The answer is recency. This part of the RFM model. It is a marketing investigation tool used to classify a firm's best customers by calculating definite factors.
The RFM model is founded on three quantitative factors which are:
Recency - How recently a customer has made an acquisition or purchase of productFrequency – How frequent or often a customer makes a purchaseMonetary Value - How much cash a customer spends on purchases
RFM analysis often sustains the marketing saying that "80% of business comes from 20% of the customers."
Answer:
This scenario best illustrates organizational innovation
Explanation:
Answer:
The entry will be:
May 3
Dr Allowances for doubtful debt 3,700
Cr Account Receivable 3,700
(to record written-off of receivables)
Explanation:
As the company uses the allowance method of accounting for uncollectible accounts, the company would actively review and book bad debt expenses for any debt in doubt of collection. The entry would be: Dr Bad Debt Expenses & Cr Allowance for doubtful debt.
When there is sufficient evidences that these debts go default, no more expenses will be recorded, instead, the account receivable will be written off ( Cr) with the offsetting entry is Dr Allowance for doubtful debt.
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Answer:
The value of the stock today is $60.48 and option A is the correct answer.
Explanation:
The two stage growth model of DDM will be used to calculate the value of this stock today. The two stage growth model is used when there are 2 different dividend growth rates. The 30% growth rate can be termed as g1 while the 7% growth rate which is assumed to remain constant forever can be termed as g2.
The formula for price/value under this model is,
Value or P0 = D1 / (1+r) + D2 / (1+r)^2 + ... + Dn / (1+r)^n +
[Dn * (1+g2) / (r - g2)] / (1+r)^n
Value today = 0.8 * (1+0.3) / (1+0.1) + 0.8 * (1+0.3)^2 / (1+0.1)^2 +
0.8 * (1+0.3)^3 / (1+0.1)^3 + 0.8 * (1+0.3)^4 / (1+0.1)^4 +
[ (0.8 * (1+0.3)^4 * (1+0.07) / (0.1 - 0.07)) / (1+0.1)^4 ]
Value today = $60.60 which is closest to $60.48 and A is the answer.
The difference of $0.12 in the answer is because of the rounding off as the immediate calculations were not rounded off in the calculation of $60.60
