In short, Starbucks's success can be attributed to its marketing, the environment of its establishments, and its social popularity. Starbucks has managed to present itself as an honest, morally decent, and trendy coffee house that appeals primarily to a millennial audience. Regarding their locations, Starbucks franchises offer an upscale, urban feel that is not offered by many other coffee chains. Another reason is Starbucks embracing social progress and pop culture in their advertising and business design and practices. Finally, the ingredients used in Starbucks coffee are often marketed as premium and upscale, which falls into the advertising used to convince consumers that their product is worth more, even though that objectively, their product is comparable to products that cost significantly less. In short, it is not so much the product that is being paid for, but the name and social stigma/popularity around it, and this is why people do not hesitate to pay more for Starbucks's product.
Answer:
$749.57
Explanation:
equivalent annual annuity = (NPV x rate) / [1 - (1 + rate)⁻ⁿ]
- using a calculator, the NPV = $2,630
- rate = 13.1%
- n = 5
equivalent annual annuity = ($2,630 x 0.131) / [1 - (1 + 0.131)⁻⁵] = $344.53 / 0.4596 = $749.57
The equivalent annual annuity is used to compare mutually exclusive projects and determine which yields the highest annual returns.
<h3>Your answer is a Upward Trend.</h3>
The correct answer to your question is Upward Trend. A Upward Trend is a movement in a factanal asset when the overall direction is above or upward. There are also Downwards Trends, which is when the same thing happens but the trend goes down. For example, a chart keeps going up, 9, 11, 16, 25 etc. This is an upward trend. If it goes down that would be considered a downward trend.
Answer:
The multiple choices are:
a. 7.72%
b. 5.40%
c. 5.22%
d. 7.46%
e. 4.90%
Option B is the correct answer,5.40%
Explanation:
In order to determine the after tax cost of Baxter's debt,we need to first of all calculate the pretax cost of debt which is by applying the rate formula in excel.
=rate(nper,pmt,-pv,fv)
nper is the number of coupon payments the bond would make which is 30
pmt is the annual coupon interest on the bond=7%*$1000=$70
pv is the current price of the bond minus the flotation cost=$945*(1-3%)=$916.65
The fv is the face value of $1000 per bond
=rate(30,70,-916.65,1000)
pretax cost of debt=rate=7.72%
After tax cost of debt=pretax cost of debt*(1-t)
t is th tax rate of 30% 0or 0.30
after tax cost of debt=7.72%*(1-.3)=5.40%
I’m pretty sure it’s b if not b then c but I’m pretty positive it’s b
