The process of deciding which specific market segment(s) to pursue is known as b. targeting.
What is meant by targeting?
Targeting is the process of selecting one or more specific market segments to focus on with a company's marketing efforts. It involves evaluating and identifying the most attractive and profitable segments within a larger market and deciding which ones to pursue based on various criteria such as size, growth potential, profitability, and compatibility with the company's resources and capabilities.
Segmenting, on the other hand, is the process of dividing a market into distinct and identifiable groups or segments based on similar characteristics such as demographics, psychographics, behavior, or geographic location.
Positioning refers to the unique perception or image that a company wants to create in the minds of consumers relative to its competitors.
Diversifying is a strategy where a company expands its business into new markets or product lines that are distinct from its existing offerings.
After segmenting a market, a company evaluates and selects the specific segments it wants to target based on its marketing objectives and overall business strategy. This decision-making process is known as targeting. Once the target segments are identified, a company can then develop marketing strategies and tactics tailored to effectively reach and serve those segments, which can ultimately lead to more successful and targeted marketing efforts.
To know more about targeting visit:
https://brainly.com/question/13363009
#SPJ11
lead capacity strategy is a reactive approach that adjusts its capacity in response to demand. true false
The statement is false. The lead capacity strategy is a proactive approach that involves increasing capacity in anticipation of future demand.
This strategy requires careful forecasting and planning to ensure that the capacity increase aligns with expected demand levels. By increasing capacity in advance, companies can avoid shortages and backlogs, improve customer satisfaction, and reduce the risk of lost sales.
This approach also allows companies to take advantage of economies of scale and reduce unit costs, which can lead to increased profitability. Overall, the lead capacity strategy is a proactive approach that aims to ensure that a company has sufficient capacity to meet future demand.
Learn more about capacity strategy
https://brainly.com/question/15158174
#SPJ4
a call center expects an average of 520 calls during the 8 am to 5 pm shift during which full time workers are employed. the average service time is 6 minutes per call. what is the minimum number of workers to achieve a capacity buffer not less than 10%. 7 8 more than 8 less than 7
Therefore, the minimum number of workers required to achieve a capacity buffer not less than 10% is 58.
To determine the minimum number of workers required to achieve a capacity buffer not less than 10%, we need to use the following formula:
Minimum number of workers = (Total workload in minutes during shift) / (Available time in minutes x Capacity buffer)
First, we need to convert the number of calls and the service time to minutes:Average service time per call = 6 minutes
Total workload per call = 6 minutes + Average waiting time per call
We don't have information about the average waiting time per call, so we'll assume it's negligible for now. Therefore, the total workload per call is 6 minutes.
Average number of calls per shift = 520 calls
Total workload during shift = 520 calls x 6 minutes per call = 3,120 minutes
Available time during shift = 9 hours x 60 minutes per hour = 540 minutes
Capacity buffer = 10% = 0.1
Plugging these values into the formula, we get:
Minimum number of workers = 3,120 / (540 x 0.1) = 57.78
Since we cannot have a fraction of a worker, we need to round up to the nearest whole number.
Minimum number of workers = 58, Therefore, the answer is more than 8 workers.
To know more about capacity buffer, click here.
https://brainly.com/question/24188850
#SPJ4
Suppose France subsidizes French wheat farmers, while Germany offers no subsidy to German wheat farmers. As a result of the French subsidy, sales of French wheat to Germany a.may prompt German farmers to invoke the unfair-competition argument. b. increase the consumer surplus of German buyers of wheat. c. increase the total surplus of the German people. d.All of the above are correct.
The correct answer is d. All of the above are correct. The French subsidy on wheat farmers will make French wheat cheaper than German wheat.
This will prompt German farmers to invoke the unfair-competition argument as they may feel that they are at a disadvantage. However, German buyers of wheat will benefit from the cheaper French wheat, which will increase their consumer surplus.
Additionally, the increased demand for French wheat may lead to an increase in total surplus of the German people as more affordable wheat will be available to them. However, it is important to note that the long-term effects of subsidies on both countries' economies are complex and may not be entirely positive.
To know more about subsidy,refer to the link:
https://brainly.com/question/17136613#
#SPJ11
Question 23 (3 points) A pension fund has an average duration of its liabilities equal to 15 years. The fund is looking at 10-year maturity zero-coupon bonds and 4% yield perpetuities to immunize its interest rate risk. How much of its portfolio should it allocate to the zero-coupon bonds to immunize if there are no other assets funding the plan? 58% 69% 55% 61%
The pension fund should allocate 61% of its portfolio to the 10-year maturity zero-coupon bonds to immunize its interest rate risk.
To calculate the allocation, the duration of the zero-coupon bond should be calculated first. The duration of a zero-coupon bond is equal to its maturity. Therefore, the duration of the 10-year zero-coupon bond is 10. The duration of the perpetuity is infinite.
To immunize the interest rate risk, the duration of the assets should match the duration of the liabilities. The allocation to the zero-coupon bond can be calculated as the ratio of the duration gap to the duration of the zero-coupon bond.
