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QveST [7]
3 years ago
13

Connor Corp. has large amount of data that they are trying to analyze from the last 15 years. They have an arithmetic sales grow

th average of 12% and a geometric average growth of 9%. Using Blume’s formula, what would the forecast sales growth be for the next five years?

Business
1 answer:
MrRa [10]3 years ago
7 0

Answer:

11.14%

Explanation:

Blume's formula is used to combine both arithmetic and geometric returns. This is because using arithmetic growth rate exclusively would be overly optimistic for longer time horizons and on the other hand, using geometric growth rates exclusively would be overly pessimistic for short time horizons.

Using the attached formula, plug in the given numbers;

R(T) would be the sale growth rate we need to calculate.

R(T) = \frac{5-1}{15-1} *0.09 + \frac{15-5}{15-1} *0.12

R(T) =0.0257 + 0.0857

R(T) = 0.1114 as a decimal

Therefore, the forecast sales growth would be 11.14%

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How do birthrates and death rates change as a country moves from a least developed or traditional economy to developing-nation s
oksian1 [2.3K]

As a country makes the transition from a least developed economy to developing nation status the Birthrates and Death Rates will increase. Birthrates will increase due to immigration. The healthcare services generally improves when a country develops more and becomes more industrialized. It helps improve the economy which in turn gives more people the opportunity to have more children and to lead healthier lives. So the birth rates go up. Death rates will go up too due to an increase in criminal activity.

7 0
3 years ago
The Nixon Corporation’s common stock has a beta of 1.7. If the risk-free rate is 4.8 percent and the expected return on the mark
Archy [21]

Answer:

13.64%

Explanation:

In this question, we apply the Capital Asset Pricing Model (CAPM) formula which is shown below

Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)

= 4.8% + 1.7 × (10% - 4.8%)

= 4.8% + 1.7 × 5.2%

= 4.8% + 8.84%

= 13.64%

The (Market rate of return - Risk-free rate of return)  is also called market risk premium

6 0
3 years ago
3. This year, Paula and Simon (married filing jointly) estimate that their tax liability will be $200,000. Last year, their tota
choli [55]

Answer:

When a taxpayer has an underpayment of estimated tax or fall behind on his/her tax prepayment, then he/she is required to pay a penalty on Form 2210. This penalty is called underpayment penalty.

According to the tax laws, Mr. P and Ms. S can avoid an underpayment penalty if their withholding's and estimated tax payments equal or exceed one of the following two safe harbors:

  • 90 percent of current tax liability ($200,000 x 90% = $180,000)
  • 110 percent of previous year tax liability (110% x $170,000 = $187,000)

From the above calculation, it is clear that Mr. P and Ms. S's withholding's ($175,000) do not equal or exceed the amount of two safe harbors. So, they need to increase their withholding's or make estimated payments to avoid underpayment penalty.

If Mr. P and Ms. S increase their withholding's by $5,000 or make estimated payments of $1,250

per quarter ($5000/4), they can avoid the underpayment penalty.

Mr. Paula and Simon average gross income is greater than $150,000, so 110% is taken.

7 0
3 years ago
Read 2 more answers
When an organization selects a single, primary target market and focuses all its energies on providing a product to fit that mar
sammy [17]

Answer:

Concentrated Targeting Strategy

Explanation:

Concentrated Targeting Strategy refers to a situation in which an organization focus its marketing efforts on only a specific segment of the market. That is, only one marketing mix is developed.

Concentrated Targeting Strategy allows the producer focus on the needs and wants of a particular segment of the consumers/ population. The producer directs all it's efforts to the satisfaction of a segment of the consumers.

Concentrated Targeting Strategy could be disadvantageous if the demand of the focused segment of consumers is low. Low demand will affect the financial position of an organization.

5 0
3 years ago
Reece is trying to increase the number of products he sells every week so he will get a promotion this year. What are accurate w
gizmo_the_mogwai [7]

Answer:

intermediate goal

career goal

Explanation:

A goal is a desired result am individual wants to achieve in the future. Goals are usually time bound, that is they are meant to be achieved in a given time frame.

In the given instance Reece is trying to increase the number of products he sells every week so he will get a promotion this year.

With regards to duration goals can be short term, intermediate, or long term.

His goal of increasing weekly sales is an intermediate one.

Career goals are those that are measured by level of achievement on one's job. Reece is looking at getting a promotion in this year.

5 0
3 years ago
Read 2 more answers
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