The answer to that question is “False”.
Answer:
A. Forecast for July = 42.
B. Forecast for August = 42.45
C. Because of seasonality in the banking industry.
Explanation:
A. Forecast for July = Forecast for June + Smoothing constant x (Forecasting error)
= 42 + 0.15 (42-42) = 42
B. Forecast for August = Forecast for July + 0.15 (Forecasting error)
= 42 + 0.15 (45-42) = 42.45
C. Because there is a great deal of seasonality in the processing requirements of banking industry, this forecasting method (exponential smoothing) might not be appropriate for this situation.
Answer:
r = 0.09672 or 9.672%
Explanation:
Using the constant growth model of dividend discount model, we can calculate the price of the stock today. The DDM values a stock based on the present value of the expected future dividends from the stock. The formula for price today under this model is,
P0 = D0 * (1+g) / (r - g)
Where,
D0 is the dividend paid recently
D0 * (1+g) is dividend expected for the next period /year
g is the growth rate
r is the required rate of return or cost of equity
55 = 3 * (1+0.04) / (r - 0.04)
55 * (r - 0.04) = 3.12
55r - 2.2 = 3.12
55r = 3.12 + 2.2
r = 5.32 / 55
r = 0.09672 or 9.672%
The correct is generalizable.
He wants to know whether such a test used in the advertising industry is so general that it can be applied to his personnel too - whether its scope is so broad that he doesn't have to change a thing but that it can still be suitable for his employees.
Answer:
The answer is: A) Bottom of the pyramid strategy.
Explanation:
In a bottom of the pyramid strategy a company develops new products or services that target the lower class customers in a market or are designed for the poorest regions or countries.
Digitec Company developed a very cheap laptop and will sell it on extremely poor areas. Usually a product developed specifically for this type of strategy wouldn´t be able to sell well in a richer market. For instance, not very many people would buy a $50 laptop in the US or Europe, since it probably doesn´t have the same technical specs as the rest of the competition.