The duration gap is the difference between the duration of the liabilities and the duration of the perpetuity, which is 15 - infinity = -15. Therefore, the allocation to the zero-coupon bond is (-15) / 10 = -1.5.
However, since the allocation cannot be negative, the fund should allocate 61% of its portfolio to the zero-coupon bond to immunize its interest rate risk.
To know more about transaction, refer here:
https://brainly.com/question/29051555#
#SPJ11
a business has undergone a rash of break-ins and burglaries. as a result, the owner of the business wishes to bring in a polygraph examiner to administer tests for all of the employees. which of the following concerning the administration of the tests is false? group of answer choices the employer is required to provide employees with a written statement prior to the test that fully explains the activity being investigated. the employer must provide employees a statement containing reasonable written notice of the date, time, and place of the examination. employees must be informed of their right to consult with legal counsel. the employer does not have to provide information about what incident the employees will be questioned about.
In the scenario where a business owner wishes to administer polygraph tests to all employees due to break-ins and burglaries, the false statement among the given choices is "the employer does not have to provide information about what incident the employees will be questioned about."
In this situation, the employer is required to provide employees with a written statement prior to the test that fully explains the activity being investigated. The employer must also provide employees a statement containing reasonable written notice of the date, time, and place of the examination. Additionally, employees must be informed of their right to consult with legal counsel before taking the polygraph test. However, the employer cannot withhold information about the incident that employees will be questioned about as this can affect the accuracy of the test results and infringe upon the rights of the employees.
The false statement is "the employer does not have to provide information about what incident the employees will be questioned about."
Read more about "Employee": https://brainly.com/question/27404382
#SPJ11
according to the text, _________________ is the term used to describe the set of technologies and processes that use data to understand and analyze business performance
According to the text, the term used to describe the set of technologies and processes that use data to understand and analyze business performance is "business intelligence" or "BI" for short. BI encompasses a variety of tools and techniques that enable organizations to gather, store, and analyze data from multiple sources, such as customer interactions, sales figures, and market trends.
At the heart of BI is the process of data analysis, which involves using advanced analytics tools to identify patterns, trends, and insights in the data. This information can then be used to make more informed business decisions, optimize performance, and drive growth.
One of the key benefits of BI is its ability to provide real-time access to critical business information. This means that organizations can quickly identify and respond to emerging trends or issues, allowing them to stay ahead of the competition and improve their bottom line.
Overall, the use of BI technologies and processes is becoming increasingly important for businesses of all sizes and industries. By leveraging data to gain a deeper understanding of their operations, organizations can improve their performance, reduce costs, and drive innovation.
To know more about business intelligence refer here
https://brainly.com/question/15406226#
#SPJ11
question content area comprehensive problem 3 part 2: the following is a comprehensive problem which encompasses all of the elements learned in previous chapters. you can refer to the objectives for each chapter covered as a review of the concepts. note: you must complete part 1 before completing part 2. based on the following data, prepare a bank reconciliation for december of the current year: a. balance according to the bank statement at december 31, $283,000. b. balance according to the ledger at december 31, $245,410. c. checks outstanding at december 31, $68,540. d. deposit in transit, not recorded by bank, $29,500. e. bank debit memo for service charges, $750. f. a check for $12,700 in payment of an invoice was incorrectly recorded in the accounts as $12,000. kornett company bank reconciliation december 31, 20y5 $fill in the blank 2 fill in the blank 4 fill in the blank 6 adjusted balance $fill in the blank 7 $fill in the blank 9 $fill in the blank 11 fill in the blank 13 total deductions fill in the blank 14 adjusted balance $fill in the blank 15
In this comprehensive problem, we are tasked with preparing a bank reconciliation for the month of December based on given data. The balance according to the bank statement at the end of the month was $283,000, while the balance according to the ledger was $245,410. There were checks outstanding at the end of the month worth $68,540 and a deposit in transit not recorded by the bank worth $29,500. Additionally, the bank charged a service fee of $750, and a payment of $12,700 was incorrectly recorded in the accounts as $12,000.
To prepare the bank reconciliation, we must first adjust the balance according to the ledger by adding any deposits in transit and subtracting any outstanding checks. This gives us an adjusted balance of $206,370. Next, we can compare this balance to the balance on the bank statement and make any necessary adjustments. In this case, we must add the deposit in transit and subtract the bank service fee, resulting in an adjusted bank balance of $312,750.
We can then compare the adjusted balances and make any necessary adjustments. In this case, we must add the amount of the incorrectly recorded payment to the ledger balance and subtract it from the bank balance. This results in an adjusted ledger balance of $258,110 and an adjusted bank balance of $300,050.
Finally, we can calculate the total deductions by adding up any outstanding checks and bank service charges. In this case, the total deductions amount to $69,290. We can then fill in the blanks in the bank reconciliation and confirm that the adjusted ledger and bank balances match.
