The credit decision usually has to deal with high-risk customers
with no repeat order. To adjust this risk potential, company
should:
speed up approvals to these clients.
determine the break-even

The statement "In the affiliate revenue model, firms generate revenue by promoting and selling products or services through partner e-commerce sites" is false. The revenue is earned through commissions or a percentage of the sale made through the affiliate link.

The model is based on performance-based marketing, where the affiliate earns a commission only if a sale or lead is generated through their referral.

The affiliate revenue model has become increasingly popular in recent years as it provides a cost-effective way for firms to expand their reach and increase sales without having to invest in expensive marketing campaigns.

E-commerce sites benefit from this model as well by earning commissions on sales they wouldn't have otherwise made without the help of the affiliate.

In summary, the affiliate revenue model is a win-win situation for both firms and e-commerce sites, as it allows them to increase revenue and expand their customer base without incurring significant costs.

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The stage in which the customer begins thinking about repurchasing, trading in, or dismissing old products is the post-purchase evaluation stage, which is the fourth and final stage in the customer service life cycle.

In this stage, the customer evaluates their satisfaction with the product or service and considers whether they would purchase it again or recommend it to others. The post-purchase evaluation stage is crucial for building customer loyalty and can lead to repeat business and positive word-of-mouth advertising.

Companies should strive to ensure that their customers are satisfied and happy with their purchase in order to encourage future purchases and customer loyalty.

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I am interested in Amazon because of its remarkable growth and leadership in the technology industry, its innovative culture, and its customer obsession. I believe that Amazon will continue to shape the future of e-commerce and technology, and I am excited to see what the company will achieve in the years to come.

The company I am interested in is Amazon.com, Inc. (NASDAQ: AMZN), a multinational technology giant that specializes in e-commerce, cloud computing, digital streaming, and artificial intelligence. I am interested in Amazon because it is one of the most innovative and customer-centric companies in the world, known for disrupting traditional industries and continuously expanding its offerings.

Amazon is an American company based in Seattle, Washington, and was founded by Jeff Bezos in 1994. I know that Amazon is not newly listed because it has been listed on the NASDAQ since 1997, and has a continuous history of financial reports for the past three years. According to Forbes, Amazon is currently the second-largest company in the world, with a market capitalization of over $1.6 trillion as of April 2023.

I accessed Amazon's investor relations website to verify their financial reports and metrics. Amazon's investor website can be found at https://ir.aboutamazon.com/. Here, investors can find the company's SEC filings, annual reports, and other financial information.

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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.

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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.

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Answer: To record the write-off of a customer's account balance of $3,400 on February 1 using the allowance method,  following journal entry should be made:

1. Debit "Allowance for Doubtful Accounts" for $3,400.
2. Credit "Accounts Receivable" for $3,400.

This entry reduces both the Allowance for Doubtful Accounts and Accounts Receivable by the uncollectible amount, maintaining the accuracy of your financial records.

What is Allowance for Doubtful Accounts? These accounts are contra accounts( i.e., where entry is recorded when debit and credit affect the same parent account, resulting in net zero effect on account), that nets against the total receivable presented on balance sheet to reflect only the amount that is expected to be paid. It estimates the percentage of accounts receivable that are expected to be uncollectible. Although, the actual payment behavior of customers may differ from the estimate.

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Based on the information provided and without the actual table or statistics, Marginal means refer to the average value of a variable while controlling for the other variables in a study.

1. Identify the variables in the study and their marginal means.
2. Compare the marginal means of each variable.
3. Analyze any differences or trends observed in the marginal means.
4. Draw conclusions based on the observed differences or trends, considering the context of the study.

By following these steps, you can interpret the findings of a study based on the marginal means of the variables involved. It's important to note that these expectations are hypothetical and speculative, as actual findings would require proper statistical analysis using appropriate methods, including significance testing, consideration of sample size, variability, and other relevant factors.

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The term that refers to the timed releases of films to different outlets such as domestic theaters, pay channels, and video rental is commonly known as "film distribution."

