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4 years ago

6

If retention is so much more profitable than acquisition, why have companies persisted for so long in spending more on getting n

ew customer than keeping the ones they have

1 answer:

Vsevolod [243]4 years ago

6 0

Companies persisted for so long because business managers kept a good readout way for governors

You might be interested in

What are some common motivations of financial statement fraud examination?

WINSTONCH [101]

Answer:

To support a high stock price, to support a bond or stock offering, or to increase the company's stock price.

Explanation:

The motivation to publish fraudulent financial statements varies depending on the situation. A common theme in many cases of fraud is the attempt to improve the reported financial information to maintain high stock prices, support bonds or stock quotes, or raise a company's stock price. In many companies that published fraudulent financial statements, senior executives held significant stocks or stock options, and lowering the price of the stock would significantly reduce personal net worth or make worthless options. As a result, senior management had to maintain the high share price and therefore needed high returns to maintain the high share price. Investors value reports that increase profits each year. Indeed, the decline in earnings can significantly lower a company's stock price. Sometimes fraudulent financial reports cause line managers to exaggerate the results to meet the company or other expectations. Sometimes the cost of failure in corporate governance is high, and when it comes to choosing between failure and fraud, some managers quickly turn to fraud.

5 0

3 years ago

If the Fed conducts open-market purchases, the money supply A. decreases and aggregate demand shifts right. B. increases and agg

Nataly_w [17]

If the Fed conducts open-market purchases, the money supply increases and aggregate demand shifts right.

Answer: Option B

<u>Explanation:</u>

With the Fed conducting an open market purchase, the people will sell of the securities that they possess. In return they will get money from the fed for the purchases that it makes. With the increase in the supply of money in the economy, there will be more demand by the people in the economy.

Therefore the aggregate demand curve will shift to the right direction showing more demand of the goods and services by the people in the economy.

4 0

3 years ago

olga55 [171]

Answer:

Find below the variables missing from the question:

Selected sales and operating data for three divisions of different structural engineering firms are given as follows :

Division A Division B Division C

Sales $5,800,000 $9,800,000 $8,900,000

Average operating assets $1,450,000 $4,900,000 $2,225,000

Net operating income $284,200 $872,200 $191,350

Minimum required rate of return 18.00% 17.80% 15.00%

On the basis on return on investment Division A is preferred

On the basis of residual income Division A is also preferred

Explanation:

Return on investment is the net operating income compared to the average operating assets in the year:

Division A return on investment=$284,200/$1,450,000=19.6%

Division B return on investment=$872,200/$4,900,000=17.8%

Division C return on investment=$191,350/$2,225,000 =8.60%

Residual income=net operating income-(required rate of return*average operating assets

Division A residual income=$284,200-(18%*$1,450,000)=$23200

Division B residual income=$872,200-(17.80%*$4,900,000)=$0

Division C residual income=$191,350-(15%*$2,225,000)=$=$191,350-(15%*$2,225,000)

4 0

3 years ago

intelligent industries recently purchased a $50,000, 10% 12-month bond. from intelligent’s point of view, this bond would be con

Paul [167]

from Intelligent’s point of view, this bond would be considered a current asset, because it represents a resource that can easily be converted to cash within one year.

A bond is a debt instrument. A bondholder is entitled to regular predetermined interest rate payments and at the end of the bond's tenure, the bondholder would receive the amount invested.

Current assets are assets that are expected to be sold, used, or exhausted through standard business operations with one year.

Examples of current asset are:

cash
cash equivalents
accounts receivable
stock inventory
marketable securities
pre-paid liabilities

To learn more, please check: brainly.com/question/14287268

5 0

2 years ago

The Jackson-Timberlake Wardrobe Co. just paid a dividend of $2.15 per share on its stock. The dividends are expected to grow at

tekilochka [14]

Answer:

a)

$34.4

b)

$37.20

c) $59.57

Explanation:

Given:

Dividend paid = $2.15

Growth rate = 4% = 0.04

Required return = 10.5% = 0.105

Now,

a) Present value = $\frac{\textup{Dividend paid}\times\textup{(1 +growth rate)}^n}{\textup{(Required return-Growth rate)}}$

for the current price n = 1

thus,

Current price = $\frac{\textup{Dividend paid}\times\textup{(1+growth rate)}^n}{\textup{(Required return-Growth rate)}}$

= $\frac{\textup{2.15}\times\textup{(1 +0.04)}^1}{\textup{(0.105-0.04)}}$

= $34.4

b) Price in 3 years

i.e n = 3

= $\frac{\textup{Dividend paid}\times\textup{(1 +growth rate)}^n}{\textup{(Required return-Growth rate)}}$

= $\frac{\textup{2.15}\times\textup{(1 +0.04)}^3}{\textup{(0.105-0.04)}}$

=

$37.20

c) Price in 15 years

i.e n = 15

= $\frac{\textup{Dividend paid}\times\textup{(1 +growth rate)}^n}{\textup{(Required return-Growth rate)}}$

= $\frac{\textup{2.15}\times\textup{(1 +0.04)}^{15}}{\textup{(0.105-0.04)}}$

= $59.57

4 0

3 years ago