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3 years ago

Explain two reasons why accurate market research information is important

Business

1 answer:

Sergeeva-Olga [200]3 years ago

4 0

Answer:

Form partnerships with other businesses. Learning about who your customers are, such as their demographics, can help you find other small businesses that serve them. You can approach these businesses for joint promotions that'll be mutually beneficial.

Create profitable order upgrades. Knowing the other products and services that your customers tend to buy can help you come up with add-ons, product bundles, and up-sells that increase the average value of each order.

Explanation:

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You have just won the lottery and will receive $530,000 in one year. You will receive payments for 25 years, and the payments wi

polet [3.4K]

Answer:

Present value= $3,642,651.54

Explanation:

Giving the following information:

You have just won the lottery and will receive $530,000 in one year. You will receive payments for 25 years, and the payments will increase by 4 percent per year. The appropriate discount rate is 10 percent.

First, we need to calculate the final value using the following formula:

FV= {A*[(1+i)^n-1]}/i

A= annual payment= 530,000

i= 0.04 + 0.10= 0.14

n= 25

FV= {530,000*[(1.14^25)-1]}/0.14

FV= 96,391,538.43

Now, we can calculate the present value:

PV= FV/(1+i)^n

PV= 96,391,538.43/ (1.14^25)

PV= $3,642,651.54

7 0

3 years ago

Diversification is important and investing because

Lelechka [254]

You don't want all of your eggs in one basket. If one stock and/sector of the market sinks, hopefully it will be offset by your diversification.

6 0

3 years ago

A portfolio consists of the following two funds. Fund A Fund B $ Invested $ 12,000 $ 8,000 Weight 60 % 40 % Exp Return 15 % 12 %

vova2212 [387]

Answer:

Sharpen Ratio = <u> Rp - Rf</u>

standard deviation of portfolio

= <u>13.8% - 3.6%</u>

173.11%

= 0.05892

= 0.059

workings

Return of portfolio = Ra*wa + Rb*Wb

= 15%*0.6 + 12%*0.4

= 9% + 4.8% = 13.8%

Standard deviation of portfolio = square root of variance

= √ stdA²wa² + stadB²wb² + 2wawbcorrAB

= √(24%*0.6)² +(14%*0.4)² + 2*0.6*0.4*1.27

= √207.36% + 31.36% + 0.6096

= √2.9968

= 1.73

= 173.11%

Explanation:

7 0

3 years ago

Jasmine Company sold $1,000,000 of 6%, 10-year bonds at 97 on January 1, 2020. The bonds were dated January 1, 2020 and pay inte

Snowcat [4.5K]

Answer:

$62,445

Explanation:

Discount on bond payable = ($1,000,000 / 100) x (100-97) = 30,000

Number of period = 2 x 10 = 20

Discount amortized every period = 30,000 / 20 = $1,500

Interest Expense on June 30 = (1,000,000 x 6%/2) + 1500 = $31,500

Principal Payment = $50,000 - $31,500 = $18,500

Outstanding bonds = 1,000,000 - $18,500 = $981,500

Interest Expense on December 31 = ($981,500 x 6%/2) + 1500 = $30,945

Total Interest Expense in 2020 = $31,500 + $30,945 = $62,445

5 0

3 years ago

Amanda invested a total of $3 comma 100 into three separate accounts that pay 4 %, 6 % and 7 % annual interest. Amanda has thr

ludmilkaskok [199]

Answer:

the amount invested at 4% interest is $5,00

the amount invested at 6% interest is $1,100

the amount invested at 7% interest is $1,500

Explanation:

Data provided in the question:

Total amount invested = $3,100

Interest rates : 4%, 6 % and 7 %

Total interest = $191

Now,

Let the amount invested at 4% interest be 'x'

the amount invested at 6% interest be 'y'

the amount invested at 7% interest be 'z'

Therefore,

According to the question:

x + y + z = $3,100 ...........(1)

z = 3x ...............(2)

0.04x + 0.06y + 0.07z = $191 ...........(3)

From (1) and (2), we have

x + y + 3x = $3,100

4x + y = $3,100

y = $3,100 - 4x ,..........(4)

from 2, 3 and 4, we have

0.04x + 0.06( $3,100 - 4x ) + 0.07(3x) = $191

⇒ 0.04x + 186 - 0.24x + 0.21x = $191

⇒ 0.01x + 186 = $191

⇒ 0.01x = 5

x = $500

thus,

from (2)

z = 3 × 500

z = $1,500

From (4)

y = $3,100 - 4(500)

y = $1,100

Hence,

Amanda invested

the amount invested at 4% interest is $5,00

the amount invested at 6% interest is $1,100

the amount invested at 7% interest is $1,500

7 0

3 years ago