Film distribution is the process of making a movie available to the public through various channels, including theaters, digital streaming, DVD/Blu-ray rentals, & pay-per-view services.

Distributors work with movie studios and filmmakers to ensure that a film is released & marketed effectively, reaching the widest possible audience.

After the theatrical release, the movie may be released on home video formats, such as DVD or Blu-ray. This is often referred to as the "home entertainment" phase of distribution.

During this phase, the movie may also become available on digital platforms, such as streaming services or pay-per-view channels.

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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%

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The given statement "flexible manufacturing uses computers to direct machinery to adapt to different versions of similar operations" is true because flexible manufacturing systems use computer control to direct machinery to adapt to different versions of similar operations.

Flexible manufacturing uses computers and automation to enable machinery to adapt and produce a variety of products and components, even in small quantities, without having to reconfigure the production line or invest in new equipment. This approach allows for efficient and cost-effective production of customized products, which is particularly important in industries such as aerospace, automotive, and electronics.

The use of computer-aided design (CAD) and computer-aided manufacturing (CAM) technologies facilitates the quick and precise programming of the machinery to perform specific tasks and changeover operations. Overall, flexible manufacturing helps companies increase productivity, improve quality, and respond more effectively to changing customer demands.

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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.

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The company's current cost of debt, which is the cost of the bond, is 4.875%. This means that the company has to pay 4.875% of the bond's face value annually as an after-tax interest expense to maintain its debt financing.

To calculate the company's current cost of debt using the given terms, follow these steps:
1. A bond has a coupon rate of 7.0%, which means the bond pays 7% of its face value annually as interest.
2. The bond expires in 10 years, so it has a maturity of 10 years.

3. The yield on the bond is 7.5%, which is the rate of return that investors require for holding this bond.
4. The company's tax rate is 35.0%, which affects the after-tax cost of debt.
5. To calculate the company's current cost of debt (the cost of the bond), you first need to determine the after-tax yield on the bond. You can do this by multiplying the bond's yield by (1 - tax rate). In this case, 7.5% x (1 - 0.35) = 7.5% x 0.65 = 4.875%.

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Fortune Brands should use the WACC (weighted average cost of capital) for the Titliest Golf division as the appropriate discount rate for an average risk project within that division. The correct option is C.

This is because the WACC (weighted average cost of capital) reflects the required rate of return for all capital invested in a particular division or project, taking into account the relative weights of each component of capital. The corporate WACC may not be appropriate for a division-level project as the risks and cost of capital may vary across different divisions.

Similarly, using a rate slightly higher or lower than the appropriate WACC for the Titliest Golf division may not be accurate. Adjusting the WACC may also not be appropriate without a clear rationale or methodology. Therefore, the most appropriate option is to use the WACC for the Titliest Golf division, which is option C.

Which of the following should Fortune Brands use as the WACC for an average risk project within its Titliest Golf division?

a. Fortune Brands corporate WACC.

b. A rate slightly higher than Fortune Brands corporate WACC.

c. Titliest Golf's divisional WACC.

d. A rate slightly lower than Titliest Golf's divisional WACC. Adjusting WACC

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The stock of Gonzales Food Stores is currently privately owned since it is a closely held corporation, meaning it has a limited number of shareholders, primarily consisting of family members. This would involve issuing shares to the general public through an initial public offering (IPO).

Advantages of going public include:
1. Access to a larger pool of capital to fund the expansion
2. Increased visibility and credibility in the market
3. Easier access to future financing through the issuance of additional shares or debt securities
4. Increased liquidity for shareholders, allowing them to sell their shares more easily

Disadvantages of going public include:
1. Loss of control for the family members as outside investors purchase shares
2. Increased regulatory requirements and scrutiny, leading to higher administrative and compliance costs
3. Pressure from shareholders to maintain consistent financial performance
4. Potential dilution of ownership for existing shareholders

To ensure that the family retains control of the company, they may consider issuing different classes of shares, with the family retaining shares with greater voting rights. This will allow them to maintain control while still raising the necessary capital through the stock sale.

