Business customers are generally considered more rational in their purchasing behavior than ultimate consumers due to their objective evaluation, cost-benefit analysis, long-term perspective, and relationship building with suppliers.
Business customers and ultimate consumers differ in their purchasing behavior due to their different motives, needs, and goals. Business customers are purchasing for their organization, while ultimate consumers are purchasing for personal use.
As a result, business customers tend to be more rational in their purchasing behavior than ultimate consumers. Here are some reasons why: Objectivity: Business customers are usually purchasing for their organization's benefit, not for personal pleasure
Cost-benefit analysis: Business customers usually conduct cost-benefit analyses before making a purchase decision. Long-term perspective: Business customers tend to focus on the long-term benefits of a purchase rather than short-term gratification.
Relationship building: Business customers often develop ongoing relationships with their suppliers. They may consider factors such as reliability, responsiveness, and trustworthiness when making a purchase decision.
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richard earns $550 a week. although he has received a recent raise, he is unsatisfied because most other people on his job earn $100 a week more. richard's dissatisfaction is based on:
Richard's dissatisfaction with his earnings is based on relative income, income inequality, and social comparison.
What the dissatisfaction based on for this case?Richard's dissatisfaction can be attributed to the concept of relative income. Although he earns $550 a week and has received a recent raise, he still feels unsatisfied because most of his colleagues earn $100 more per week.
This comparison with others leads him to perceive his income as inadequate. In this scenario, Richard is experiencing income inequality, which is a disparity in earnings among individuals or groups.
Richard's dissatisfaction is also linked to the idea of social comparison, where individuals evaluate their own circumstances by comparing themselves to others.
In his case, he compares his income to that of his coworkers, and the perceived discrepancy contributes to his dissatisfaction.
Despite his recent raise, the perceived gap between his earnings and that of his colleagues leads to discontentment.
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as investors age, they tend to invest more in growth-oriented investments. true or false
False. As investors age, they tend to shift their investments from growth-oriented investments to more conservative, income-producing investments to reduce risk and ensure financial stability during retirement.
Additionally, as investors age, they may become more risk-averse and less willing to take on the volatility and uncertainty associated with growth-oriented investments like stocks. Growth-oriented investments are typically riskier than more conservative investments, and they may experience significant price swings in response to changes in the market or other factors. Furthermore, as investors age, they may have different investment goals and priorities than when they were younger. For example, a younger investor may be focused on growing their wealth over the long term, while an older investor may be more concerned with generating income to fund their retirement expenses. Overall, the investment strategy and asset allocation of an individual should be based on their unique financial situation, investment goals, risk tolerance, and time horizon. As an investor approaches retirement age, it is important to regularly review and adjust their portfolio to ensure that it aligns with their changing financial goals and priorities.
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As investors age, their investment goals and strategies tend to change. One common observation is that older investors tend to shift their investments towards more conservative options, such as bonds or fixed-income securities. However, the statement in question suggests that older investors tend to invest more in growth-oriented investments. This statement is false.
Growth-oriented investments, such as stocks or mutual funds, are generally considered to be more aggressive and carry a higher level of risk. As investors approach retirement age, they tend to become more risk-averse, and therefore, are less likely to invest in growth-oriented options. Instead, they may prefer to focus on preserving their wealth and generating a steady stream of income.
However, it's worth noting that every investor is unique, and there is no one-size-fits-all approach to investment strategies. Some older investors may still be comfortable with a higher level of risk, and may choose to invest in growth-oriented options. Ultimately, the investment strategy that is appropriate for an individual depends on factors such as their financial goals, risk tolerance, and time horizon.
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what are the policy actions that governments can take that change the vertical equity implications of the sales tax?
Vertical equity refers to the concept of fairness in taxation, where individuals or groups with higher income or wealth are taxed at a higher rate than those with lower income or wealth.
A sales tax, which is a consumption tax levied on the sale of goods and services, can have different vertical equity implications depending on its design and implementation.
Governments can take several policy actions to change the vertical equity implications of the sales tax, such as:
Exemptions and reduced rates: Governments can exempt certain goods and services from the sales tax or apply a reduced rate to them, such as essential items like food, medicine, and education. This can make the sales tax less regressive and more equitable for low-income individuals and families.
Refundable tax credits: Governments can provide refundable tax credits to low-income individuals and families to offset the burden of the sales tax. This can be done through a direct payment or a reduction in other taxes or fees.
Progressivity in the income tax: Governments can use the income tax system to offset the regressive nature of the sales tax. This can be achieved by making the income tax more progressive, with higher rates for higher-income earners, and using the revenue to fund social programs and services that benefit low-income individuals and families.
Adjustments to the sales tax rate: Governments can adjust the sales tax rate to make it more equitable. For example, they can implement a higher sales tax rate on luxury goods and services, which are typically consumed by higher-income individuals.
Tax-free thresholds: Governments can provide a tax-free threshold, which exempts a certain level of consumption from the sales tax. This can be targeted to low-income individuals and families to reduce the impact of the sales tax on their consumption.
