Answer:
Explanation:
Assume the initial invest at the beginning is $100.
The investment at end of year 4 is:
100 x 1.16 x 1.11 x 1.1 x 1.1 = 155.80
a) CAGR over the 4 years = (155.8 / 100 ) ^ (1/4) = 11.72%
b) Average annual return over 4 years = (16% +11% + 10% +10%) /4 = 11.75%
c) Since the returns over the 4 year period are not much volatile, average annual return is a better measure.
If the investment's returns are independent and identically distributed, Average annual return will be the better measure because there is no correlation between returns over the years and thus there is no point to take into consideration the compounding effect by using CAGR.
Answer: Advertising seeks to appeal to a mass audience with a uniform message.
Explanation:
Answer:
11.5%
Explanation:
The computation of the weighted average cost of capital is shown below:
= Weightage of debt × cost of debt × ( 1- tax rate) + (Weightage of common stock) × (cost of common stock)
= (0.50 × 5%) × ( 1 - 40%) + (0.50 × 20%)
= 1.5% + 10%
= 11.5%
Basically we multiplied the weightage of capital structure with its cost so that the weighted average cost of capital could come
Answer:
Explanation:
Initiation phase is the first phase of a project management where the project is evaluated to know the purposes it has to be done , how it will be done and the resources needed to execute it.
At this stage , Samantha's team has to clarify and justify the project's purposes and feasibility in order to know why it has to be done and also how it will be completed and its purpose achieved.
Answer:
Pricing strategy to stay competitive
Explanation:
Pricing strategy is the process by which a company sets prices of goods and services offered to a consumer.
In setting up a price strategy the management.of a business need to put into consideration the competitive reaction, pricing position, pricing segment, and pricing capability.
The generic drugs companies in the US are selling fluconazole for a higher price than pharmaceutical company with headquarters in India in the international market.
In order for them to stay competitive they will need to review their price downward or customers will switch to the cheaper option
