Conducting market research on your target audience before building a marketing plan allows you to understand your customers/clients and their needs. By completing a marketing plan that includes demographical research as well as spending and purchasing goals and plans, you can understand how to adjust each of the 4 Ps (Price, Place, Promotion, and Product) to create value for your customers and differentiate your product in the marketplace.
This question is mainly about YOUR opinion. Many will say that it will, but some will say it shouldn't. This is based entirely on your opinion.
Answer:
The new real interest rate is 15%
and the lender was hurt.
O 15%; lender
Explanation:
a) Data and Calculations:
Fixed nominal interest rate = 13%
Real interest rate for the bank's profit margin = 10%
Inflation rate = 3% (13% - 10%)
Unanticipated inflation rate = 7%
Nominal interest rate = 17% (10% + 7%)
But the bank could not increase its fixed nominal interest rate to match the nominal interest rate.
<u>Solution and Explanation:</u>
<u>The total return is as follows:
</u>
Total return = (Closing price – opening price + dividend) / opening price
= -8.54%
Therefore, the total return is -8.54%
b. Dividend yield is as follows;
Dividend yield = Dividend / opening price
= $1.45 divided by $65
= 2.23%
Therefore, the dividend yield is 2.23%
c. the capital gain yield is as follows;
Capital gain yield = (Closing price – opening price) / opening price
= -10.77%
Answer:
b. should be; should definitely not be
Explanation:
When conducting a capital budgeting analysis and attempting to account for effects of exchange rate movements for a foreign project, inflation <u>should be </u>included explicitly in the cash flow analysis, and debt payments by the subsidiary <u>should definitely not be</u> included explicitly in the cash flow analysis.
Inflation and movements in exchange rates reduces and impacts the value of cashflows and the real returns to be derived from an investment and must be considered in every investment analysis to take account of the time value of money.
Debt payments are NOT a requirement in investment analysis because the interest rate of the loans have been factored into the cost of capital with which the cashflows have been discounted