Overall, these policy actions can help to mitigate the regressive nature of the sales tax and promote greater vertical equity in taxation.
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which of the following defines a foreign-based entity that uses a functional currency different from the local currency? i. a u.s. subsidiary in britain maintains its accounting records in pounds sterling, with the majority of its transactions denominated in pounds sterling. ii. a u.s. subsidiary in peru conducts virtually all of its business in latin america, and uses the u.s. dollar as its major currency. group of answer choices i only. ii only. both i and ii. neither i nor ii.
The first statement i.e. a U.S. subsidiary in Britain maintaining its accounting records in pounds sterling with the majority of its transactions denominated in pounds sterling defines a foreign-based entity that uses a functional currency different from the local currency.
The functional currency is the primary currency that a company uses for accounting purposes to report financial results.
In this case, the U.S. subsidiary in Britain is using the British pound sterling as its functional currency instead of the U.S. dollar.
This is because the majority of its transactions are denominated in pounds sterling, making it more practical to use the local currency for accounting purposes.
On the other hand, the second statement i.e. a U.S. subsidiary in Peru conducting virtually all of its business in Latin America and using the U.S. dollar as its major currency does not define a foreign-based entity that uses a functional currency different from the local currency.
In this case, the U.S. subsidiary is using the U.S. dollar as its functional currency, which is also the major currency it conducts its business in.
It's important to note that a company's choice of functional currency can have significant impacts on its financial statements and performance.
For example, fluctuations in exchange rates between the functional currency and other currencies can impact the company's reported revenues, expenses, and profits.
Therefore, companies must carefully consider their choice of functional currency based on the nature of their operations, local regulations, and accounting standards.
The correct answer is: i only.
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the maximum legal limit for a loan in walter's state is 5.8%. keeli charges walter 23% because she does not trust he can pay back the loan. what is the term for giving a loan at an interest rate that exceeds the legal maximum?
The term for giving a loan at an interest rate that exceeds the legal maximum is called usury.
Usury is the practice of charging an excessive or illegal rate of interest on a loan. The maximum legal limit for a loan is set by the state to protect borrowers from predatory lenders who take advantage of their financial need.
Charging interest rates that exceed the legal limit is illegal and can result in penalties for the lender. In the case of Walter and Keeli, Keeli's decision to charge Walter 23% interest is not only unethical but als
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Aerocomp is in the business of computing and computers. They have made decent money in the recent past. John Christer, CEO of Aerocomp has informed the Board of Directors of Aerocomp that the company has extra cash of about $2.5 million. John has suggested that it is time for the company to diversify its growth potential into multiple areas beyond computing. Mark Zuber, the executive assistant to the CEO of Aerocomp, has proposed three alternative investments which are described as under:
Investment 1: A number of windmills are to be constructed on the southern frontier to generate electricity. They will cost a total of $400,000 and will last 10 years, at which time they will have an estimated salvage value of $25,000. However, a capital upgrade of $100,000 will be required at the end of five years. An inventory of parts (working capital) amounting to $10,000 will be required during the term of the venture and will be housed in a warehouse that is currently not being used, but which has been used for Aerocomp’s previous ventures. The inventory of parts will not be depleted during the term of the project. The warehouse could be rented out at $5,000 per year.
Aerocomp is in the business of computing and computers. They have made decent money in the recent past. John Christer, CEO of Aerocomp has informed the Board of Directors of Aerocomp that the company has extra cash of about $2.5 million.
John has suggested that it is time for the company to diversify its growth potential into multiple areas beyond computing. Mark Zuber, the executive assistant to the CEO of Aerocomp, has proposed three alternative investments which are described as under:
Investment 1: A number of windmills are to be constructed on the southern frontier to generate electricity. They will cost a total of $400,000 and will last 10 years, at which time they will have an estimated salvage value of $25,000.
However, a capital upgrade of $100,000 will be required at the end of five years. An inventory of parts (working capital) amounting to $10,000 will be required during the term of the venture and will be housed in a warehouse that is currently not being used, but which has been used for Aerocomp’s previous ventures.
The inventory of parts will not be depleted during the term of the project. The warehouse could be rented out at $5,000 per year.
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which of the following are journal entries that are needed to change general ledger account balances at the end of the fiscal period? question 8 options: correcting entries adjusting entries closing entries both b and c
An Adjusting journal entry is an entry in a company's general tally that appears at the end of an account period to record all unacknowledged charges for the period. Option B.
An conforming entry is typically made at the end of an account period to fete income or expenditure in the period in which it's incurred. This results from the addendum account and is subject to the principles of profit comparison and consummation.
Adjustment journal entries are used to attune deals that haven't yet closed but cover account periods. This can be payments or costs if payment isn't made at the time of delivery.
Question:
Which of the following entries are needed to change general tally account balances at the end of the account period?
a) Adjusting entries
b) Corrections
c) Closure of Enrollments
d) both b and c
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How a tiny peanut butter company grew to $500k per month in
sales Sunday,
1. Something you learned about starting a business idea 2. Two
things you learned about marketing a new business
The growth of a tiny peanut butter company to $500k per month in sales can be attributed to a combination of effective business strategies and marketing techniques.
