Answer:
A. Number of sales people employed by the firm's major competitors.
Explanation:
A sales forecast is simply a process of evaluating future sales. The number of sales people employed by a firms' competitor is not a factor to consider in developing a sales forecast. It has no influence in the actualization of a definitive sales forecast.
Answer and Explanation:
a. Here it is reasonable to presume that the treasury bond generates high returns when there is a recession.
b. The calculation of the expected rate of return and the standard deviation for each investment is shown below:
For stocks
= (Expected return of the boom × weightage of boom) + (expected return of the normal economy × weightage of normal economy) + (expected return of the recession × weightage of recession)
= (29% × 0.30) + (18% × 0.50) + (-4% × 0.20)
= 8.7% + 9% - 0.80%
= 16.9%
For bonds
= (Expected return of the boom × weightage of boom) + (expected return of the normal economy × weightage of normal economy) + (expected return of the recession × weightage of recession)
= (6% × 0.30) + (9% × 0.50) + (16% × 0.20)
= 1.8% + 4.5% + 3.2%
= 9.5%
Now the standard deviation calculation is to be shown in the excel spreadsheet
For the stock it is 11.48%
And, for the bond it is 3.5%
c. The investment that should be prefer could be computed by determine the coefficient of variation which is shown below:
Formula i.e. used is
= Standard deviation ÷ expected return
For stock, it is
= 16.9% ÷ 11.48%
= 1.47
And, for bonds it is
= 9.5% ÷ 3.5%
= 2.71
Since for the bonds the coefficient of variation is greater so the same is to be considered
Therefore the bond should be prefer
Answer:
Created by a Professor Michael E. Porter, from Harvard, this model explains the various forces applied to a business.
Competition in the industry
: Are there competitors in the industry? If so, are they numerous and weak or is the industry dominated by a few major players?
Potential of new entrants into the industry
: What's the risk of having new competition? If you are selling a product, can you protect it with a patent for example?
Power of suppliers
: Can the suppliers of what you need easily affect the prices? It's basically asking if there is competition in your suppliers' market.
Power of customers
: That related to your customer base. If your customer base is large, chances are no individual will be able to force your price down. But if you are dealing with a limited number of customers, one of them might force you to lower your prices.
Threat of substitute products: Is there any comparable product/service offered at a lower cost that might bring your prices down?
Answer:
The present Value of my winnings = $4,578,716.35
Explanation:
An annuity is a series od annual cash outflows or inflows which payable or receivable for a certain number of periods. If the annual cash flow is expected to increase by a certain percentage yearly, it is called a growing annuity.
To work out the the present value of a growing annuity,
we the formula:
PV = A/(r-g) × (1- (1+g/1+r)^n)
I will break out the formula into two parts to make the workings very clear to follow. So applying this formula, we can work out the present value of the growing annuity (winnings) as follows.
A/(r-g)
= 460,000/(12%-3%)
= $5,111,111.11
(1- (1+g/1+r)^n
1 - (1+3%)/(1+12%)^(27)
=0.8958
PV = A/(r-g) × (1- (1+g/1+r)^n)
$5,111,111.11 × $0.8958
= $4,578,716.35
The present Value of my winnings = $4,578,716.35
The amount of $130,000 in Expenses will be the least likely to be budgeted for while building a budgetary slack.
<h3>What is a budgetary slack?</h3>
This is a special consideration in a budget that seeks to increase the chances of the actual performance being better than the budget.
Joan will likely budget for $110,000 of expenses, $210,000 of revenue and $80,000 of income.
Therefore, the amount of $130,000 in Expenses will be the least likely to be budgeted for
Read more about budgetary slack
<em>brainly.com/question/15327518</em>