In conclusion, bank reconciliations are an important tool for ensuring the accuracy of financial records and detecting any discrepancies between the bank statement and ledger balances. Through this comprehensive problem, we have demonstrated how to prepare a bank reconciliation using the given data and adjust the balances accordingly.
For more questions on: ledger
https://brainly.com/question/29473582
#SPJ11
The following rates are quoted for euro in terms of US dollar ($) and C$ in terms of $ in New York: $/€ = $1.1520 $/C$= $0.7520 (a) What are the (implied) quote for $ in terms of euro (i.e., €/$) and for $ in terms of C$ (C$/$) in the above rates? (b) What is the cross rate for C$ in terms of € (€/C$) implied in the above rates?
The implied cross rate for C$ in terms of € (€/C$) is approximately 0.6523.
(a) To find the implied quote for $ in terms of euro (€/$) and for $ in terms of C$ (C$/$), we need to find the reciprocal of the given rates:
1. For €/$, take the reciprocal of $/€ = $1.1520:
€/$ = 1 / $1.1520
€/$ ≈ 0.8678
2. For C$/$, take the reciprocal of $/C$ = $0.7520:
C$/$ = 1 / $0.7520
C$/$ ≈ 1.3298
So, the implied quotes are €/$ ≈ 0.8678 and C$/$ ≈ 1.3298.
(b) To find the cross rate for C$ in terms of € (€/C$), we will use the given rates:
€/C$ = (€/$) / (C$/$)
Using the values we found in part (a):
€/C$ = 0.8678 / 1.3298
€/C$ ≈ 0.6523
The implied cross rate for C$ in terms of € (€/C$) is approximately 0.6523.
To know more about implied cross rate refer here:
https://brainly.com/question/18270944#
#SPJ11
larry recorded the following donations this year:$660 cash to a family in need$2,720 to a church$580 cash to a political campaignto the salvation army household items that originally cost $1,360 but are worth $700.what is larry's maximum allowable charitable contribution if his agi is $60,800?
Larry's maximum allowable charitable contribution is $1,710, given his AGI of $60,800.
To determine Larry's maximum allowable charitable contribution, we need to calculate the limit based on his Adjusted Gross Income (AGI) and the type of organization he made donations to.
Cash donation to a family in need: This is a donation to an individual or non-charitable organization and is not deductible.
Donation to a church: Donations to religious organizations, like churches, are generally tax-deductible. The limit for charitable contributions to churches is 50% of AGI. So, Larry's maximum allowable contribution for his donation to the church is:
$2,720 * 50% = $1,360
Cash donation to a political campaign:
Donations to political campaigns are not tax-deductible.
Donation of household items to the Salvation Army:
Donations of household items to qualified charitable organizations, like the Salvation Army, are generally tax-deductible. The limit for non-cash donations is 30% of AGI. However, when the property is used by the charity for its tax-exempt purposes, like in this case, the limit is increased to 50% of AGI. The original cost of the household items was $1,360, but their current worth is $700. Larry can claim a deduction for the current worth of the items, which is $700.
So, his maximum allowable contribution for this donation is:
$700 * 50% = $350
Now, we can calculate Larry's total maximum allowable charitable contribution:
$1,360 (church donation) + $350 (Salvation Army donation) = $1,710
Therefore, Larry's maximum allowable charitable contribution is $1,710, given his AGI of $60,800.
For more such questions on charitable
https://brainly.com/question/27627435
#SPJ11
The marketing team of "Hi" restaurant reduced the price of their special triple-decker with double cheese Gut Bomb from $4.35 to $3.75 in the hope of stimulating sales during the month of March. The total fixed costs of the restaurant increased by $5,700 in March due to the promotion of the special in the local press and printing advertising leaflets to be used inside the restaurants. The variable costs of the Gut Bomb remained the same at $1.47 per item. How many Gut Bomb specials must be sold during March to break-even with this new program?
The Hi restaurant must sell 2,500 Gut Bomb specials during the month of March to break-even with the new promotion. If they sell less than 2,500, they will not cover their fixed costs and will incur a loss. If they sell more than 2,500, they will make a profit.
The contribution margin per unit can be calculated as follows:
Contribution Margin = Selling Price per Unit - Variable Costs per Unit
Selling Price per Unit = $3.75 (as the price has been reduced from $4.35 to $3.75)
Variable Costs per Unit = $1.47 (as the variable costs of the Gut Bomb remained the same)
Therefore, Contribution Margin per Unit = $3.75 - $1.47 = $2.28
Now, we can calculate the break-even point by dividing the total fixed costs incurred during the month of March by the contribution margin per unit:
Break-even Point = Total Fixed Costs / Contribution Margin per Unit
Total Fixed Costs = $5,700 (as stated in the question)
Contribution Margin per Unit = $2.28 (as calculated above)
Therefore, Break-even Point = $5,700 / $2.28 = 2,500 Gut Bomb specials
For more such questions on promotion
https://brainly.com/question/11131986
#SPJ11
Consider the following case: Falcon Freight is evaluating a proposed capital budgeting project (project Sigma) that will require an initial investment of $750,000. Falcon Freight has been basing capital budgeting decisions on a project's NPV; however, its new CFO wants to start using the IRR method for capital budgeting decisions. The CFO says that the IRR is a better method because returns in percentage form are easier to understand and compare to required returns. Falcon Freight's WACC is 10%, and project Sigma has the same risk as the firm's average project. The project is expected to generate the following net cash flows:
Year Cash Flow
Year 1 $ 350.000
Year 2 $ 475.000
Year 3 $ 400.000
Year 4 $ 475.000
Which of the following is the correct calculation of project Sigma's IRR? a.41.00% b.36.90% c.34.85% d.38.95%
The IRR (Internal Rate of Return) of project Sigma is 38.95%. Therefore, the correct option is D.