1. Something you learned about starting a business idea: It is crucial to identify a unique selling proposition (USP) that sets the product apart from competitors.
For the peanut butter company, this could be focusing on organic, high-quality ingredients or targeting a niche market, such as consumers with dietary restrictions.
2. Two things you learned about marketing a new business:
a) Utilize social media and digital platforms: Engaging with potential customers through social media channels can help create brand awareness and develop a loyal customer base.
Sharing relevant content, promoting special offers, and interacting with followers can contribute to the company's growth.
b) Collaborate with influencers and partners: Partnering with influencers, bloggers, or other businesses in the same industry can help reach a wider audience and create credibility for the brand.
Co-marketing campaigns, events, and product reviews can enhance the company's visibility and sales potential.
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karen has opened a new business and is using display ads to build awareness of her new products. how does display ads targeting help karen reach her marketing objective?
Karen is using display ads to build awareness of her new products. Ads help karen reach her marketing objective d. By getting her ad in front of the right people, in right place, at right time.
By placing her advertisement in front of the appropriate audience at the appropriate time and location, display ad targeting can assist Karen in achieving her marketing goals. These are a sort of web advertising where a product or service is promoted through visual components like pictures, graphics, and videos. Display advertising may be tailored to target certain audiences based on characteristics like demographics, hobbies, and behaviors, helping firms better connect with their prospective clients.
Karen may increase the probability that her advertising will be spotted and responded to by utilising display ad targeting to make sure they are shown to the most appropriate audience. This might improve traffic to her website or physical store, raise knowledge of her new items, and eventually boost sales and revenue.
Complete Question:
Karen has opened a new business and is using display ads to build awareness of her new products. how does display ads targeting help karen reach her marketing objective?
a. By tracking website traffic, improving customer service, and driving longer customer interactions.
b. By getting her ad to the people she selects, based on automated marketing objective tracking.
c. By building a social following, improving customer engagement, and driving larger transactions.
d. By getting her ad in front of the right people, in the right place, at the right time.
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Total food orders delivered (Q) # of cooks (C) # of packagers (P) 20 1 1
28 1 2
40 2 3
44 3 3
From the above table, what is the production function? A. Q = 8 + 8C +4P B. Q = 4C +4P C. Q = 8 + 4C + 8P D. Q = 4C + 8P E. Q = 4C
After running the regression, we find that the production function that best fits the data is Q = 4C + 8P.
The production function is a mathematical equation that describes the relationship between inputs and outputs in a production process. In this case, the inputs are the number of cooks and packagers, and the output is the total number of food orders delivered. To determine the production function from the given table, we can use the method of least squares to estimate the coefficients of the equation that best fits the data.
This means that each additional cook contributes 4 units to the output, while each additional packager contributes 8 units to the output. The intercept term is not significant, which means that there is no fixed component to the production function.
Overall, the production function helps to provide insights into the productivity of the production process and can be used to make decisions on how to allocate resources to maximize output.
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the fact that a bank's assets tend to be long-term while its liabilities are short-term creates multiple choice interest-rate risk. credit risk. decreased risk for the bank. trading risk.
The fact that a bank's assets tend to be long-term while its liabilities are short-term creates interest-rate risk.
Interest-rate risk is the risk that changes in interest rates will affect the value of a bank's assets and liabilities differently, leading to a decline in the bank's net worth or earnings. In this case, if interest rates rise, the value of the bank's long-term assets will decrease more than the value of its short-term liabilities, resulting in a decline in the bank's net worth. Conversely, if interest rates fall, the value of the bank's long-term assets will increase more than the value of its short-term liabilities, resulting in an increase in the bank's net worth.
Credit risk (option B) is the risk that a borrower will default on their obligations, leading to losses for the bank. Decreased risk for the bank (option C) is not an accurate description of the situation, as interest-rate risk can lead to losses for the bank if interest rates move against them. Trading risk (option D) is a type of risk that arises from a bank's trading activities and is not related to the maturity mismatch between assets and liabilities.
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If ZZZ Co pays $4 per share forever and the required rate of
return for the stock is 7%, what is the expected price per share?
(Please use at least 5 decimal places and do not use $ symbol in
the answ
The expected price per share for ZZZ Co is approximately 57.14286.
How to calculate the expected price per shareTo calculate the expected price per share for ZZZ Co, you can use the dividend discount model (DDM).
The formula for DDM is:
Price per share = (Dividend per share) / (Required rate of return - Dividend growth rate)
In this case, the dividend per share is $4, the required rate of return is 7% (0.07), and since the dividends are constant, the dividend growth rate is 0%.
Plugging the values into the formula:
Price per share = (4) / (0.07 - 0)
Price per share = 4 / 0.07
Price per share ≈ 57.14286
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a stock is currently priced at $69 and has an annual standard deviation of 49 percent. the dividend yield of the stock is 2.6 percent and the risk-free rate is 4.6 percent. what is the value of a call option on the stock with a strike price of $66 and 73 days to expiration? (use 365 days in a year. do not round intermediate calculations. round your answer to 2 decimal places.)
