Answer: Limited marketing
Explanation: Limited marketing strategy refers to the marketing strategy in which the organisation tries to target a specific set of customers from a target market rather than everyone.
These are opted by organisation that have unique features in the product they are offering or have specialization in a specific product among others.
In the given case, Shelly has expertise in making bakery products but her cupcakes gets special attention from the customers.
Thus, we can conclude that the decision of Shelly to open a cupcake shop is an example of limited marketing.
Answer:
The difference between two securities is 0.89%.
Explanation:
Inflation premium for the next three and five years:
Inflation premium (3) = (1.6% + 3.05% + 3.85%) ÷ 3
= 2.83%
Inflation premium (5) = (1.6% + 3.05% + 3.85% + 3.85% + 3.85%) ÷ 5
= 3.24%
Real risk-free rate = 2.35%
Since default premium and liquidity premium are zero on treasury bonds, we can now solve for the maturity risk premium:
Three-year Treasury securities = Real risk-free rate + Inflation premium (3) + MRP(3)
6.80% = 2.35% + 2.83% + MRP(3)
MRP (3) = 1.62%
Similarly,
5-year Treasury securities = Real risk-free rate + Inflation premium (5) + MRP(5)
8.10% = 2.35% + 3.24% + MRP(3)
MRP (5) = 2.51%
Thus,
MRP5 - MRP3 = 2.51% - 1.62%
= 0.89%
Therefore, the difference between two securities is 0.89%.
Answer: The Contract is valid.
Explanation:
Under the UCC’s Statute of Frauds, transactions above $500 for goods cannot be made orally alone and have to be written in writing as well. This is the law that Rosenfield relied on.
However, Fallsview can argue that the Passover Retreat is not a Good, but rather a Service in which case it does not fall under the Statute.
The main bone of contention thereby becomes, if indeed it is a service or a good.
If it is a Hybrid of both, then the Court needs to decide if the services outweigh the goods involved.
From the text we see that the following were included in the package, food, entertainment, and lectures on religious subjects.
Food is the only good there and is outweighed by Entertainment and lectures on religious subjects.
As such, the contract is valid as it is for more service than good.
The price of the share would be calculated as -
Price of share = Annual constant dividend / Cost of equity
Given, cost of equity = 10.5 %
Annual constant dividend = $ 1.60
Price of share = $ 1.60 ÷ 10.50 %
Price of share = $ 15.238 or $ 15.24
Answer:
Option A. There exist economies of scope between diversified business units
Explanation:
The reason is that diversification is lowering the industry risk of the business the company is in by investing in several other industries. This helps us to lower the risk and have a steady returns in the subsequent years. This means uncertainty related to cash flows is lowered and this has also increased the chances of cash surplus for subsequent years.
Furthermore, if the investments made in diversified business units possesses economies of scope, which means that we are in related diversification because we are manufacturing different but similar goods which are substitutes to each other from large to some extent. This brings economies of scope and would lower the total operating cost of company. Hence the <u>Option A</u> which says that economies of scope does add value to the company is the right option.
Option B is not preferable option as the option of investing in different businesses is choosen in the option A.
Option C is again the same as Option B and the difference is that it uses the word several unrelated businesses instead of comprehensive business portfolio which is the same thing. Hence <u>Option C</u> is also not preferable option here.
<u>Option D</u> is incorrect because when we acquire an organization it is the move of increase in risk portfolio because acquisitions are mostly not a sound investments and not a part of diversification strategy as the company is putting all the eggs in the single basket.