To calculate the IRR (Internal Rate of Return), we can use the following steps:1. Set the NPV (Net Present Value) equation to zero, which includes the initial investment and the discounted cash flows for each year.
0 = -$750,000 + ($350,000 / (1 + IRR)^1) + ($475,000 / (1 + IRR)^2) + ($400,000 / (1 + IRR)^3) + ($475,000 / (1 + IRR)^4)
2. Solve for the IRR using trial and error, a financial calculator, or software such as Excel's IRR function.
After calculating the IRR using any of these methods, you will find that IRR (Internal Rate of Return) is 38.95%.
Hence, the correct calculation of project Sigma's IRR is option D: 38.95%.
Learn more about IRR:
https://brainly.com/question/7920964
#SPJ11
Question 11 (2.5 points) Which risk management strategy is illustrated by the size of your deductible? A) Avoiding the risk B) Reducing the Risk C) Accepting the Risk D) Shifting the Risk E) Denying the risk
The risk management strategy illustrated by the size of your deductible is c) "Accepting the Risk."
A deductible is the amount of money you are responsible for paying before your insurance policy starts covering the remaining costs. By choosing a higher deductible, you are agreeing to take on more financial responsibility in the event of a loss or damage. This means that you are accepting the risk of a potential loss or damage up to the amount of the deductible.
Accepting the risk is a risk management strategy where an individual or organization acknowledges the potential for a loss or damage and decides to bear the financial consequences of that risk rather than transferring it to an insurance company or another party. By accepting the risk, an individual or organization is effectively self-insuring for that risk up to a certain amount.
In summary, the size of your deductible illustrates the risk management strategy of accepting the risk.
Option c is answer.
You can learn more about risk management strategy at
https://brainly.com/question/13760012
#SPJ11
which non-customers typically are aware of your product, but don't use it because either it's unacceptable, or they can't afford it?
The second-tier customers are aware of your product, but don't use it because either it's unacceptable, or they can't afford it
A set of potential consumers who are second tier customers are those who are aware of the product but do not utilise it either because they find it unsatisfactory or they cannot afford it. These clients could be somewhat interested in the goods, but they are unable or unwilling to purchase it at current price or under the present circumstances.
Due to this, businesses might need to modify their pricing and marketing plans in order to appeal to this segment of potential clients. This could entail making the product better to make it more desirable or cheaper to make it more accessible. Companies could also need to resolve issues and think about other marketing platforms or messaging. Businesses may grow revenues and their client base by focusing on second tier customers.
Read more about customers on:
https://brainly.com/question/15096946
#SPJ4
which statement below is true of central banks? they are introduced when consumers lose confidence in the bank or the system as a whole. they were developed by the founding fathers in order to ensure strict banking practices. they allow a bank to loan out money to other banks. they have a variety of tools that can be used to control the money supply
The statement below is true of central banks they were developed by the founding fathers in order to ensure strict banking practices.
Quizlet: What responsibilities do central banks have?The central bank offers the Central Government services. On behalf of the government, it both collects and makes payments to other parties. It looks after and manages government deposit accounts. The central bank also offers loans and controls the nation's debt.
What was the first actual central bank, when was it established, and what impact did it have on banking?The main goal of the Federal Reserve, which was established in 1913 by an act of Congress, was to increase the stability of the American financial system.
To Know more about Federal Reserve,
https://brainly.com/question/23247429
#SPJ1
a(n) ______________ advances the insertion point to the beginning of the next physical line.
A(n) "hard return" or "carriage return" advances the insertion point to the beginning of the next physical line. A hard return is a character inserted into a document or text field that tells the computer to start a new line or paragraph.
A hard return is a type of line break that is created when the "Enter" key is pressed on a computer keyboard. It is called a "hard" return because it creates a physical break in the text and moves the cursor or insertion point to the next line. Hard returns are commonly used in documents and other types of text to create paragraphs, headings, and other formatting elements. In contrast, a soft return, also known as word wrap, is a feature that automatically moves text to the next line when the end of the line is reached without requiring the user to manually insert a hard return. Soft returns are commonly used in word processing programs and other software applications to make text more readable and to ensure that it fits within the available space. Hard returns and soft returns serve different purposes and are used in different contexts, but they both play an important role in creating well-formatted and easily readable text.