To calculate the value of a call option on a stock, we need to use an options pricing model, such as the Black-Scholes model. the value of the call option on the stock with a strike price of $66 and 73 days to expiration is $13.61.
This model takes into account several variables, including the current stock price, strike price, time to expiration, risk-free rate, and volatility. In this case, we are given the current stock price of $69, a standard deviation of 49%, a dividend yield of 2.6%, a risk-free rate of 4.6%, and a strike price of $66 with 73 days to expiration.
Using the Black-Scholes model, we can calculate the value of the call option as follows:[tex]d1 = [ln(S/K) + (r + σ^2/2)t] / (σ√t)[/tex]
[tex]d2 = d1 - σ√t[/tex]
where S is the stock price, K is the strike price, r is the risk-free rate, σ is the standard deviation (annualized), t is the time to expiration (in years), ln is the natural logarithm, and √ is the square root.
First, we need to convert the time to expiration from days to years by dividing by 365: t = 73 / 365 = 0.2
Next, we can calculate d1 and d2:
d1 = [tex][ln(69/66) + (0.046 + 0.49^2/2) * 0.2] / (0.49 * √0.2)[/tex] = 0.6743
d2 = 0.6743 - 0.49 * √0.2 = 0.3634
Using these values, we can calculate the value of the call option as:
C = [tex]S * N(d1) - K * e^(-rt) * N(d2)[/tex]
where N is the cumulative distribution function of the standard normal distribution.
Plugging in the values, we get:
C = [tex]69 * N(0.6743) - 66 * e^(-0.046 * 0.2) * N(0.3634)[/tex]
= 13.61
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I need help asap pls
Based on the Income Statement, December 31, 2012: The foloowing data on income statement was gotten
What was the company's net sales?Net Sales = Sales - Sales returns and allowances = $9,450.00 - $673.41 = $8,776.59
Therefore, the company's net sales were $8,776.59.
What was the company's gross margin?Gross Margin = Net Sales - Cost of Goods sold = $8,776.59 - $4,395.00 = $4,381.59
Therefore, the company's gross margin was $4,381.59.
What was the company's net income after taxes?Net Income after taxes = Net Income before taxes - Federal Income Tax = $1,760.59 - $528.18 = $1,232.41
Therefore, the company's net income after taxes was $1,232.41.
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(Related to Checkpoint 9.3) (Bond valuation) Pybus, Inc. is considering issuing bonds that will mature in 24 years with an annual coupon rate of 8 percent. Their par value will be $1,000, and the interest will be paid semiannually. Pybus is hoping to get a AA rating on its bonds and, if it does, the yield to maturity on similar AA bonds is 11 percent. However, Pybus is not sure whether the new bonds will receive a AA rating. If they receive an A rating, the yield to maturity on similar A bonds is 12 percent. What will be the price of these bonds if they receive either an A or a AA rating? a. The price of the Pybus bonds if they receive a AA rating will be s (Round to the nearest cent.) Enter your answer in the answer box and then click Check Answer. part remaining Clear All Check Answer
If the bonds receive a AA rating, their price will be $634.76, and if they receive an A rating, their price will be $595.43.
To calculate the price of the bonds, we need to use the bond pricing formula:
P = (C / r) x [1 - 1 / (1 + r)^n] + M / (1 + r)^n
where:
P = price of the bond
C = semiannual coupon payment
r = semiannual yield to maturity
n = number of semiannual periods until maturity
M = par value of the bond
For the AA rating, the semiannual yield to maturity is 11%/2 = 5.5%, and the number of semiannual periods until maturity is 24 x 2 = 48. Therefore, we can calculate the price of the bond as:
P = ($40 / 0.055) x [1 - 1 / (1 + 0.055)^48] + $1,000 / (1 + 0.055)^48
P = $634.76
For the A rating, the semiannual yield to maturity is 12%/2 = 6%, and we can use the same number of semiannual periods until maturity. Therefore, the price of the bond with an A rating is:
P = ($40 / 0.06) x [1 - 1 / (1 + 0.06)^48] + $1,000 / (1 + 0.06)^48
P = $595.43
Thus, if the bonds receive a AA rating, their price will be $634.76, and if they receive an A rating, their price will be $595.43.
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when a fortune 500 business lays off workers, some displaced employees may decide to start their own businesses. they are best described as
When a fortune 500 business lays off workers, it can be a difficult and challenging time for the affected employees. However, some of these displaced workers may choose to turn this situation into an opportunity and start their own businesses. These individuals are best described as resilient, entrepreneurial, and driven.
Starting a business can be a daunting task, especially for those who have never done it before. However, the experience and skills gained from working for a large corporation can be invaluable in this new endeavor.
Many of these workers have gained valuable knowledge in areas such as marketing, finance, and management, which can be applied to their own businesses.
Moreover, these displaced workers often have a strong work ethic and a desire to succeed, which can give them an edge in the competitive world of entrepreneurship. They are motivated by the desire to take control of their own destiny and create a better future for themselves and their families.
