Answer:
the average profit from selling a car = $25,500 x 9% = $2,295
the average profit from providing 1 service = $122
customer lifetime value = (Annual profit per customer x customer relationship in years) - customer acquisition cost
the current CLV = $2,295 + ($122 x 8 x 81%) = $3,085.56
if you are able to increase the probability of using the company's maintenance services by 5% (from 815 to 86%), then the new CLV = $2,295 + ($122 x 8 x 86%) = $3,134.36
the difference = $3,134.36 - $3,085.56 = $48.80
Theoretically, you can spend up to $48.80 in the service loyalty program. But this analysis is incomplete, since providing a good service should also increase the possibility of selling a new car to the same customer after 5 years. This should extend the customer relationship for many years. E.g. that has been a major factor in the success of Honda and Toyota.
Answer:
True
Explanation:
If polices are not developed that avoid acquisitions and restructuring, this results in hostile takeover of the company by other investors or decline of earning per share of the investors. So its important to develop such polices.
Answer: $2,974.45 million
Explanation:
Cost of goods sold for Year 7 = $2,945 million
Cost of goods sold is expected to increase by 1%.
Cost of goods sold in Year 8 will be:
= 2,945 * (1 + 1%)
= $2,974.45 million
Answer:
Real holding period return = - 6.44% (Approx)
Explanation:
Holding period return = [Dividend + (Price of share ending - Price of share start)] / Price of share start
Holding period return = [3 + (50-55)] / 55
Holding period return = -2 / 55
Holding period return = -0.0363636
Real holding period return = [(1 + Holding period return)/(1 + Inflation)] - 1
Real holding period return = [(1 - 0.0363636)/(1+0.03)]-1
Real holding period return = - 0.06443
Real holding period return = - 6.44% (Approx)
It can easily show a lot of the ups and downs to careers that one may be interested. You can see people's personal experiences and how people view the job compared to what it is. You can get a lot of insight which could sway your choice.