Learn more about insertion here:
https://brainly.com/question/30667459
#SPJ11
A "carriage return" advances the insertion point to the beginning of the next physical line.
A carriage return, sometimes known as a cartridge return and often shortened to CR, <CR> or return, is a control character or mechanism used to reset a device's position to the beginning of a line of text. It is closely associated with the line feed and newline concepts, although it can be considered separately in its own right.
Originally, the term "carriage return" referred to a mechanism or lever on a typewriter. For machines where the type element was fixed and the paper held in a moving carriage, this lever was on the left attached to the moving carriage, and operated after typing a line of text to cause the carriage to return to the far right so the type element would be aligned to the left side of the paper. The lever would also usually feed the paper to advance to the next line.
Learn more about carriage return here: https://brainly.com/question/30506107
#SPJ11
f fixed costs are $400,000 and the unit contribution margin is $20, the amount of units that must be sold in order to have a zero profit is a. 400,000 units b. 25,000 units c. 10,000 units d. 20,000 units
The amount of units that must be sold in order to have a zero profit is 20,000 units. So, the correct answer is D.
How to determine the number of unitsTo calculate the number of units that must be sold in order to have a zero profit, we can use the formula: Breakeven Point (units) = Fixed Costs / Unit Contribution Margin
Substituting the given values, we get:
Breakeven Point (units) = $400,000 / $20 = 20,000 units
Therefore, the correct answer is d. 20,000 units.
This means that the company needs to sell at least 20,000 units to cover all its fixed costs and variable costs and break even. If the company sells less than 20,000 units, it will incur a loss.
On the other hand, if it sells more than 20,000 units, it will make a profit, which can be calculated by subtracting the total variable costs from the total revenue.
Learn more about unit contribution margin at
https://brainly.com/question/30882219
#SPJ11
What is the advantage of using common sized financial statements over those denominated in the currency of the country in which the corporation is incorporated?
A. The analyst no longer has to know anything about the foreign exchange rate of one company to another.
B. Common sized statements are easier to compare with other like companies.
C. None of the above.
D. Common sized statements do not consider accrual accounting principles.
E. Common size statements are required by GAAP, but not IFRS. Common size statements are required by GAAP, but not IFRS.
The advantage of using common-sized financial statements over those denominated in the currency of the country in which the corporation is incorporated is B. common-sized statements are easier to compare with other like companies.
Common-sized financial statements express each line item as a percentage of a key financial figure, such as revenue or total assets, which makes it simple to analyze and compare the financial performance and structure of different companies, regardless of their size or the currency they operate in. This standardized format allows analysts to quickly identify trends, evaluate efficiency, and compare a company's performance against industry benchmarks or competitors, without needing to know the foreign exchange rate.
However, it is important to note that common-sized statements do not replace the need for a thorough understanding of a company's financial health and the underlying factors that influence its performance. The advantage of using common-sized financial statements over those denominated in the currency of the country in which the corporation is incorporated is B. common-sized statements are easier to compare with other like companies.
Learn more about revenue at:
https://brainly.com/question/21639689
#SPJ11
4) For mutual funds, a Balanced Growth and Income Fund contain both growth stocks and stocks that pay high dividends. This type of fund__________________________________________.
a) focuses on firms that pay a high level of dividends with less focus on growth.
b) distributes dividends periodically, while offering more potential for an increase in the fund’s value.
c) focuses on firms that are more established than small-cap firms but may have less growth potential.
d) focuses on stocks that have potential for above-average growth.
e) attempts to mirror the movements of an existing equity index.
For mutual funds, a Balanced Growth and Income Fund contain both growth stocks and stocks that pay high dividends. This type of fund b) distributes dividends periodically, while offering more potential for an increase in the fund’s value.
Balanced Growth and Income Funds typically invest in large-cap stocks that are more established than small-cap firms but still have some growth potential. These funds may also invest in bonds or other fixed-income securities to further diversify the portfolio and reduce risk.
The main advantage of a Balanced Growth and Income Fund is that it offers investors both growth potential and regular income. The fund distributes dividends periodically, which can provide a steady stream of income for investors. At the same time, the fund also offers potential for an increase in the fund's value through investments in growth stocks.
Overall, a Balanced Growth and Income Fund can be a good option for investors who want a balanced portfolio of growth and income investments. However, it's important to carefully consider the fund's investment objectives, fees, and historical performance before investing.
Therefore, the correct answer is b) distributes dividends periodically, while offering more potential for an increase in the fund’s value.
Learn more about Balanced Growth here: https://brainly.com/question/29846283
#SPJ11
plaza sunset purchased a new building for $910,000 on october 31, 2021. annual depreciation on the building is $36,000. calculate the net book value of the building that will appear on the december 31, 2022 balance sheet.
The net book value of the building on the December 31, 2022 balance sheet will be $868,000.
How to calculate the net book valuePlaza Sunset purchased a new building for $910,000 on October 31, 2021. The annual depreciation for the building is $36,000.
To calculate the net book value of the building that will appear on the December 31, 2022 balance sheet, we need to consider the depreciation for both 2021 and 2022. In 2021, there are 2 months (November and December) in which depreciation occurs.