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The risk that a misrepresentation will occur in an assertion and will not be prevented, recognized, or corrected on time by the entity's internal control is referred to as "control risk."

The danger of a major misstatement in an assertion that is not prevented, discovered, or corrected by the entity's internal control system is known as the control risk.

Auditors evaluate the efficacy of an organization's internal controls, which are the systems and procedures in place to help assure financial reporting accuracy and compliance with laws and regulations. A high level of control risk raises the possibility that an auditor will need to do more substantive testing to assure financial statement correctness.

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Spring Clean, Sparkle Glass, and Dazzle Floor are various cleaning liquids marketed under the brand name "Clean Homes." Therefore Clean Homes" is a brand name or a brand that offers a range of cleaning products.

A brand is a name, term, design, symbol, or other feature that distinguishes a product or service from its competitors. By using a brand name, companies can create an identity and reputation for their products or services, and differentiate themselves from their competitors in the marketplace. The Clean Homes brand name suggests that the products offered are designed to provide a clean and sparkling home.Brand names are an essential aspect of marketing, and they serve as a valuable tool for companies to build customer loyalty and increase brand awareness. Companies often spend significant resources on developing and promoting their brand names, as they can significantly impact customer perception and purchasing decisions.

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Spring clean, sparkle glass, and dazzle floor are various cleaning liquids marketed under the brand name clean homes. therefore, clean homes is a cleaning. A brand is anything that sets a product or service apart from its rivals.

Various cleaning solutions sold under the name "Clean Homes" include Spring Clean, Sparkle Glass, and Dazzle Floor. As a result, "Clean Homes" refers to a company that sells a variety of cleaning supplies. A brand is anything that sets a product or service apart from its rivals, including names, terms, designs, symbols, and other features.

Companies can distinguish themselves from rivals in the market by adopting a brand name to build an identity and reputation for their goods or services. The products under the Clean Homes brand name are ostensibly made to give a spotless house.Brand names are a crucial component of marketing and a useful tool for businesses to develop consumer loyalty and raise brand awareness. As brand names have a substantial impact on consumer perception and purchasing behaviour, businesses frequently invest significant resources in creating and promoting them.

Complete question:

spring clean, sparkle glass, and dazzle floor are various cleaning liquids marketed under the brand name clean homes. therefore, clean homes is a__________.

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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.

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The net book value of the building on the December 31, 2022 balance sheet will be $868,000.

Plaza 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.

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The net profit per share for buying and selling XYZ after considering the commissions and exchange fees/credits is $0.0024.

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.

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To rebalance a portfolio, the proportion of any asset should be adjusted to match the desired allocation. For example, if the desired allocation is 50 percent stocks and 50 percent bonds, then the portfolio should be rebalanced to reflect that.

In this case, if one-year, 8 percent zero-coupon bonds are available, then the portfolio should be rebalanced to include an appropriate proportion of these bonds.

The exact proportion will depend on the desired allocation for bonds, as well as the current proportions of cash, stocks, and other bonds in the portfolio. For example, if the desired allocation is 50 percent bonds, and the current proportion of bonds is 40 percent, then the portfolio should include 10 percent zero-coupon bonds in order to achieve the desired allocation.

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Answer: For firms that are selling a product that serves universal needs and that do not face significant competition, a monopoly strategy makes sense. This allows the firm to control the market and set prices as they please without having to worry about competition driving down prices. However, it is important to note that this strategy may not be sustainable in the long run as it may lead to government intervention and regulation to prevent abuse of market power. Additionally, the emergence of new technologies or substitutes may threaten the firm's monopoly position in the future.

Explanation: When a firm is selling a product that serves universal needs and has no significant competition, it can gain a monopoly position in the market. This allows the firm to set high prices and enjoy high profits, as consumers have no other options but to buy from the firm. Such a strategy can be lucrative for the short term, but it also comes with risks.

