant impact on the global economy. Between 2019 and 2020, the median global GDP is expected to decrease by 3.9%, making it the worst economic downturn since the Great Depression.
Which parts of the economy are being affected by this pandemic?
The COVID-19 pandemic is affecting public health and causing economies and labor markets to be disrupted like never before, including for forest industry workers and businesses. It has made the problems that already exist worse, and as a result, many businesses and employees have suffered.
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Question # 5
Multiple Choice
The executive summary portion of the market plan should be no more than a couple of pages long.
A
O False
O True
It is true that the executive summary portion of the market plan should be no more than a couple of pages long.
What is market plan?A market plan is described as a strategy that is mainly implemented for advertising purposes, and the main goal of this strategy is to sell services and products. It is important to mention that a market plan allows one to properly identify the target market.
The executive summary highlights an overall summary of a document. Hence, the entire length of the executive summary mainly depends on the entire length of the document. The summary or executive summary of a document can range from one to two pages. Hence, the statement is true.
It can be concluded that the executive summary portion of the market plan should be no more than a couple of pages long.
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cost reductions stemming from strategic fit along the value chains of related businesses can result in multiple choice economies of scope. economies of scale. related diversification. unrelated diversification. cross-business strategic fits.
Economies of scope may emerge from cost reductions due to strategic fit along the value chains of associated enterprises.
A strategy is a plan of action used by businesses to accomplish their long-term objectives. To put it another way, it is a long-term strategy that businesses adopt to achieve their goals. It entails a set of actions that follow a pattern and aim to accomplish a company's objectives. Long-term, it aids in adapting its operations, resources, and scope to external developments.
For a variety of business sectors, companies establish strategies. They can adopt a forward-thinking strategy with the help of these techniques. Additionally, it enables businesses to employ their resources more effectively. Strategies are essential for giving a business direction and goal.
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A share of stock with a beta of 0. 75 now sells for $50. Investors expect the stock to pay a year-end dividend of $2. The t-bill rate is 4%, and the market risk premium is 7%. Suppose investors believe the stock will sell for $52 at year-end. Calculate the opportunity cost of capital. Is the stock a good or bad buy? what will investors do? at what price will the stock reach an "equilibrium" at which it is perceived as fairly priced today?.
What the investors will do depends on whether the actual return will be higher, lower or the same as the required return (Opportunity cost of capital) .
What is Equilibrium in business?When market supply and demand are in balance, prices become steady. This is known as equilibrium. In general, a surplus of goods or services leads to lower prices, which increases demand, whereas a shortfall or undersupply raises prices, which decreases demand.
The holding period return, which is (earnings (dividends) + (ending stock price - beginning stock price))/beginning stock price = (2 + (52 - 50))/50 = 4/50 = 8%, can be used to determine the actual return.
CAPM can be used to determine the Opportunity Cost of Capital. = Risk Free Rate + beta(Market Premium) = 4% + 0.75(7%) = 9.25%
The stock is a bad buy since the Opportunity Cost of Capital exceeds the Actual Return on the stock.
Investors won't buy anything.
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jen and alica are both u.s. citizens. jen opens a cafe in france. alicia buys equipment from a company in canada to use in a u.s.-based factory. whose action is an example of u.s. foreign direct investment?
When a company directly invests in new facilities to produce and/or market in another country, this is known as foreign direct investment (FDI).
What exactly is an FDI (foreign direct investment)?
A stake in a foreign company or project owned by a foreign investor, company, or government is known as foreign direct investment (FDI).
The decision to acquire a substantial stake in a foreign company or to buy it outright to expand operations to a new region is typically referred to by this term. Typically, the term is not used to refer only to stock investments in foreign companies. Because it establishes connections between economies that are both stable and enduring, foreign direct investment (FDI) is an essential component of international economic integration.
What is FDI, and what are its benefits and drawbacks?
Foreign direct investment boosts a nation's economy. Foreign direct investment (FDI) may impede domestic investment. By providing a subsistence workforce, FDI contributes to the expansion of human capital. Negative values can occasionally occur as a result of investments. Trades on the global market are made easier by FDI, which enables an increase in exports.
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Miles is planning to open a credit card, charge only his monthly
streaming service subscriptions (less than $50 per month), and pay his
entire bill in full each month so that he never has to pay interest. Which
of these factors do you think is most important for Miles to consider
when selecting a card? Why?
Answer:Miles is planning to open a credit card, charge only his monthly
Explanation:
streaming service subscriptions (less than $50 per month), and pay his
entire bill in full each month so that he never has to pay interest. Which
of these factors do you think is most important for Miles to consider
when selecting a card? Why?
The most important factor that Miles has to first consider on the credit card that he is to choose would be to interest rates that would be paid on the card annually.
What is a credit card?The term credit card has to do with the plastic card that would be issued to a user that has to do with the line of credit with which they would be able to make purchases and get goods and services from.
It helps one to be able to make purchases due to the fact that they have a good credit score.
In order to get a credit card one has to check to be able to ascertain the card that has the best rates. This is what would make the fee that they are to pay for the ownership of the card to be cheaper compared to when it has a higher interest rate of payment.
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why do consumers make a choice by looking at both the marginal utility (mu) and the price for a product (mu/p) rather than just the price or just the marginal utility?
Consumers always try to equate marginal utility of a good to its price which is a marginal cost of consumption.
What is marginal utility and why consumers make a choice by looking at both mu and price?So economically a utility is a kind of benefit that a consumer gets by buying a product of choice.Now marginal utility is the benefit one gets by buying an additional unit of consumption except the first product bought.Here the question is asked about the consumer taking notice of both marginal utility and price while buying goods.Hence consumers watch for the marginal utility and price of the good both to equate the marginal utility to its price which is a marginal cost of consumption.To know more about marginal utility visit:
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A share of stock with a beta of 0. 75 currently sells for $50. Investors expect the stock to pay a year-end dividend of $2. The 1 year t-bill currently sells for $961. 54, and the historic return on the market is 11%, the historic risk free rate is 4%. If the stock is perceived to be fairly priced today, what must be investors’ expectation of the price of the stock at the end of the year?.
$53.515 is the price of the stock at the end of the year calculating by the capital asset pricing model formula
In this question, we apply the Capital Asset Pricing Model (CAPM) formula which is shown below
Cost of equity = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)
= 11% + 0.75 × 4%
= 11%+ 0.03%
= 11.03%
The Market rate of return - Risk-free rate of return) is also known as the market risk premium and the same is applied.
Now the stock price at the end of the year would be
of stock = (Today price + dividend ) ÷ (1 + cost of equity)
$50 = (Today price + $2) ÷ (1 + 11.03%)
So, the today price would be
$53.515
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