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AlladinOne [14]
3 years ago
15

Lori contracts to buy coffee beans for her store from Mike. The contract price is $7.50 per pound of Costa Rican coffee. Mike br

eaches the contract and delivers no coffee. Lori’s damages will likely be
Business
1 answer:
Ksju [112]3 years ago
4 0

Answer:

the difference between the contract price of coffee and what Lori will have to pay to secure alternative coffee

Explanation:

Lori wanted to buy coffee beans for that she paid the contract price of $7.50 per pounds to mike. Mike has breached the contract which is why Lori has lost $7.50.  Now to buy coffee beans she will contact some other supplier and pay them to secure alternative coffee. So, in total Lori's damages are the contract price of coffee and what she will pay some other vendor to secure coffee beans.

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4 0
3 years ago
Sonny's BBQ Company recently issued $85 par value preferred stock that pays an annual dividend of $9. Analysts estimate that the
Bond [772]

Answer:

Intrinsic value=$73.77

Explanation:

<em>The Dividend Valuation Model(DVM) is a technique used to value the worth of an asset.</em>

<em> According to this model, the value of an asset is the sum of the present values of the future cash flows would that arise from the asset discounted at the required rate of return.</em>

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Kp- cost of preferred stock

So will need to work out the cost of equity using CAPM

<em>The capital asset pricing model (CAPM)</em>: relates the price of a share to the market risk or systematic risk. The systematic risk is that which affects all the all the economic agents, e.g inflation, interest rate e.t.c  

This model is considered superior to DVM. Hence, we will use the CAPM

Using the CAPM , the expected return on a asset is given as follows:  

E(r)= Rf +β(Rm-Rf)  

E(r) =? , Rf- 2.4%, Rm- 12.1% β- 1.01

E(r) = 2.4% + 1.23×(12.1- 2.4)%  = 12.20 %

Cost of preferred stock= 12.20 %

Using the dividend valuation model

Intrinsic value = 9/0.1220=73.77

Intrinsic value=$73.77

5 0
3 years ago
Name and briefly describe the three essential principles of test construction
Alika [10]
Three essential <span>principles of test construction are:
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7 0
3 years ago
With Dollar Shave Club, you can sign up online for a subscription of shaving and personal care products to be delivered to your
ch4aika [34]

In the case of Dollar Shave Club described above, the business uses the Direct Marketing Channel.

<h3>What is Direct Marketing Channel?</h3>

The direct marketing channel is used when advertising products outside of fixed retail outlets.

When people buy our products online in this day and age, direct marketing is used.

In place of an established offline marketing position, the online outlet now serves as a channel for selling to customers directly.

Direct marketing techniques include emails, online ads, flyers, database marketing, promotional letters, newspapers, outdoor advertising, phone text messaging, magazine ads, coupons, phone calls, postcards, websites, and catalog distribution.

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To know more about direct marketing channels refer to:  brainly.com/question/15331624

#SPJ4

6 0
1 year ago
__________ appeals help consumers make purchase decisions by offering facts in advertising messages and strong arguments built a
olga nikolaevna [1]

Answer:

A niche market

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<u>A niche market</u> appeals to help consumers make purchase decisions <em>by defining the product features intended to satisfy the specific market needs, as well as the price range, quality of production and the demographics</em> that it is intended to target.

By doing so, the company becomes a market leader and it becomes possible for other firms to enter that particular segment.

6 0
3 years ago
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