The formula for calculating the lifetime value of a customer the amount a person will spend MINUS the cost to maintain the relationship
<u>Explanation:</u>
Any company must measure the customer lifetime value for its success. Customers are the important factor that decides the growth of any business. They play an important role of buying the goods and services produced by any business. It is required to know how much it costs to attain new customers than retaining the older customers.
By measuring the CLTV, a company can make better decisions like the goals related to marketing, reduction in the cost related to acquisition, customer retention,etc. CLTV can be measured by subtracting the amount spent by a customer from the total cost that is spent in maintaining the relationship with that customer.
Answer:
Credit Cards
Payday Loans
Auto Loans
Explanation:
In the field of economics, credit means to have the ability of having goods or the services before the payment of the goods which can be paid later in the future to the other party.
The following can be bought on credits and can be paid in cash later on. These includes :
Credit cards -- credits card are used to purchased item on credits to which the payment is done on a later date in the future.
Payday loans -- payday loans is a type of loan or money borrowed from someone with an interest that is to be paid in the future.
Auto loans -- auto loans are available to buy a car in credit and repaying the loan in cash to the bank in installments in the future.
Answer: Option D
Explanation: Competitive advantage refers to situation when an organisation gets favorable advantage in the market over its competitors.
In the given case, Belinda is trying to establish business in the industry which already has heavy competition. Therefore, if she wants to establish a customer base, she must need some competitive advantage so that she can operate with low profits initially.
Hence from the above we can conclude that the correct option is D.
Answer:
Explanation:
a)
The YTM of the bond at par value is equals to its coupon rate, 8.75%. Other things being equal, this 4% coupon rate bond will be more eye-catching as the coupon rate is lower than the current market yields, and its price is far below the call price. So, if yields drop, capital gains on the bond will not be restricted by the call price.
b)
If an investor foresees that yields will fall considerably, the 4% bond proposes a better expected return.
c)
Implicit call protection is offered in the sense that any likely fall in yields would not be nearly enough to make the firm consider calling the bond. In this sense, the call feature is almost irrelevant
Answer:A. Commercial paper
Explanation:The form of debt financing is unlikely to be used by a firm the size of Moonworks is a commercial paper.
A commercial paper is issued by large corporation to secure funds inorder to meet a debt that has a short time duration such as payroll, and its backed only by the bank that issues it or the borrowing company promised payment on the face amount on the due date which must have been specified on the note.
