<u>Explanation:</u>
1. As in the case of Certain-Tees, Inc., their approach follows The Fairness or Justice ethical framework. This ethical framework involves the basic belief that everyone or everything should be treated or done fairly.
2. As in the case of Sahara, Inc., and Perfect Paper executives, their approach follows the Utilitarian ethical framework. Which is the belief in doing what brings the greatest or most good to the majority.
3. As in the case of Positron Auto Parts, their approach follows The Common Good ethical framework, which relies heavily on cultural aspects to define ethical practices.
Answer:
convexity = 37.6306
Explanation:
given data:
maturity time = 7 years
yield to maturity (y) = 8% = 0.08
coupon bond = 6%
price= $89.59 ( gotten from the summation of pv(cf) from the table attached below )
t = time
convexity can be found using this formula
= 
= 37.6306
Answer:
c. 8.40%
Explanation:
Use CAPM formula to solve this question;
CAPM r = risk free + beta(Market risk premium)
expected return ;r = 12.50% or 0.125 as a decimal
0.125 = 0.02 + 1.25 (MRP)
subtract 0.02 from both sides;
0.125 - 0.02 = 1.25MRP
0.105 = 1.25MRP
Divide both sides by 1.25 to solve for MRP
0.105/1.25 = MRP
0.084 = MRP
Market risk premium (MRP) is therefore 8.40%
Answer:
Identify the segmenting dimension most likely being used by Sanders Beverages.
Behavioral
Explanation:
Marketing involves the promotion of a company's product to potential customers. Customers as a whole have different characteristics and preferences, thus the need for market segmentation. Market segmentation is the division of target customers in groups of similar characteristics. These groups are known as segments where individuals that share similar traits in term of preferences, age and location are placed into one group. There are four major types of dimensions depending on segment characteristics; demographic, psychographic, behavioral and geographic segmentation.
1. Demographic segmentation
It involves the placing of people into groups based on their demographics like; age, gender and income. Demographics help understand consumer behavior better. An example is that, a company might realize that most young people who are college goers tend to drink more beer as compared to older people. This can be important to a beer manufacturing company to target specific audience.
2. Psychographic segmentation
This is the grouping of customers based on their personality traits, values, beliefs and interests.
3. Behavioral segmentation
This is the process of grouping customers based on their consumer behavior. In our case, the consumer behavior being targeted is non-juice drinkers to determine if they will accept the new line of healthy fruit juices.
4. Geographic segmentation
This is the process of grouping customers based on their location to determine specific areas where many consumers might be located.
Answer:
C.
Explanation:
Price elasticity of demand (PED) measures the responsiveness of demand after a change in the good’s own price.
Demand is relatively inelastic if the quantity demanded changes less than proportionally to the change in price
.
In this instance, total revenue increases following an increase in price.
Inelastic product is highly unresponsive to changes in price.
If the co-efficient of price elasticity of demand <1, then demand is said to be price inelastic i.e. unresponsive to a change in price Price.
Following a change in price, the total revenue earned by the producing firm will depend on the PED for its product.
If the coefficient of PED is <1, a rise in market price (e.g. from P1 to P2) will lead to an increase in total revenue for the seller of the product.
