Answer: See explanation
Explanation:
a. What stock price is expected 1 year from now?
This will be calculated as:
= P0 × (1 + g)
where,
P0 = $40
g = growth rate = 7%
= P0 × (1 + g)
= 40 × (1 + 7%)
= 40 × (1 + 0.07)
= 40 × 1.07
= $42.80
b. What is the required rate of return?
This will be:
= (D1 / P0) + g
where D1 = D0 × (1+g) = 1.75 × (1+0.07) = 1.75 × 1.07 = 1.8725
= (D1 / P0) + g
= (1.8725 / 40) + 0.07
= 0.1168
= 11.68%
Answer:
Cost of machine = $73,897.99
Explanation:
The cost of machine to Swifty Corporation the present value pf the ordinary annuity payment of $20,500 per year discounted at the interest rate of 12%.
Note that the annuity is an ordinary annuity because annual payment is made at the end of the year.
Present value of ordinary annuity= annuity factor× annual payment
Present value of ordinary annuity = 20,500× 3.60478= $73,897.99
Cost of machine = $73,897.99
Ryan is debating how to allocate the IMC budget for his new ski equipment store. He knows having knowledgeable salespeople in his store can simplify buyers' purchase decisions. He should also consider that, compared to other IMC alternatives, personal selling is
A) ineffective.
B) overrated.
c) easy.
D) simple.
E) expensive.
Answer:
A) ineffective
Explanation:
Personal selling has to do with marketing that is done by a salesman from the sale of a product/service from the manufacturer to the consumer.
The seller or salesman tries to promote his product through their attitude, appearance, manners and expert knowledge, They try to encourage the customer to buy the product, or at the very least, try the product.
IMC means Integrated Marketing Communications which makes sure that all forms of communications and messages regarding marketing and sales are carefully linked together.
Compared to IMC alternatives, personal selling is ineffective.
Answer:
Explanation:
First of all we shall calculate the present value of an annuity( at the end of 7 years ) of 1475
at interest rate of 6/12 = .5 % for total instalment of 12 x 8 = 96 ( 6% compounded monthly )
rate of intt .5% , no of instalment 96
PV of annuity of 1475
= 112252.66
This amount has to be discounted at 9 % to present value for 7 years
or calculated at 9/12 = .75% for 84 instalment
PV of 112252.66
= 59925.55
Now , we shall calculate PV of annuity of 1475 for 7 years compounted monthly ( rate of intt .75 % , no of instalment 84)
PV of annuity of 1475
= 91671.84
Total value
= 59925.55 + 91671.84
= 151597.39
Answer:
Putting the organization at risk if higher-level management is unaware of their actions
Explanation:
Decentralization is a process of top management transferring decision-making powers, particularly in relation to planning and control, by means of delegated authority away from the top, to lower levels of management.
Once this is done, of the disadvantages is that: top management might not always be aware of issues when they occur and how and when they nmay have been resolved. This could put the organisation at risk because certain issues may have been better resolved at the top by virtue of the experience of senior management. In essence, Top management might begin to loose control.
