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Lelechka [254]
3 years ago
8

BK Books is an online book retailer that also has 10,000 "bricks and mortar" outlets worldwide. You are a risk-neutral manager w

ithin the CorporateFinance Division and are in dire need of a new financial analyst. You onlyinterview students from the top MBAprograms in your area. Thanks to yourscreening mechanisms and contacts, the students you interview ultimately dif-fer only with respect to the wage that they are willing to accept. About 5 per-cent of acceptable candidates are willing to accept a salary of $60,000, while95 percent demand a salary of $110,000. There are two phases to the inter-view process that every interviewee must go through. Phase 1 is the initialone-hour on-campus interview. All candidates interviewed in Phase 1 are alsoinvited to Phase 2 of the interview, which consists of a five-hour office visit.In all, you spend six hours interviewing each candidate and value this time at$750. In addition, it costs a total of $4,250 in travel expenses to interview each candidate. you are very impressed with the first interviewee completing both phases of bk books’s interviewing process, and she has indicated that her reservation salary is $110,000. should you make her an offer at that salary or continue the interviewing process? explain.
Business
1 answer:
krek1111 [17]3 years ago
7 0

Answer: Therefore, we should make her an offer at that salary

Explanation:

Based on the information given in the question,

Lowest salary = $60,000

Highest salary = $110,000

Expected Benefit = 5% × ($110,000 - $60,000) = 5% × $50,000 = $2500

The cost of conducting another interview will be:

= cost of time + cost of travel

= $750 + $4250

= $5000

Since the cost of conducting the additional interview is more than the expected benefit, therefore the interviewee should be hired rather than continuing the interviewing process.

Therefore, we should make her an offer at that salary.

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Which of the following is not a good example of a marketing-related key success factor?
igomit [66]

Answer: A. a well-known and well-respected brand name

Explanation:

Good examples of a marketing-related key success factor include breadth of product line and product selection, proven ability to improve production processes, clever advertising and courteous, personalized customer service.

Therefore, a well-known and well-respected brand name is not among the options for Marketing related success factors.

4 0
3 years ago
You are called in as a financial analyst to appraise the bonds of Olsen's Clothing Stores. The $1,000 par value bonds have a quo
Dominik [7]

Solution:

a.

N I/Y PV PMT FV

10 × 2 10 / 2 CPT

PV −1,000.00 100 / 2 1,000

10%/2=5% *1000= 50

n=20

i=5%

pmt 50

fv 1000

Answer: $1,000.00

b.

N I/Y PV PMT FV

5 × 2 10 / 2 CPT

PV −1,000.00 100 / 2 1,000

n=8

pmt 50

i 5%

fv 1000

Answer: $1,000.00

a.

Appendix D

Present value of interest payments:

PVA = A × PVIFA (5%, 20)

= $50 × 12.462

= $623.10

Appendix B

Present value of principal payment at maturity:

PV = FV × PVIF (5%, 20)

= $1,000 × .377

= $377.00

Bond price = $623.10 + 377.00

= $1,000.10

b.

Appendix D

Present value of interest payments:

PVA = A × PVIFA (5%, 10)

= $50 × 7.722

= $386.10

Appendix B

Present value of principal payment at maturity:

PV = FV × PVIF (5%, 10)

= $1,000 × .614

= $614.00

Bond price = $386.10 + 614.00

= $1,000.10

6 0
3 years ago
If you were reviewing a Financial company such as JPMorgan Chase, which of the following metrics is most relevant?
Elena L [17]

Answer: A) Net Interest Margin.

Explanation:

JPMorgan Chase as a financial company would not deal with actual inventory so the Days sales outstanding is not a relevant measure. Neither is the SSS as the company is not a retail chain.

The relevant metric would be the Net Interest Margin which is used to measure the difference between the interest income that a bank or similar financial institution makes vs the interest payments that the company will pay out to its lenders.

7 0
3 years ago
Suppose that there is a financial crisis, and people choose to spend less. As a result, velocity drops by 5 percent. According t
lions [1.4K]

Answer:

Eight(8) percent

Explanation:

Base on the scenario been described in the question, the fed will need to the supply of money by eight (8) percent in to achieve their target.

8 0
3 years ago
Sonor Systems undertakes its own machine maintenance. The depreciation on the equipment is $20,000 per year and operating cost i
NISA [10]

Answer:

d.$570,000

Explanation:

Please see attachment

5 0
3 years ago
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