One risk is government intervention and regulation to prevent abuse of market power. When a firm has a monopoly position, it can abuse its power to charge unfair prices and limit competition, which can harm consumers and the overall economy. To prevent such abuse, governments may impose regulations or antitrust laws to ensure that firms with market power behave fairly and do not harm consumers or competitors.

Another risk is the emergence of new technologies or substitutes that can threaten the firm's monopoly position in the future. For example, the rise of e-books has disrupted the publishing industry, challenging the monopoly position of traditional publishers. Similarly, the emergence of renewable energy sources has disrupted the fossil fuel industry. Therefore, firms with a monopoly position must be aware of the potential threats from new technologies and competitors and adapt accordingly to remain competitive.

The current value of the bond can be calculated using the present value formula:

PV = (C / (1 + r/n)^(nt)) + (FV / (1 + r/n)^(nt))

Where:

PV = Present value of the bond

C = Coupon payment (5% of $1,000 = $50)

r = Required rate of return (7%)

n = Number of compounding periods per year (2, since interest is paid semiannually)

t = Number of years until maturity (12)

Plugging in the values, we get:

PV = (50 / (1 + 0.07/2)^(212)) + (1000 / (1 + 0.07/2)^(212))

PV = $609.65

Therefore, the current value of the bond is $609.65.

To calculate this using a calculator such as the TI BAII Plus, we would enter:

N = 24 (2 compounding periods per year for 12 years)

I/Y = 3.5 (7% annual rate divided by 2 compounding periods per year)

PMT = 25 (5% coupon payment semiannually on $1,000 par value)

FV = 1000 (par value at maturity)

And then press the PV button to get the present value of $609.65.

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The total amount due on all accounts is taken into consideration when establishing a credit score. By dividing the entire amount of outstanding balances by the aggregate credit limit across all accounts, credit utilization—also known as credit use—is computed.

Another factor that is considered in calculating a credit score is the total amount of debt owed on all accounts. This is known as credit utilization and is calculated by dividing the total amount of outstanding balances by the total credit limit across all accounts. A high credit utilization ratio can negatively impact a credit score, while a lower ratio can have a positive effect. It is important to maintain a good payment history, have a mix of different types of accounts, and keep credit utilization low in order to maintain a healthy credit score.

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The work stoppage is labor's most often used tactic to force management back to the bargaining table. A work stoppage is a temporary halt in work, usually initiated by workers or a labor union, to express dissatisfaction with working conditions, wages, or other employment-related matters.

Unlike speedups, which involve increasing the pace of work to achieve more output, and slowdowns, which involve deliberately reducing productivity, a work stoppage halts production altogether. This can put significant pressure on management to address the workers' concerns and negotiate a resolution.

A work stoppage can take various forms, such as a strike or a walkout, and can be planned or spontaneous. The goal of this tactic is to compel management to return to the bargaining table and engage in good-faith negotiations. By disrupting the normal flow of work, the workers are able to demonstrate their collective power and the importance of their labor to the organization.

However, it is important to note that work stoppages can also have negative consequences for both the workers and the organization. Workers may lose wages during the stoppage, while the organization may suffer from the reduced output, lost revenue, and potential damage to its reputation.

Therefore, it is essential that both parties approach the bargaining table with a willingness to compromise and reach a mutually beneficial agreement.

In some cases, management may seek a legal remedy called an injunction, which is a court order prohibiting or compelling specific actions, such as ending a strike. This can further complicate the situation and may lead to legal battles between labor and management.

In summary, a work stoppage is labor's most often used tactic to force management back to the bargaining table, as it puts pressure on the organization to address workers' concerns and negotiate a resolution. This approach, however, should be used cautiously, considering the potential negative consequences for both parties.

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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.

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Weather derivatives are financial instruments that businesses and organizations can use to hedge against climate risks, minimizing their exposure to unpredictable weather events.