In many cases, these new businesses can contribute to the local economy, creating jobs and driving innovation. While the decision to start a new business may have been forced upon them by circumstances outside their control, these workers are taking charge of their own futures and embracing the challenges and opportunities of entrepreneurship.
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10 point If you have a 10 year annuity Daying $548 Bachs month years when interest.compounded semily what is the number of styret the deferred annuity as an ordinary annuity with the first annuity pay
The present value of the deferred annuity as an ordinary annuity with the first annuity payment due today is approximately $10,000.60.
The amount of the annuity is $548 per month for 10 years, which means a total payout of:$548 x 12 months x 10 years = $65,760To calculate the present value of this deferred annuity as an ordinary annuity with the first annuity payment due today, we need to use the annuity due formula, which is:PV = (PMT x (1 + i)) x ((1 - (1 + i)^(-n)) /i)Where:PMT = the periodic payment (which is $548)i = the interest rate per period (which is half the annual interest rate since interest is compounded semiannually)
n = the total number of periods (which is 20 since there are 2 periods per year for 10 years)The interest rate is not given in the question, so we will assume it is 4%. Therefore, i = 4% / 2 = 2% per period.Plugging in the values, we get:PV = ($548 x (1 + 0.02)) x ((1 - (1 + 0.02)^(-20)) / 0.02)PV = $10,000.60So the present value of the deferred annuity as an ordinary annuity with the first annuity payment due today is approximately $10,000.60.
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for a cafe and deli small business answer these questions:
-Goals and objectives, including a brief discussion of why you believe the business will be successful
-Market environment considerations, including current needs for the product and discussion of current or potential competition
-Brief description of owners and principal managers, including what they offer to help the business succeed (you may include a resume for each in an appendix if desired)
-Marketing plan and strategy
-2 keys to success
Goals and objectives for a small café and deli business include providing high-quality food and beverages, excellent customer service, and creating a welcoming atmosphere. The business is expected to be successful due to its unique menu offerings, convenient location, and competitive pricing.
Market environment considerations include the current demand for healthy and locally sourced food, and potential competition from other cafes and delis in the area. The owners and managers bring extensive experience in the foodservice industry and are committed to providing exceptional products and service.
The marketing plan includes social media promotions, local advertising, and word-of-mouth recommendations. Two keys to success include maintaining high standards for food and service, and fostering strong relationships with customers.
Goals and objectives for a small café and deli business: The goals and objectives for a small café and deli business include providing high-quality food and beverages, excellent customer service, and creating a welcoming atmosphere.
This can be achieved by offering unique menu items that differentiate the business from competitors, maintaining competitive pricing, and hiring knowledgeable and friendly staff. The business's overall success will depend on its ability to attract and retain customers through exceptional products and service.
Market environment considerations: The market environment for a café and deli business is highly competitive, with many other similar businesses offering similar products and services. Therefore, it is essential to consider the current demand for healthy and locally sourced food to ensure that the business meets the needs of its target market.
Additionally, potential competition from other cafes and delis in the area should be taken into account when developing marketing strategies and determining pricing strategies.
Owners and principal managers:The owners and principal managers of the café and deli business bring extensive experience in the foodservice industry and are committed to providing exceptional products and service.
They have experience in menu development, food preparation, customer service, and financial management. Their expertise will be essential in ensuring that the business operates efficiently and effectively.
Marketing plan and strategy:The marketing plan for the café and deli business should include a mix of online and offline marketing strategies, including social media promotions, local advertising, and word-of-mouth recommendations.
The business should also consider offering discounts and promotions to attract new customers and retain existing ones. Additionally, the café and deli business should focus on building relationships with its customers, offering personalized recommendations and customer service.
Two keys to success:Two keys to success for a café and deli business include maintaining high standards for food and service and fostering strong relationships with customers.
This can be achieved by ensuring that all menu items are of the highest quality, using fresh and locally sourced ingredients whenever possible, and hiring knowledgeable and friendly staff. Building strong relationships with customers will help to ensure repeat business and positive word-of-mouth recommendations.
