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natita [175]
3 years ago
6

Jenae's study ignored the fact that only some of her coffee choices had caffeine, even though her co-workers preferred caffeinat

ed coffee. Therefore, Jenae decided to label one type of decaffeinated coffee as having caffeine to see what would happen. As she anticipated, this coffee became more popular with her co-workers, and they claimed that the extra boost of caffeine helped them focus on their work. The growing popularity of the decaffeinated coffee among co-workers, under the false impression that it gave them extra caffeine, is an example of ________.
Business
1 answer:
ch4aika [34]3 years ago
8 0

Answer:

Placebo effect

Explanation:

Placebo effect occurs when an individual starts to show positive response to an inactive substance after being told the substance has powers to cure.

The person's mind subconsciously helps him heal or perform better on the false belief that the substance is effective.

In the given scenario Jeanne labelled decaffeinated coffee as caffeinated coffee. On consumption her co-workers claimed that the extra boost of caffeine helped them focus on their work.

This is a placebo effect.

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Floyd Industries stock has a beta of 1.30. The company just paid a dividend of $.30, and the dividends are expected to grow at 4
CaHeK987 [17]

Answer:

a. Cost of Equity is 4.50%

b. Cost of Equity is 15.55%

Explanation:

a.

The formula for price of a stock using the constant growth model of the DDM approach is,

P0 = D0 * (1+g) / r - g

Plugging in the available values,

62 = 0.3 * (1+0.04)  /  (r - 0.04)

62 * (r - 0.04) = 0.312

62r - 2.48 = 0.312

62r = 0.312 + 2.48

r = 2.792 / 62

r = 0.045 or 4.5%

b.

SML (r) = rRF + β * (rM - rRF)

Plugging in the values,

r = 0.045 + 1.3 * ( 0.13 - 0.045)  

r = 0.1555 or 15.55%

7 0
3 years ago
The flexible budget performance report directs management's attention to areas where corrective
enot [183]
The flexible budget performance report directs managements attention to areas where corrective action can help control operations. Management uses the report to determine price and quantity variances.
4 0
4 years ago
Cathy uses, on her new recording drive by, the melody of a song written by earl, without earl's permission. this is
Alexandra [31]
This is copyright infringement.
7 0
3 years ago
Rexford Corporation produces three products, with costs and selling prices as follows: Product A Product B Product C Machine hou
Alex787 [66]

Answer:

$9,400

Explanation:

For computing the maximum contribution margin we need to do following calculations

Contribution Margin

Product A = ($12 ÷3) = 4

Product B = ($5 ÷ 1) = 5

Product C = ($9 ÷ 2) = 4.50

So, the ranking order would be product B > product C > product A

Now

Total machine hours available = 2,100 hours

And,

Time for making 500 units of B

= 500 × 1

= 500 hours

For making 500 units of C, the time taken is  

= 500 × 2

= 1000 hours

So the remaining hours left is

= 2,100 hours - 1,000 hours - 500 hours

= 600 hours  

So, for A the manufactured is

= 600 ÷ 3

= 200

And, finally the Maximum contribution margin  is

= (200 × $12) + (500 × 5) + (500 × 9)

= $2,400 + $2,500 + $4,500

= $9,400

7 0
4 years ago
A customer buys 100 shares of ABC stock at $44 and sells 1 ABC Jan 45 Call at $5. Subsequently, the market price of ABC goes to
Allisa [31]

Answer:

loss = $1,000

Explanation:

the customer will receive $5 (call price) + $44 (call price) = $49 for every share  that he/she owns.

since the market price was $59, then the customer lost $59 - $49 = $10 for every share that he/she owned, resulting in a total loss = $10 per share x 100 shares = $1,000

A call option gives the buyer the option to purchase a stock at a set price during a specific time frame.

3 0
3 years ago
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