Answer:
They recognize the lifetime value of customers.
The difference between the terms supply and quantity supplied is supply includes all the possible market prices and the amount of quantity while quantity supplied deals with one specific market price and amount of quantity.
Answer:
23.53% or 24% (Approx)
Explanation:
Given that,
Current Assets = $632,000
Total Assets = 1,424,000
Cost of Goods Sold = 1,040,000
Gross Profit = $320,000
Net Income = 192,000
Sales revenue = Cost of goods sold + Gross profit
= $1,040,000 + $320,000
= $1,360,000
Gross profit margin = (Gross Profit ÷ Sales) × 100
= (320,000 ÷ 1,360,000) × 100
= 0.23529 × 100
= 23.53% or 24% (Approx)
Answer:
The company must borrow $3000 and option B is the correct answer.
Explanation:
The minimum cash balance is the required balance that the company should have at the end of the period. The decision to borrow or repay will be taken by comparing the period end balance with the minimum balance. If the period end balance is higher than the minimum balance, the company may decide to repay. If it is lower than the minimum balance, the company should borrow.
The period end balance can be calculated as,
Ending balance = Opening Balance + Cash receipts - Cash disbursements
Ending balance = 17000 + 120000 - 130000
Ending balance = $7000
Difference = 7000 - 10000 = -$3000
As the ending cash balance ($7000) is less than the minimum cash balance required ($10000), the company should borrow for the amount of difference. Thus, the company should borrow $3000
Answer:
Price of the bond = $1,252.65 (Approx)
Explanation:
Required Return = Real rate of return + Risk premium + Inflation premium
Required Return [After 5 yr] = 5% + 4% + 2%
Required Return [After 5 yr] = 11%
Number of year left [for maturity] = 30 -5 = 25 year
Interest payment = $1,000 x 14%
Interest payment = $140
Using Formula in excel;
Price of the bond = pv(rate,nper,pmt,fv)
Price of the bond = pv(11%,25,140,1000)
Price of the bond = $1,252.65 (Approx)