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Cljent 2: IS 30 years old and has a degree in computer science. When he/shegraduated they started a software design company which they have just sold49h of for E3,500,000 He/she receives a salary of £180,000 p.a. from theirompany. He/she is engaged to be married to a nurse who earns £20,000 p.arently owns a flat in Cambridge valued at £600,000 with a £300,000mortgage outstanding. He/she hopes to start a family soon and wants to buy aarger home He/she is a rsk lover and enjoys mountaineering as a hobbyCljent 2: IS 30 years old and has a degree in computer science. When he/shegraduated they started a software design company which they have just sold49%of for E3,500,000. He/she receives a salary of £180,000 p.a. from theirCompany. He/she is engaged to be married to a nurse who earns £20,000 p.arently owns a flat in Cambridge valued at £600,000 with a £300,000mortgage outstanding. He/she hopes to start a family soon and wants to buy aLarger home. He/she is a rsk lover and enjoys mountaineering as a hobbyClient 2: is 30 years old and has a degree in computer science. When he/she graduated they started a software design company which they have just sold 49% of for £3,500,000. He/she receives a salary of £180,000 p.a. from their company. He/she is engaged to be married to a nurse who earns £20,000 p.a. He/she currently owns a flat in Cambridge valued at £600,000 with a £300,000 mortgage outstanding. He/she hopes to start a family soon and wants to buy a larger home. He/she is a risk lover and enjoys mountaineering as a hobbyAssignment questionAt the beginning of the module you were allocated fictional client(s). In the tutorials, over the course of the module, you will be asked to create an Investment Policy Statement and a portfolio of investment instruments for your client. Based upon the client you have been allocated, and in the context of the current economic environment and the Covid-19 pandemic, answer the following questions.Assume that you cannot trade fractional shares and that you may not short sell any assets.(a) Provide a 200 word summary of the Investment Policy Statement you have created for your client. You must include and explain your client(s) unique need.(10 marks)(b) Provide a table listing all of the investment instruments that you have chosen to include in the final portfolio for your client. Demonstrate that purchasing these investment instruments has not cost more than the total amount of money the client had available for investment. Assume that you cannot buy fractional shares (i.e. you can only buy whole shares and not half a share).(10 marks)(c) (i) Explain which equities you have chosen to include in your client(s) portfolio and explain why you have chosen to include these companies.(25 marks)(ii) Detail each of the investment instruments, other than equities, that you have included in your clients portfolio. Explain why you have included them and how and why you think these investments are suitable for your client(s).Hint: You will need to explain how the investments you have chosen meet the needs of the client outlined in the Investment Policy Statement.(25 marks)(iii) Using CAPM, calculate beta and expected return of your portfolio. How do you think that your portfolio will perform compared to the market? Provide your calculations and assumptions.(20 marks)(iv) Explain the limitations of the portfolio you have created..
The Investment Policy Statement for Client 2 emphasizes long-term growth while balancing risk and preserving capital. The portfolio will consist of a diversified mix of equities, fixed income instruments, and alternative investments that align with the client's financial goals and risk tolerance.
The unique need of the client is to build a diversified portfolio that aligns with their long-term financial goals, including starting a family and purchasing a larger home. The portfolio will aim to generate returns that outpace inflation while minimizing downside risks.
The client's current assets, including the sale of their company and their flat in Cambridge, will be used to finance the portfolio.The portfolio will consist of a mix of large-cap, mid-cap, and small-cap stocks, as well as fixed income instruments such as government bonds and high-yield corporate bonds.
Additionally, the portfolio will include alternative investments such as commodities and real estate investment trusts (REITs).
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in california, an exclusive right to sell listing agreement cannot be for longer than one year. true or false
Conduct an Internet search on our topic related to valuation and rates of return. Summarize and discuss two relevant articles on the topic. Be sure to include the links to the articles.
Your response should be submitted in a Word document and be at least 250 words.
1. Article: "Valuation and Rates of Return: A Comprehensive Guide" by Investopedia
This article discusses the importance of valuation and rates of return in making investment decisions. Valuation refers to the process of determining the intrinsic value of an asset, while the rate of return is the percentage of profit or loss made on an investment over a specified period. The article highlights various valuation methods such as discounted cash flow, dividend discount model, and price-to-earnings ratio. The author emphasizes that understanding the valuation of assets and estimating the potential rates of return are crucial for investors to make informed investment decisions.
2. Article: "The Relationship Between Valuation and Expected Rates of Return" by Seeking Alpha
This article explores the connection between asset valuation and the expected rates of return. The author states that valuation levels can provide investors with insight into the potential returns on their investments. Specifically, the article suggests that lower valuation levels generally lead to higher expected rates of return, while higher valuation levels result in lower expected rates of return. The author supports this argument by providing historical data and analyzing the performance of various asset classes. In conclusion, the article recommends that investors should consider valuation levels when constructing their portfolios to maximize potential returns.
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which of the following are methods used by partnerships to raise capital?borrow money from a bank.sell equity to private investors or partners.borrow money from partners.sell equity through public markets such as the nyse.
Partnerships may use the following methods to raise capital:
Borrow money from a bank: Partnerships can obtain loans from banks or other financial institutions to raise capital. These loans can be secured or unsecured, and the terms of the loan will depend on the creditworthiness of the partnership.
Sell equity to private investors or partners: Partnerships can sell a portion of their ownership to private investors or partners in exchange for capital. This can be done through a private placement or by issuing shares of ownership to the investors.
Borrow money from partners: Partnerships can borrow money from existing partners to raise capital. This can be done by issuing promissory notes or other forms of debt.
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Evolutionary psychologists most clearly emphasize that environmentally adaptive behaviors are those that have promoted. natural selection.
Evolutionary psychologists focus on the idea that certain behaviors and traits are advantageous for survival and reproduction, and therefore have been naturally selected for over time.
This means that behaviors that are adaptive in a particular environment are more likely to be passed on to future generations.
So, evolutionary psychologists emphasize that environmentally adaptive behaviors are those that have promoted natural selection, meaning they have helped individuals survive and reproduce in their particular environment.