The monthly depreciation is $36,000 / 12 months = $3,000 per month. Therefore, the depreciation in 2021 is $3,000 * 2 months = $6,000. In 2022, the entire annual depreciation of $36,000 applies.
The total depreciation from October 31, 2021 to December 31, 2022 is $6,000 (2021) + $36,000 (2022) = $42,000.
To find the net book value on December 31, 2022, we subtract the total depreciation from the purchase price:
$910,000 - $42,000 = $868,000.
Learn more about net book value at
https://brainly.com/question/30034948
#SPJ11
Assume Highline Company has just paid an annual dividend of $1.03. Analysts are predicting an 10.9% per year growth rate in earnings over the next five years. After then, Highline's earnings are expected to grow at the current industry average of 4.9% per year. If Highline's equity cost of capital is 7.7% per year and its dividend payout ratio remains constant, for what price does the dividend-discount model predict Highline stock should sell? The value of Highline's stock is $ (Round to the nearest cent.)
The price predicted by the dividend-discount model for Highline's stock is $34.41.
Using the dividend-discount model, the value of Highline's stock can be calculated as follows:
PV = D1/(r-g)
where:
PV = Present value of stock
D1 = Expected dividend one year from now
r = Equity cost of capital
g = Expected growth rate of dividends
To find D1, we need to calculate the expected dividend for next year based on the current dividend and the expected growth rate:
D1 = D0 x (1 + g) = $1.03 x (1 + 0.109) = $1.1397
where:
D0 = Current dividend
Next, we can substitute the values into the formula:
PV = $1.1397 / (0.077 - 0.049) = $34.41
Therefore, the dividend-discount model predicts that Highline's stock should sell for $34.41.
To know more about dividend-discount model, refer here:
https://brainly.com/question/15565934#
#SPJ11
Carnes Cosmetics Co.'s stock price is $55, and it recently paid a $1.so dividend. This dividend is expected to grow by 21% for the next 3 years, then grow forever at a constant rate, 9; and ts - 14%. At what constant rate is the stock expected to grow after Year 3? Do not round intermediate calculations. Round your answer to two decimal places.
Answer:
The constant growth rate after Year 3 is expected to be 9.65%.
Explanation:
To calculate the constant growth rate after year 3, we can use the dividend discount model.
First, we need to calculate the dividend per share at the end of each of the next three years:
Year 1 dividend = $1.00 x (1 + 21%) = $1.21
Year 2 dividend = $1.21 x (1 + 21%) = $1.46
Year 3 dividend = $1.46 x (1 + 21%) = $1.77
Next, we need to calculate the expected price of the stock after three years, which is the present value of all future dividends:
PV = D1 / (1 + r) + D2 / (1 + r)^2 + D3 / (1 + r)^3 + P3 / (1 + r)^3
where D1, D2, and D3 are the dividends for the next three years, P3 is the expected stock price at the end of Year 3, and r is the required rate of return.
Assuming a required rate of return of 14%, we can solve for P3:
P3 = (1.77 x 1.21 x 1.14^2 + 1.77 x 1.14^2 + 55) / (1 + 0.14)^3
P3 = $59.06
Finally, we can use the Gordon growth model to calculate the constant growth rate after Year 3:
P3 = D4 / (r - g)
59.06 = 1.77 x (1 + g)^3 / (0.14 - g)
Solving for g, we get:
g = 9.65%
For more such questions on growth rate, click on:
https://brainly.com/question/24841216
#SPJ11
Your Group is the SAME group you had for the Biz Café simulation. Your assignment will consist of two items: 1. A ppt Presentation: Create an 8-10 slide presentation (not including your cover and reference slide) outlining your business experience and upload to Schoology 2. A Report: Write a 4-5-page report, double spaced, of how the course material helped you run your Biz Cafe business. Discuss your management approach and the lessons you learned. Include your decision-making reasoning regarding marketing, operations, human resources, and control strategies. Include: . .
Your company business name/logo and how you came up with it. Financials: Income statement and Balance Sheet Weekly decisions and special decisions. How did you decide? What were the outcomes. Positive/negative, explain results. What were the mistakes? Explain what is important for a business to be successful. Be creative and include photos, charts, animation, etc. Reference all work correctly. IMPORTANT: "Upload your presentation and report to Schoology by the due date.
Answer:
Important for a business to be successful: Organize your thoughts, Be creative, Reference correctly, Proofread.
Explanation:
To add a great answer to this question:
Understand the assignment requirements: Read the prompt carefully and understand the requirements for the presentation and report. Make sure you know the length, format, and content requirements for each item.
Organize your thoughts: Before you start writing, organize your thoughts and ideas. Make an outline of the key points you want to cover in your presentation and report. This will help you stay focused and ensure that you cover all the required topics.
Use examples and evidence: Use examples and evidence to support your arguments and ideas. For instance, use financial statements to show the financial health of your business, and use specific examples to illustrate your decision-making process and the outcomes of your decisions.
