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3 years ago

When coca-cola promoted coke as a morning beverage for those consumers who don't drink coffee, it used a __________ strategy?

1 answer:

7 0

In this situation coca-cola used what is called a market modification strategy. A market modification strategy is one that a company uses in order to increase use or consumption of a product or service that they offer. In this case, coca-cola was attempting to increase consumption of its product by selling it to a group that does not consume the common breakfast drink.

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Consider the following information and then calculate the required rate of return for the Global Investment Fund, which holds 4

Mrac [35]

Answer:

r Portfolio = 0.1489 or 14.89%

Explanation:

To calculate the required rate of return of Global Investment Fund's portfolio, we first need to determine the return on Market (rM) using the CAPM equation for required rate of return.

r = rRF + Beta * (rM - rRF)

Where,

rRF is the risk free rate

We already know the required rate of return for the market and the risk free rate. The beta for market is always 1. SO, the return on market is also 13.25% because at a beta of 1, the return on market and the required rate of return on market is same.

Now we need to calculate the required rate of return of each stock and then calculate the weighted average of the required rate of returns of each stock to calculate the required rate of return for the Global Investment Fund.

r A = 0.07 + 1.5 * (0.1325 - 0.07)

r A = 0.16375 or 16.375%

r B = 0.07 + (0.1325 - 0.07) * -0.5

r B = 0.03875 or 3.875%

r C = 0.07 + 1.25 * (0.1325 - 0.07)

r C = 0.148125 or 14.8125%

r D = 0.07 + 1.75 * (0.1325 - 0.07)

r D = 0.179375 or 17.9375%

Total investment in GIF = 200000 + 300000 + 500000 + 1000000

Total investment in GIF =2000000

required rate of return of Global Investment Fund (GIF) is,

r Portfolio = 0.16375 * 200000/2000000 + 0.03875 * 300000/2000000 +

0.148125 * 500000/2000000 + 0.179375 * 1000000/2000000

r Portfolio = 0.1489 or 14.89%

3 0

3 years ago

A common size analysis requires the representation of financial statement data in terms of a single financial statement item (or

charle [14.2K]

Answer:

Net sales

Explanation:

A common size income statement represent the income statement in which each item line wise should be expressed as the sales or revenue percenatge. The motive of preparing this statement is to have the analyse and compare the performance of the company with their various years

So the base item that should be common used for this type of income statement is net sales

6 0

3 years ago

The Crestar Company reported net income of $112,000 on 20,000 average outstanding common shares. Preferred dividends total $12,0

AlexFokin [52]

Answer:

Price earnings ratio = 19 times.

Explanation:

Price earning ratio is calculated as for the common equity, as the earnings on preference share is fixed.

Accordingly, the earnings for equity = Net income - preference dividend = $112,000 - $12,000 = $100,000

Number of shares outstanding = 20,000

Earnings per share = $100,000/20,000 = $5 per share.

Selling price of the share = $95

Thus, price earnings ratio = $95/$5 = 19 times.

This reflects that the 19 times of earnings is the price of share.

7 0

3 years ago

Asking a job applicant if he or she has ever been treated for drug addiction is an example of a(n)

Vladimir [108]

This is an illegal question. You may ask about a person's convictions for drug related charges, but you should not ask about treatment. This could also be classified as a needless question, but mostly illegal.

4 0

4 years ago

Read 2 more answers

In general, managing global operations is made easier by __________ and __________.

Scorpion4ik [409]

The two things that made managing global operations to be easier are the following;

· Technology – Machines and scientific knowledge that are helpful in advancing and dealing with certain fields to make it easier and to develop

· Free Trade – This is a way of having imports or exports to be made to different countries in which the government of a certain country does not restrict or prevent it from happening.

4 0

4 years ago