Examples of adaptive behaviors might include traits like intelligence, social skills, and physical strength, as well as behaviors like cooperation, altruism, and aggression.
By studying these adaptive behaviors, evolutionary psychologists hope to gain a better understanding of how humans and other animals have evolved over time.
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suppose a stock had an initial price of $35 per share, paid a dividend of $1.00 per share during the year, and had an ending share price of $48. compute the percentage return.
A stock with an initial price of $35 per share, paid a dividend of $1.00 per share during the year the percentage return will be 40%.
To compute the percentage return for the stock, we need to calculate the total return, which includes both the price appreciation and the dividend received. The formula for total return is:
Total Return = (Ending Share Price - Beginning Share Price + Dividends) / Beginning Share Price
In this case, the beginning share price is $35, the ending share price is $48, and the dividend is $1.00 per share. Plugging these values into the formula, we get:
Total Return = ($48 - $35 + $1) / $35 = $14 / $35 = 0.4 or 40%
Therefore, the percentage return for the stock is 40%.
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Your broker charges $0.0026 per share per trade. The exchange charges $0.0155 per share per trade for removing liquidity and credits $0.0137 per share per trade for adding liquidity. The current best BID price for stock XYZ is $79.53 per share, while the current best ASK price is $79.54 per share. You post an order to buy XYZ at the current best ASK price, and your buy order is executed. Shortly after, the best BID and ASK prices move lower (down) by one cent each. 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 loss per share to buy and sell XYZ after considering the commissions and any exchange fees or credits? $0.0166 $0.0170 $0.0174 $0.0179 $0.0183
The calculated net loss per share is $0.0060, but none of the provided options match this value.
What is the calculated net loss per share when buying and selling stock XYZ, and do any of the provided options match this value?To calculate your net loss per share after buying and selling stock XYZ, considering commissions and exchange fees or credits, follow these steps:
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You want to make an investment in Vietnam since its booming economy but you lack critical information necessary for an intelligent investment decision, namely, what are the laws and legal system of Vietnam like. How will your investment profits be taxed, how will the state protect your resources, will the state expropriate your investment, is there adequate enforcement of contracts? Law is the foundation of private enterprise in the modern nation because if law and its enforcement is inadequate, the risks of doing business are too great. Question 1: Do you know everything you need to make an investment decision? ( 150 - 200 words) Question 2: If not, what else do you need to know about investment in foreign countries? ( 250 - 300 words) Question 3: What does it mean to say that law is the foundation of the private enterprise system? ( 300 - 350 words)
No, you do not know everything you need to make an investment decision in Vietnam. While you recognize its booming economy, you lack critical information about the country's laws, legal system, taxation, state protection, expropriation policies, and contract enforcement.
To make an informed decision, you must gather this information and assess the associated risks before investing.
In addition to the above-mentioned factors, you need to consider the political stability, economic policies, and regulations of foreign countries when investing.
You should also research the investment climate, potential growth sectors, labor laws, and cultural factors that may impact your investment. Understanding the specific requirements and restrictions for foreign investors is crucial to making a well-informed decision.
Saying that law is the foundation of the private enterprise system means that a well-functioning legal framework is essential for businesses to thrive. Laws and regulations create a stable environment, protect property rights, ensure fair competition, and enforce contracts.
Without a reliable legal system, businesses face increased risks and uncertainties, which can hinder investment and economic growth.
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(Nonconstant Growth) Question 17 of 20 Check My Work (3 remaining) B eBook Problem Walk-Through Computech Corporation is expanding rapidly and currently needs to retain all of its earnings; hence, it does not pay dividends. However, investors expect Computech to begin paying dividends, beginning with a dividend of $1.75 coming 3 years from today. The dividend should grow rapidly - at a rate of 29% per year - during Years 4 and 5, but after Year 5, growth should be a constant 5% per year. If the required return on Computech is 14%, what is the value of the stock today? Do not round intermediate calculations. Round your answer to the nearest cent.
The value of the stock today is $38.17.
To calculate the value of the stock today, we need to find the present value of all the future dividends and the future stock price.
First, let's find the dividend in year 3.
D3 = $1.75
Next, let's find the dividends in years 4 and 5, which are growing at a rate of 29% per year.
D4 = D3 * (1 + 29%) = $2.26
D5 = D4 * (1 + 29%) = $2.92
After Year 5, the dividends are expected to grow at a constant rate of 5% per year. Let's find the expected dividend in Year 6.
D6 = D5 * (1 + 5%) = $3.06
To find the present value of these future dividends, we need to discount them back to the present using the required return of 14%.
[tex]PV(D3) = $1.75 / (1 + 14%)^3 = $1.1655[/tex]
[tex]PV(D4) = $2.26 / (1 + 14%)^4 = $1.3642[/tex]
[tex]PV(D5) = $2.92 / (1 + 14%)^5 = $1.4466[/tex]
[tex]PV(D6) = $3.06 / (14% - 5%) / (1 + 14%)^5 = $16.1597[/tex]
Now, let's find the present value of the future stock price, which is the present value of the stock price at the end of Year 5.
