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kobusy [5.1K]
3 years ago
7

Jonni has just started with a travel agency and has been offering clients and prospective clients a range of packaged tours. She

is concerned because the commissions she is earning on her sales are lower than she had hoped. Her colleague Andrew, who has been with the agency for several years, is having a great deal of success by working closely with the clients, seeking their ideas, and building customized tour packages for each one based on their suggestions. Andrew’s approach is based on
Business
1 answer:
weqwewe [10]3 years ago
4 0

Answer:

Co-Creation of value

Explanation:

Various action that increases the worth of business, services and goods is called value creation.

Co-creation of value is a business strategy.  In this strategy  the company encourages and promotes active involvement of the customer] for the creation of customized or on demand products. With co-creation the customers get exactly the type of product they want.  Customer input plays an important role in value co creation.

Some shoe companies allows the customers to give their input so that they can customize the shoe as per the customers needs, it is an example of value co creation.

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Comparative advantage is the ability to convince others of the best choices to make in their own self-interest. perform an activ
Ira Lisetskai [31]

Answer:

The correct answer is letter "B": perform an activity at a lower opportunity cost.

Explanation:

Comparative advantage is the ability of an individual, company, or country to produce a good or service at a lower opportunity cost than its competitor. Having a comparative advantage does not mean that one entity is absolutely better than another at producing a good or service. It means that it sacrifices less to do so.

3 0
3 years ago
Barton Industries expects that its target capital structure for raising funds in the future for its capital budget will consist
iris [78.8K]

Answer:

a. With New Stock = 8.307%

b. With Old stock = 7.971%

Explanation:

The weighted average cost of capital (WACC) defines the cost rate that blends the capital structure cost including equity, debt, and preferred stock.

Requirement A

If it uses retained earnings as its source of common equity,

Given,

The weight of the combination of the capital structure is -

W_{d} = 40% = 0.40; W_{p} = 5% = 0.05; W_{e} = 55% = 0.55

For cost of debt, we have to find cost of debt after tax, R_{d}(1 - t) =

6.9% x (1 - 0.40) = 4.14%

Cost of preferred stock, R_{p} = 6.4%

Cost of new Equity, R_{e} = 11.51%

We know, the weighted average cost of capital (WACC) =

W_{d} x R_{d} + W_{p} x R_{p} + W_{e} x R_{e}

= (0.40 x 4.14%) + (0.05 x 6.4%) + (0.55 x 11.51%)

= 1.656% + 0.32% + 6.3305%

= 8.307%

Requirement B

If it has to issue new common stock, the weighted average cost of capital (WACC) = W_{d} x R_{d} + W_{p} x R_{p} + W_{s} x R_{s}

Given,

The weight of the combination of the capital structure is -

W_{d} = 40% = 0.40; W_{p} = 5% = 0.05; W_{e} = 55% = 0.55

For cost of debt, we have to find cost of debt after tax, R_{d}(1 - t) =

6.9% x (1 - 0.40) = 4.14%

Cost of preferred stock, R_{p} = 6.4%

Cost of new Equity, R_{s} = 10.9%

Therefore, putting the value in the equation,

WACC = (0.40 x 4.14%) + (0.05 x 6.4%) + (0.55 x 10.9%)

WACC = 1.656% + 0.32% + 5.995%

WACC = 7.971%

4 0
3 years ago
What is a drug cartel
Leni [432]

<em>Answer:</em>

<em>A drug cartel is a criminal organization with the intention of supplying drug trafficking operations. They range from loosely managed agreements among various drug traffickers to formalized commercial enterprises.</em>

<em></em>

3 0
3 years ago
The financial analysis component of a business plan is to describe _____.
umka2103 [35]
The financial analysis component of a business plan is to describe the viability, stability and profitability of a business, sub-business or project.
<span>It is an aspect of the overall business finance function which includes the examining historical data to acquire information about the current and future financial health of a company, business or project.</span>
8 0
3 years ago
On december 1, 2016, escobar consulting, which uses a calendar year as its fiscal year, signs a $4,000, 12%, four-month note pay
loris [4]
The journal entry to record the payment of the note and entire interest on april 1, 2017 is as follows; Debit Notes Payable $4,000, Debit Interest Expense 120, Debit Interest Payable 40, <span>Credit Cash $4,160.

April 1,2017
       Notes payable     $4,000
       Interest expense    $120
       Interest payable       $40
                       Cash                  $4,160</span>
7 0
3 years ago
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