Be creative: Use visuals, charts, animations, and other creative elements to make your presentation and report engaging and memorable. Use your company logo and branding to make your presentation and report visually appealing.
Reference correctly: Make sure you reference all your sources correctly, using the appropriate citation style. Avoid plagiarism by using your own words and citing sources whenever you use someone else's ideas or work.
Proofread: Before submitting your presentation and report, proofread them carefully to ensure that they are free of errors, typos, and other mistakes. Ask a friend or colleague to review them as well to get a fresh perspective.
you can create a great answer to this question that meets all the assignment requirements and demonstrates your knowledge and skills in business management.
For more such questions on business, click on:
https://brainly.com/question/24553900
#SPJ11
Your broker charges $0.0028 per share per trade. The exchange charges $0.0167 per share per trade for removing liquidity and credits $0.0149 per share per trade for adding liquidity. The current best BID price for stock XYZ is $81.77 per share, while the current best ASK price is $81.78 per share. You post an order to buy XYZ at the current best BID price and wait. Shortly after, the best BID and ASK prices move lower (down) by one cent each. Your buy order is executed. Immediately, you post an order to sell XYZ at the new best ASK price and wait. Shortly after, the best BID and ASK prices move higher (up) by one cent each. Your sell order is executed. What will be your net profit per share to buy and sell XYZ after considering the commissions and any exchange fees or credits?
The net profit per share for buying and selling XYZ after considering the commissions and exchange fees/credits is $0.0024.
How to calculate the net profit per share?To calculate the net profit per share, we need to consider the following costs and revenues:
Broker commission: $0.0028 per share per trade
Exchange fee for removing liquidity: $0.0167 per share per trade
Exchange credit for adding liquidity: $0.0149 per share per trade
Let's first calculate the total cost of buying and selling one share of XYZ:
Buying cost: $81.77 (BID price) + $0.0028 (broker commission) + $0.0167 (exchange fee for removing liquidity) = $81.7895
Selling revenue: $81.78 (ASK price) - $0.0028 (broker commission) + $0.0149 (exchange credit for adding liquidity) = $81.7919
The net profit per share is the difference between the selling revenue and buying cost:
Net profit per share = Selling revenue - Buying cost = $81.7919 - $81.7895 = $0.0024
Therefore, the net profit per share for buying and selling XYZ after considering the commissions and exchange fees/credits is $0.0024.
Learn more about net profit
brainly.com/question/20023069
#SPJ11
1. A bank has a $1 million market value position in a 6-year, zero coupon bond. The bond is yielding 8%. The mean change in the daily yields of the 6-year, zero coupon bond has been 2 basis points over the past year with a standard deviation of 10 basis points. Using these data and assuming the yield changes are normally distributed:
(a) What is the highest yield change expected if a 99 percent confidence level is required?
(b) What is the daily earnings at risk ( DEAR ) using a 99 percent confidence level?
(c) Please interpret in words the meaning of the DEAR you calculated in part (b).
(a) The highest yield change expected at a 99% confidence level can be calculated using the formula:
Highest yield change = Mean yield change + Z-score * Standard deviation
Here, the Z-score at a 99% confidence level is 2.33 (obtained from a standard normal distribution table). Plugging in the values, we get:
Highest yield change = 2 basis points + 2.33 * 10 basis points = 23.3 basis points
(b) The daily earnings at risk (DEAR) can be calculated using the formula:
DEAR = Market value of bond * Highest yield change * (-1)
Plugging in the values, we get:
DEAR = $1 million * 23.3 basis points * (-1) = -$2,330
(c) The DEAR calculated in part (b) represents the potential daily loss that the bank may incur due to changes in the yield of the 6-year, zero coupon bond. Specifically, if the yield of the bond were to increase by the highest expected change (23.3 basis points), the market value of the bond would decrease by $2,330.
This highlights the importance of managing interest rate risk and having adequate risk management strategies in place to mitigate potential losses.
To know more about yield refer here:
https://brainly.com/question/2506978#
#SPJ11
for 2019, Goodwater company reported 2.74 of earnings per shareof common stock. During 2020, the firm had a 5% common stockdividend. The 2019 earnings per share to be reported in the annualreport o f 2020A. 1.70B. 2.61C. 1.90D. 1.82
The 2019 earnings per share to be reported in the 2020 annual report is 2.61. Therefore, the correct option is B.
To find the adjusted 2019 earnings per share to be reported in the annual report of 2020, we need to consider the impact of the 5% common stock dividend on the 2019 earnings per share.
In order to calculate the 2019 earnings per share, follow these steps:1. Determine the 2019 earnings per share: 2.74
2. Calculate the impact of the 5% common stock dividend: 2.74 * 0.05 = 0.137
3. Subtract the impact of the dividend from the original earnings per share: 2.74 - 0.137 = 2.603
Therefore, The 2019 earnings per share to be reported in the annual report of 2020 is approximately 2.61 which corresponds to the option B.
