Push strategy would work best for Outdoor Living.
Option E
<u>Explanation:
</u>
A pushing-marketing strategy, also known as a push advertising approach, is a technique by which a business tries to push its products to customers. In either a push marketing strategy it's meant for customers to continue at the time of purchase by using different active commercialization strategies to "drive" their goods.
It is beneficial for manufacturers who try to build a distribution channel and seek help from retailers in the marketing of goods. It provides access to goods, demand for products and consumer awareness of a commodity.
Demands can be forecast and consistent because the producer will generate and drive consumer products as much or as little.
Cost reductions can be accomplished if the commodity can be manufactured on a cost because of high demand.
Answer:
A) The company develops programs in-house.
Explanation:
Many companies prefer to develop the resources it wants if it is possible. In cases when companies desire so, it has its own research and development team.
When the company has its own personnel for the development of programs, that is consisting test engineers, technical writers, and many other required development personnel, will specify for the company's own programs development.
The company has its own inbuilt capacity to develop the programs in house.
Answer: 0.755
Explanation:
From the information given, the current per share value of the option if it expires in one year will be calculated as follows:
Firstly, we calculate the present value which will be:
= $28 / ( 1 + 0.05 )
= $28/1.05
= $26.667
The number of options needed will be:
= ( 34 - 28 )/ ( 4-0)
= 6/4
= 1.5
Therefore,
27.80 = (1.5 x Co) + [28 / (1+0.05)]
27.80 = 1.5Co + (28/1.05)
27.80 = 1.5Co + 26.667
1.5Co = 28.0 - 26.667
1.5Co = 1.1333
Co = 0.755
Therefore, the answer is 0.755
Answer:
1. $146,666.67
2. $129,411.76
Explanation:
In this question, we apply the Capital Asset Pricing Model (CAPM) formula which is shown below
Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)
1. For computing the value of the firm, first we have to compute the Expected rate of return which is shown below:
= 5% + 0.5 × (10% - 5%)
= 5% + 0.5 × 5%
= 5% + 2.5%
= 7.5%
Now the value of firm would be
= Expected cash flows ÷ Expected rate of return
= $11,000 ÷ 7.5%
= $146,666.67
2. If beta is 0.7, then the expected rate of return and the value of firm would be
= 5% + 0.7 × (10% - 5%)
= 5% + 0.7 × 5%
= 5% + 3.5%
= 8.5%
Now the value of firm would be
= Expected cash flows ÷ Expected rate of return
= $11,000 ÷ 8.5%
= $129,411.76