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The PVGO in 's Stock price is about $280.09.

To calculate the present value of growth opportunities (PVGO), we first want to calculate the intrinsic price of the stock using the dividend discount model (DDM):

Intrinsic cost = EPS / (r - g)

in which

EPS = profits according to share

r = market capitalization fee

g = predicted growth rate

given that does not pay any dividends, we are able to use the income in line with proportion (EPS) as a proxy for the dividend.

the use of the given information, we've got:

EPS = $26.5

r = 11.5%

share price = $745 according to proportion

To locate the expected growth charge (g), we will use the Gordon increase model:

percentage charge = (EPS * (1 + g)) / (r - g)

Rearranging the formula, we get:

g = (r * EPS - percentage fee * (r - 1)) / share price

Substituting the given values, we get:

g = (0.115 * $26.5 - $745 * (0.115 - 1)) / $745 = -0.105

The negative increase charge means that the marketplace expects the agency's profits to say no inside the future. this will occur because of various factors along with multiplied competition, adjustments in market situations, and so on.

Now, we can calculate the intrinsic value of the stock using the DDM formula:

Intrinsic price = EPS / (r - g) = $26.5 / (0.115 - (-0.one zero five)) = $464.91

In the end, we will calculate the PVGO by way of subtracting the intrinsic fee from the current inventory charge:

PVGO = proportion charge - Intrinsic value = $745 - $464.91 = $280.09

Consequently, the PVGO in 's inventory price is about $280.09.

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True, as long as the coefficient of correlation between two stocks is less than 1, some reduction in risk can be obtained by combining the securities.

The coefficient of correlation measures the degree to which two variables, in this case, the returns of two stocks, move together. It ranges from -1 to 1. A coefficient of 1 indicates a perfect positive correlation, meaning that the returns of both stocks move in the same direction all the time.

Conversely, a coefficient of -1 indicates a perfect negative correlation, meaning the returns move in opposite directions. A coefficient of 0 suggests no correlation between the returns of the stocks.

By diversifying a portfolio and combining two stocks with a coefficient of correlation less than 1, an investor can reduce their risk exposure. The reason for this is that when one stock performs poorly, the other stock might perform well, or at least not as poorly, thereby offsetting the overall negative effect.

This diversification helps to lower the overall risk in the portfolio as the fluctuations in the returns of the individual stocks will be partially offset by each other, thereby providing a smoother return profile for the investor.

In summary, combining two stocks with a coefficient of correlation less than 1 allows for a reduction in risk due to the diversification benefits, which help to smooth out the overall return profile of the combined securities.

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The required rate of return for the perpetuul preferred stock of eBook Farley Inc. can be calculated using the dividend discount model. This model takes into consideration the current market price of the stock and the expected dividend payment.

In this case, the market price of the stock is given as $38 per share and the dividend payment is $54.75 per share at the end of each year. To calculate the required rate of return, we can use the following formula:

Required Rate of Return = Dividend Payment / Market Price of Stock

Substituting the given values, we get:

Required Rate of Return = 54.75 / 38

Required Rate of Return = 1.44 or 144%

Therefore, the required rate of return for the perpetuul preferred stock of eBook Farley Inc. is 144%. This means that investors require a return of 144% on their investment in the stock to compensate for the risk they are taking.

It is important to note that the required rate of return may vary for different investors depending on their risk preferences, investment objectives, and other factors. Investors should carefully consider these factors before investing in any stock.

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In order to determine how many units must be purchased in September, the Schrank company must first calculate the required amount of inventory they must have on hand at the end of August.

This is done by taking 15% of the projected sales for September, or 54,000 units. This means that the company must have 8,100 units in inventory at the end of August (54,000 x 0.15). Therefore, the company must purchase at least 8,100 units in September in order to meet their desired inventory level.

This number will be adjusted if the actual sales for August exceed the projected sales amount. Additionally, the company must take into account any additional inventory needed to cover any unanticipated demand during the month of September.

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