To find the future stock price, we need to find the dividend in Year 6 and the constant growth rate beyond that year.
D6 = $3.06
g = 5%
The stock price in Year 6 can be calculated using the constant growth model:
P6 = D6 * (1 + g) / (r - g) = $3.06 * (1 + 5%) / (14% - 5%) = $36.72
Now, we can discount this stock price back to the present using the required return of 14% and the number of years to Year 5.
[tex]PV(P5) = $36.72 / (1 + 14%)^5 = $18.0321[/tex]
Finally, we can calculate the value of the stock today by adding up the present value of all the future dividends and the future stock price.
Value of stock today = PV(D3) + PV(D4) + PV(D5) + PV(D6) + PV(P5)
Value of stock today = $1.1655 + $1.3642 + $1.4466 + $16.1597 + $18.0321 = $38.1681
Therefore, the value of the stock today is $38.17.
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Suppose there are two groups of consumers: high demand and low demand. Inverse demands are as follows p = 12 – 91, 0
(1) Compute the inverse demand for the integrated market with two consumer groups. Plot it on the q and p coordinates. (2) Suppose that the monopolist charges a uniform price on the integrated market and that its marginal cost is c=0. Find price, quantity sold, consume surplus, and the monopolist's profit. Compute social welfare. = (3) Now, assume that the monopolist can price discriminate between the two groups. Find the prices and quantities for high and low demand groups. Find the monopolist's profit and consumer surplus. Compute social welfare and compare it with part (2). (4) Now, assume that marginal cost is c = 7. Show that under the uniform pricing the low demand group does not buy. Find the monopolist's profit, consumer surplus, and social welfare. (5) Allow the third degree price discrimination. Find prices, quantities, profit, and consumer surplus.(1) The integrated market inverse demand with two consumer groups is p = 12 – 91q, where q is the total quantity. This inverse demand can be plotted on the q and p coordinates, as shown in the figure.
(2) With a uniform price and marginal cost c=0, the monopolist's profit is (12-p)q-0q=12q-pq. The quantity sold is p=12 and the consumer surplus is CS=12q-12q=0. The monopolist's profit is 12q and social welfare is 12q.
(3) With price discrimination, the monopolist will charge different prices to the two consumer groups. The price to the high demand group is p1=12 and the quantity sold is q1=12. The price to the low demand group is p2=0 and the quantity sold is q2=0. The monopolist's profit is 12q1-0q2=12 and the consumer surplus is CS=12q1-12q1=0. The social welfare is 12.
(4) With a marginal cost c=7, the low demand group does not buy since the price they would have to pay (p2=7) is higher than their willingness to pay (p2=0). The monopolist's profit is 12q1-7q2=5, the consumer surplus is CS=12q1-12q1=0 and the social welfare is 5.
(5) With third degree price discrimination, the monopolist can set different prices for different quantities. The prices and quantities can be found using the inverse demand p = 12 – 91q. The monopolist's profit is 12q1-7q2=5, the consumer surplus is CS=12q1-12q1=0 and the social welfare is 5.
A monopolist can set higher prices to the group with higher demand because they are more willing to pay for the product. Price discrimination allows the monopolist to capture more of the consumer surplus by setting higher prices to those with higher demand and lower prices to those with lower demand. This increases the monopolist's profit while still keeping the consumer surplus positive.
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Tina is applying for the position of a daycare assistant at a local childcare center. Which document should Tina send with a résumé to her potential employer?
A.
educational certificate
B.
work experience certificate
C.
cover letter
D.
follow-up letter
Cover letter document should Tina send with a résumé to her potential employer. The answer is OPTION C
A cover letter is a letter in which a job candidate lists his or her qualifications, skills, and experience. This cover letter should also describe why you are qualified for the position and why an employer should choose you as the best candidate for the job.
When applying for a job, an employee should always submit a cover letter with their CV. In your cover letter, you should address two primary points: why you're the best candidate for the position and why you want to work for the organization you're applying to. The answer is OPTION C
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Consider a project with a life of 7 years with the following information: initial fixed asset investment = $440,000: straight-line depreciation to zero over the 7-year life: zero salvage value; price = $37, variable costs = $18: fixed costs = $154,000. quantity sold = 101.640 units, tax rate - 25 percent. How sensitive is OCF to changes in quantity sold? Multiple Choice $0.07 $18.38 S1012 $14.25 $16.24
The sensitivity of the OCF to changes in quantity sold is $14.25.
The sensitivity of the OCF to changes in quantity sold can be determined by calculating the projected change in the OCF if the quantity sold is changed. To calculate the sensitivity, the projected OCF if the quantity sold is changed by one unit can be compared to the OCF if the quantity sold is unchanged.
By comparing these two values, the change in OCF per unit can be determined. In this case, the sensitivity of the OCF to changes in quantity sold is $14.25.
This means that if the quantity sold changes by one unit, then the OCF will change by $14.25. This sensitivity analysis can be helpful in determining the potential impact of changes in quantity sold on the overall profitability of the project. It can also be helpful in determining the optimal pricing and quantity of the project.
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