What the Honest Tea company’s employees are showcasing is a form of resistance to change. Resistance to change is a form of behavior that individuals and groups exhibit when they feel that a change that occur is threatening to them. This is displayed by the employees through their hostile comments regarding Coca Cola’s decision to purchase Honest Tea.
Thus, the best way for Seth Goldman to overcome this would be by showing visible support for the change, explaining how it would help Honest Tea serve its customers.
Answer:
D. Project A has a standard deviation of expected returns of 20%, while Project B's standard deviation is only 10%. A's returns are negatively correlated with both the firm's other assets and the returns on most stocks in the economy, while B's returns are positively correlated. Therefore, Project A is less risky to a firm and should be evaluated with a lower cost of capital.
Answer:
b. the experience curve will bottom out at some point.
Explanation:
In the case when the manager could not become complacent regarding the advantage of efficiency based cost so here the experience curve should be end up at some point of time as the experience curve shows the relationship between the production quantity in cumulative one with the production cost
Therefore the option b is correct
Answer:
Annual deposit= $6,952.82
Explanation:
Giving the following information:
You want to have $1.5 million in real dollars in a retirement account when you retire in 40 years.
Inflation rate= 2.7%
Interest rate= 10%
First, we need to deduct from the interest rate the inflation rate.
Real interest rate= 0.10 - 0.027= 0.073
Now, using the following formula, we can determine the annual deposit:
FV= {A*[(1+i)^n-1]}/i
A= annual deposit
Isolating A:
A= (FV*i)/{[(1+i)^n]-1}
A= (1,500,000*0.073) / [(1.073^40)-1]
A= $6,952.82