Answer: $53.94
Explanation:
Current share price is the present value of the dividends for the next 3 years and the terminal value in year 3.
Terminal value = D₄ / ( required return - growth rate)
= (2.35 * 1.22³ * 1.05) / (12 % - 5%)
= $64
D₁ = 2.35 * 1.22 = $2.867
D₂ = 2.867 * 1.22 = $3.49774
D₃ = 3.49774 * 1.22 = $4.2672428
Share price = (2.867 / (1 + 12%)) + (3.49774 / 1.12²) + (4.2672428 / 1.12³) + (64/1.12³)
= $53.94
Answer:
24.7215
Explanation:
Given;
Discount = 50%
Regular price, p = $8
cost of cake, c = $5
salvage value, s = 50% of $8 = $4
Mean = 20
Standard deviation, σ = 7
Now,
Underage cost, Cu = p - c
= $8 - $5
= $3
Overage cost, Co = c - s
= $5 - $4
= $1
P ≤ 
P ≤ 
P ≤ 0.75
The Z value for the probability 0.75 is 0.6745
The optimal stocking level = Mean + ( z × σ )
= 20 + 0.6745 × 7
= 24.7215
Answer:
A) The marketing research process
Explanation:
Marketing research process is the collection, analysis, and interpretation of data relating to the marketing conditions. It consist of the systematic process of planning and executing marketing objectives and also solving marketing related problems
Defining the problem, developing the research plan, collecting information, analyzing information, presenting the findings and lastly making decision.
Answer:
a. 7,000 years
b. 2,333 years
c. 875 years
Explanation:
Based on rule of 70, we can have the following formula to do the calculation:
Number of years to double = 70 ÷ Interest rate per year .................... (1)
We can now calculate as follows:
a. A savings account earning 1% interest per year.
Number of years to double = 70 ÷ 1% = 7,000 years
b. A U.S. Treasury bond mutual fund earning 3% interest per year.
Number of years to double = 70 ÷ 3% = 2,333 years
c. A stock market mutual fund earning 8% interest per year.
Number of years to double = 70 ÷ 8% = 875 years
Note:
It can be observed that the higher the interest rate, the lower the number of years it will take the investment to double.
Answer:
B. decision styles are consistent among top managers
Explanation:
Decision making styles differ between managers. Many managers exercise autocratic style which is authoritative wherein very limited inputs from the subordinates are taken and there is little scope for constructive advises.
In heuristic style, the strategies help managers to take clear cut decisions in a prompt manner. In such a form, decisions are arrived at quickly.
Managerial decision making methods differ from manager to manager and are an outcome of managers own judgement and demeanor.
Hence it is evident from above points that decision styles are not consistent among top managers.
