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Nimfa-mama [501]
3 years ago
12

Looking at Channel 4’s strengths, their ability to appeal to different niche audiences is the highlight of the company. One of

the objectives of Channel 4 upon its creation was to appeal to audiences which typical television stations haven't. This proved to be a successful move for the company, as within their first of broadcasting achieved a 4.4% share of total Television viewership. (Channel 4 and the British Television Industry 11). This becomes an even more effective advantage for the company when we consider the value it has for the company's advertisers. Channel 4 can guarantee a "16 to 34 year old ABC1 audience at peak viewing times and very specific audience profiles for niche programming"(Channel 4 and the British Television Industry 13). Another strength of the company was their ability to make independent films. The company received 17 Oscar nominations in the year 1994, showcasing their success in the industry(Channel 4 and the British Television Industry 15).
Business
1 answer:
Colt1911 [192]3 years ago
7 0

Answer:

True

Explanation:

Remember, that the term 'company strength' is commonly used to refer to the overall advantages a company has.

Thus, when it was said that Channel has the ability to appeal to different niche audiences that they can guarantee a "16 to 34 year old ABC1 audience at peak viewing times.

Also, mention was made about the company receiving 17 Oscar nominations in the year 1994. All this facts highlights the company's strength.

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Nick wants to buy a new car, and is planning to borrow the money for his purchase from a bank. He read in the newspapers that th
Anna [14]

Answer:

True

Explanation:

Economic stimulus refers to change in monetary or fiscal policies by the Federal Reserve with growth as an objective. One of the ways of implementing economic stimulus is lowering of interest rates by the Fed.

Lowering of interest rates by the Fed would have an effect on loans availed by the public. The quantity of loanable funds shall increase which would lead to lowering of interest rates charged by the banks.

In the given case, Nick stands to gain in the sense he can avail car loan at a lower rate of interest than currently offered, if he waits for Fed to implement it's new policies.

Thus, the given statement is true.

5 0
3 years ago
You are considering two mutually exclusive projects with the following cash flows. Which project(s) should you accept if the dis
larisa [96]

Answer:

NPV Project A = - $825.31

NPV Project B = $6119.89

So, at a discount rate of 8.5%, Project B should be accepted.

NPV Project A = - $6804

Npv Project B = - $3764.48

So, at a discount rate of 13%, neither of the projects should be accepted.

Explanation:

One of the methods to evaluate a project is to determine the NPV or Net Present Value from the project. If a project provides a positive NPV after discounting the cash flows from the project at a set discount rate, the project should be accepted. If the project gives a negative NPV, the project should be discarded.

The NPV is calculated as follows,

NPV = CF1 / (1+r)  +  CF2 / (1+r)^2 + ... + CFn / (1+r)^n - Initial cost

Where,

  • CF1, CF2, ... represents the cash flows in year 1 and year 2 and so on
  • r is the discount rate

<u>At 8.5% discount rate</u>

NPV Project A = 31000/(1+0.085)  +  31000/(1+0.085)^2  +  31000/(1+0.085)^3 - 80000

NPV Project A = - $825.31

NPV Project B = 110000 / (1+0.085)^3  -  80000

NPV Project B = $6119.89

So, at a discount rate of 8.5%, Project B should be accepted.

<u>At 13% discount rate</u>

NPV Project A = 31000/(1+0.13)  +  31000/(1+0.13)^2  +  31000/(1+0.13)^3 - 80000

NPV Project A = - $6804

NPV Project B = 110000 / (1+0.13)^3  -  80000

Npv Project B = - $3764.48

So, at a discount rate of 13%, neither of the projects should be accepted.

4 0
3 years ago
Bogart Company is considering two alternatives. Alternative A will have revenues of $160,000 and costs of $100,000. Alternative
ioda

Answer and Explanation:

The computation of the increase or decrease in the net income when Alternative B should be selected rather Alternative A is given below:

<u>Particulars                Alternative A            Alternative B</u>

Revenue                   $160,000                 $180,000

Less cost                 -$100,000                 $125,000

Net income                 $60,000                $55,000

If we choose alternative B so there would be decrease in the net income by $5,000

8 0
3 years ago
HH Industries has 50 million shares that are currently trading for $4 per share and $200 million worth of debt. The debt is risk
ELEN [110]

Answer:

12%

Explanation:

For computing the equity cost of capital first we have to determine the weight of the capital structure after that the WACC and then finally equity cost of capital which is shown below:

Weight of capital structure

For debt  

= $200 million ÷ $400 million

= 0.50

For equity

= 50 million × $4 ÷ $400 million

= 0.50

Now the WACC is

= 0.50  11% + 0.50 × 5%

= 8%

Since the value fo equity is declined by

= 50 × $3

= $150

Now the equity cost of capital is

= WACC + (WACC - interest rate) × (debt ÷ equity)

= 8% + (8% - 5%) × (200 ÷ 150)

= 12%

6 0
3 years ago
3) Tobi owns a perpetuity that will pay $1,500 a year, starting one year from now. He offers to sell you all of the remaining pa
Lesechka [4]

Answer:

you should pay up to $2,737.84 to Tobi

Explanation:

first, the terminal price of the perpetuity must be determined = annual payment / r = $1,500 / .08 = $18,750

now, the present day value of the future terminal value

present value = future value / (1 + r)ⁿ = $18,750 / (1 + 8%)²⁵ = $2,737.84

5 0
2 years ago
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