Answer:
8%
Explanation:
The internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested.
The IRR can be calculated using a financial calculator.
Cash flow in year zero = $-165,000
Cash flow each year from year one to seven = $31,692
IRR = 8%
To find the IRR using a financial calacutor:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. After inputting all the cash flows, press the IRR button and then press the compute button.
I hope my answer helps you
Answer: Two
Explanation:
According to the paragraph above, the DRC produces both cotton and cottonseed. Both of these are cotton products. First the cotton that surrounds the seed is removed by the process of ginning and then processed for clothing.
Then the cottonseed can also be processed to extract the oil contained in it. This oil can be used to make candles, cosmetics and insecticide. After the oil is extracted, the seed can then be used to feed livestock.
Answer: price leadership
Explanation: Price leadership is a circumstance where one business, typically the dominant one in its market, sets prices that its rivals follow closely.
This business is typically the one with the minimum cost of production, thus being able to outperform the prices charged by any rival who tries to set their prices below the price range of the market leader.
Rivals could increase prices than the cost leader, but this would likely lead to lower share of the market unless rivals were able to distinguish their goods adequately.
Hence from the above we can conclude that the given case depicts price leadership strategy.
Answer:
Rate of return is 16.11%
Explanation:
Dividend Valuation method is used to value the stock price of a company based on the dividend paid, its growth rate and rate of return. The price is calculated by calculating present value of future dividend payment.
Formula to calculate the value of stock
Price = Dividend / ( Rate or return - growth rate )
$54 = $6 / ( Rate or return - 5% )
Rate or return - 0.05 = $6 / $54
Rate or return - 0.05 = 0.1111
Rate or return = 0.05 + 0.1111
Rate or return = 01611
Rate or return = 16.11%
Answer:
Option 1 and 2
Explanation:
Complete Question
Which scenarios can be considered effects of Sole Sister Shoe Store choosing to sell dress shoes over sneakers?
CHECK ALL THAT APPLY.
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High school athletes stop shopping there.
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The inventory of sports socks goes unsold.
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Publicity for the store declines.
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Profits decline because dress shoes cost less than sneakers
Solution
Sole Sister Shoe Store chooses to sell dress shoes over sneakers because the customers of sneakers stopped shopping from the store. Sneakers are mainly purchased by the high school athletes over any other footwear. Now, they stopped shopping and hence Sole Sister Shoe Store started selling dress shoes
Also, sports socks' inventory is unsold indicating the reduction in sale of sneakers and hence the Sole Sister Shoe Store started selling dress shoes
