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Helga [31]
3 years ago
11

You are bullish on Telecom stock. The current market price is $50 per share, and you have $5,000 of your own to invest. You borr

ow an additional $5,000 from your broker at an interest rate of 8% per year and invest $10,000 in the stock. (LO 3-4) a. What will be your rate of return if the price of Telecom stock goes up by 10% during the next year
Business
1 answer:
Olenka [21]3 years ago
6 0

Answer:

12%

Explanation:

Initial investment =$5,000.00

Value of stock with 10%=$10,000*(1+10%)=$11,000

The amount repayable to the broker after one year is the amount borrowed plus interest of 8%

Amount borrowed plus interest= $5,000+( $5,000 *8%)

Amount borrowed plus interest=$5,400

Rate of return=(Value of stock with 10%-Amount borrowed plus interest-equity fund)/amount borrowed

Rate of return=($11,000-$5,400-$5000)/$5,000=12%

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If your assignment was (for each segment) to create a value proposition and product-price positioning strategy based on the segm
yanalaym [24]

Answer:

The correct answer is letter "D": Segment positioning.

Explanation:

Market segmentation refers to the classification a company makes of its customers by features such as <em>age, gender, income, lifestyles, </em>or <em>location</em>. It allows specializing in the production of one product that better matches part of the market's needs. Market segmentation has three (3) main steps: <em>Targeting, Product Positioning, </em>and <em>Deciding on a Marketing Mix</em>.

<em>The </em>segment positioning<em> stage involves developing a detailed product for the sector of the market selected and developing a marketing mix that segment. Product price and value are also set during this phase.</em>

8 0
3 years ago
Based on the above information, what is the Enterprise Value of Alibaba Group Holding Limited? Be sure to write down your answer
lesya [120]

The Enterprise Value of the Alibaba group from the given information will amount to $563,381.  

<h3>What is Enterprise Value?</h3>

The Enterprise Value can be regarded as a measure of a business' total value. It is the summation of all the creditors and equity holders at the company's end.

Using the formula and the given information, the Enterprise Value can be calculated as,

\rm Enterprise\ Value= Market\ Capitalization\ + Debt - Cash\ Balances\\\\\rm Enterprise\ Value= 721195\ - 157714\\\\\rm Enterprise\ Value= \$563,481

Hence, option C holds true regarding the Enterprise Value. The complete question has been attached with an image.

Learn more about the Enterprise Value here:

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8 0
2 years ago
ABC Company's production budget for October is based on 500 units. Standard unit cost for raw materials is $130 per unit ($10 pe
melisa1 [442]

Answer and Explanation:

The computation is shown below;

a. Raw material price variance is

= (standard price - actual price) × actual quantity

= ($10 - $11) × ($69,300 ÷ $11)

= ($10 - $11) × 6,300

= $6,300 unfavorable

b. The raw material usage variance is

= (Standard quantity - actual quantity) × standard price

= (525 × 13 - 6,300) × $10

= $5,250 favorable

In this way it should be calculated

3 0
3 years ago
Creswell Farms produces and sells clover honey and wants to expand its product line. A brainstorming session results in 40 diffe
Gwar [14]

Answer:

In this scenario, Creswell Farms is in the idea generation stage of the new product development process.  

Explanation:

Idea generation stage refers to the stage which involves the creation, development, and communication of the ideas. The process involves the construction of the idea and transforming the concepts into reality. The initiation of a project begins with the generation of the idea generation stage. In the above case, the suggestions are provided which would help the business of the product. Hence, this refers to the idea generation stage.

7 0
3 years ago
Esther and Ebenezer produce hamburgers and hot dogs. Esther can produce six hamburgers per hour or four hot dogs per hour. Ebene
Oksanka [162]

Answer:

The correct answer is Three.

Explanation:

Opportunity cost is defined as what it costs us to decide on a decision and what it costs us to carry it out. In this case Esther produces 6 hamburgers per hour and Ebenezer 3; if it were decided to choose the latter, they would stop producing 3 hamburgers since Esther produces double. This would be the opportunity cost.

3 0
3 years ago
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