Learn more about Earnings per share:
https://brainly.com/question/30074795
#SPJ11
which of the following is not a component of the dupont analysis? a. asset turnover b. profit margin c. debt-to-equity ratio d. equity multiplier
The equity multiplier is not a component of the Dupont Analysis. The equity multiplier is a financial ratio used to measure the amount of leverage a company is using.
It is calculated by dividing a company’s total assets by its total equity. The Dupont Analysis, on the other hand, is used to analyze a company’s financial performance. It does this by breaking down return on equity into three components: return on assets, asset turnover, and equity multiplier.
The equation for the Dupont analysis is ROE = (Net Profit/Sales) x (Sales/Assets) x (Assets/Equity). By breaking down return on equity into these three components, the Dupont analysis allows investors to gain a better understanding of a company’s financial performance.
Know more about equity multiplier here
https://brainly.com/question/30636971#
#SPJ11
In terms of capital budgeting, a project's risk can be looked at on three levels. What are they?
There are three types of capital-budgeting risk: (Select from the drop-down menus.) 1. The project's ___ which is a project's nisk ignoring the fact that much of this risk will be diversified away as the project is combined with the firm's other projects 2. The project's ___ which is the amount of risk that the project contributes to the firm as a whole. 3. The project's ____ which is the risk of the project from the viewpoint of a well-diversified shareholder,
There are three types of capital-budgeting risk which are The project's standalone risk, The project's corporate risk and The project's market risk.
1. The project's standalone risk which is a project's nisk ignoring the fact that much of this risk will be diversified away as the project is combined with the firm's other projects This is the risk associated with the project if it were to be considered in isolation, without any consideration of the company's other projects.
The project's corporate risk which is the amount of risk that the project contributes to the firm as a whole. This is the risk that the project contributes to the overall risk of the company. It takes into account factors such as the project's correlation with other projects in the company's portfolio, the impact of the project on the company's cash flows, and the effect of the project on the company's cost of capital.
The project's market risk which is the risk of the project from the perspective of a well-diversified shareholder. It takes into account the market risk associated with the project, which is the risk that cannot be diversified away by a shareholder. This risk is affected by factors such as the project's beta, the volatility of the project's cash flows, and the project's correlation with other assets in the market.
To know more about capital-budgeting click here
brainly.com/question/28304454
#SPJ11
an administered vertical marketing system is best represented by which of the following programs? group of answer choices everett clinic, which operates more than 25 clinic sites beyond its main location in everett, washington teladoc, a web-based provider of physician consults the urgent care center at o'hare, which is run by the university of illinois health system the hospital for special surgery in new york, which operates facilities in florida and on long island
This example demonstrates a healthcare organization overseeing and coordinating various facilities under one centralized administration, fitting the concept of an administered vertical marketing system.
An administered vertical marketing system is best represented by the hospital for special surgery in New York, which operates facilities in Florida and on Long Island. This is because an administered vertical marketing system involves a single entity (in this case, the hospital for special surgery) that owns multiple levels of the distribution chain, such as manufacturing, distribution, and retailing.
In this case, the hospital for special surgery owns and operates facilities in multiple locations, making it an example of an administered vertical marketing system. The Everett Clinic, Teladoc, and the urgent care center at O'Hare are not examples of administered vertical marketing systems.
Read more about organization here:https://brainly.com/question/19334871
#SPJ11
what is it called when a diversified company can add value by shifting capital from business units generating free cash flow to those needing additional capital to expand and realize their growth potential?
When a diversified company can add value by shifting capital from business units generating free cash flow to those needing additional capital to expand and realize their growth potential, this is called capital allocation or capital reallocation.
It involves identifying the various business units of a diversified company and analyzing their individual performance. Business units that generate significant cash flows can be identified and their resources redirected towards the underperforming units that need additional capital to grow. Effective capital allocation can help optimize the overall performance of a diversified company, enhance shareholder value, and increase overall profitability.
You can learn more about free cash flow at
https://brainly.com/question/15848997
#SPJ11
According to the Accounting: The Language of Business video, managerial accounting reports can be put together with more _____ because they're just intended for people inside the company.
According to the Accounting: The Language of Business video, managerial accounting reports can be put together with more detail and specificity because they are intended for internal use within the company.
Unlike financial accounting reports, which are prepared for external users such as investors and creditors, managerial accounting reports are designed to help management make informed decisions about the business.
These reports can include information on budgeting, cost analysis, performance metrics, and other key indicators that are essential for effective decision-making. Because they are not subject to the same regulatory requirements as financial accounting reports, managerial accounting reports can be customized to fit the specific needs of the company and its management team. This flexibility allows for greater detail and specificity in the reporting process, which can be crucial in identifying areas of the business that require improvement or investment.
Overall, the purpose of managerial accounting reports is to provide accurate, relevant, and timely information to management, so they can make informed decisions about the company's future. By tailoring these reports to the unique needs of the company and its management team, businesses can gain a competitive advantage and stay ahead of the curve in an ever-changing business environment.
For more such questions on Accounting reports.
https://brainly.com/question/30033251#
#SPJ11