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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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Cassie's Quilts alters, reconstructs, and restores heirloom quilts. Cassie has just spent $800 purchasing, cleaning, and reconst
Nataliya [291]

Answer:

The correct option is B.

Explanation:

The marginal benefit is the maximum amount which a person or individual is willing to pay in order to have an additional service or benefit. It is the additional satisfaction, which the person receives when an additional service or good is purchased.

So, in this case, Cassie need or require some special fabric which cost her $200 that is the additional amount she need to pay in order to complete the task. But alternatively, she could sell the quilt for $900. Therefore, she had a marginal benefit of $900, if sells the quilt as is now.

3 0
3 years ago
One disadvantage of a functional structure is that _____.
almond37 [142]

Answer:

It frequently lacks effective communication channels across department.

Explanation:

A functional structure is an organizational structure that is used to coordinate employees on the basis of their various skills. It helps in the categorizing of workers into smaller groups based on their area of specialty.

Advantages of functional structure include:

1) The grouping of workers into their area of specialty makes the work more efficient.

2) The individuals in a group share their various knowledge to make productivity faster.

Diasvantages of functional structure include:

1) There could be a lack of coordination among the workers.

2) Competition may arise between individuals in a group.

6 0
3 years ago
Throughout history, big business interests have almost always been at odds with environmentally friendly practices. Although big
klio [65]

Answer:TRUE

Explanation: Eco-friendly policies are policies put in place to enhance the good, conservation and protection of environment either AIR,LAND OR SEA. Eco-friendly policies can actually lead to increased profitability for business Organisations, examples include using Electric cars in place of Diesel or petrol cars, the use of Solar power in place of Diesel generators, the use of biodegradable packaging materials which have been proven to be very cost effective when compared to non-biodegradable packaging materials.

7 0
3 years ago
Which is true of an enterprise resource planning (ERP) system?
Evgesh-ka [11]

Answer:

c. It has compatibility problems with legacy systems

Explanation:

Enterprise Resource Planning possess issues with the legacy systems and that is completely a compatibility issue because of technological advancement internally in the organization that creates the same as well.

7 0
4 years ago
Assume that you manage a $10.00 million mutual fund that has a beta of 1.05 and a 9.50% required return. The risk-free rate is 4
nignag [31]

Answer:

The required rate of return of Portfolio is 8.83%

Explanation:

First we need to find the risk Premium of Existing Portfolio using the CAPM model.

Required rate of return = RF + ( Rm - RF ) x Beta

9.50% = 4.20% + ( Rm - RF ) x 1.05

9.50% - 4.20% = ( Rm - RF ) x 1.05

5.30% = (Rm - RF) x 1.05

(Rm - RF) = 5.30%/1.05

(Rm - Rf) = 5.05%

Second we need to find the New Portfolio Beta Using the Following step

Portfolio Beta = ( Existing Portfolio / Total Investment ) x Beta + ( New stock / Total Investment ) x Beta

Portfolio Beta = (10M / 15M) x 1.05 + (5M/15M) x 0.65 = 0.9167

Third Step we will use the CAPM model again to get Required Rate of Return of New Portfolio.

Required rate of return = RF + ( Rm - RF ) x Beta

Required rate of return = 4.20% + 5.05% x 0.9167

Required Rate of Return = 8.83%

5 0
3 years ago
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