Answer:
The company can accept its customers request and it should allow all its customers to avail same discount to avoid antitrust laws violation.
Explanation:
The customers with high volume can ask for discount from the company as their bargaining power is high. The company can consider the request of its customers and grant them discount unless the company gains no profit from trade. If the transaction is profitable for the company, it will allow its customers to stay with the company and will accept their requests.
Answer:
FV= $8,913.91
Explanation:
Giving the following information:
Annual interest rate= 0.8% interest compounded monthly
Initial investment= $4,000
Number of periods= 10*12= 120
<u>First, we need to calculate the monthly interest rate:</u>
<u></u>
i= 0.08/12= 0.0067
<u>Now, using the following formula, we can calculate the future value.</u>
FV= PV*(1+i)^n
FV= 4,000*(1.0067^120)
FV= $8,913.91
Answer:
All equity plan:
EPS = $160,000 / 42,000 = $3.81
Plan I:
EPS = [$160,000 - ($108,000 x 7%)] / 39,000 = $152,440 / 39,000 = $3.91
Plan II:
EPS = [$160,000 - ($324,000 x 7%)] / 33,000 = $137,320 / 33,000 = $4.16
Plan II is better since the resulting EPS is higher than the other alternatives.
