Answer:
$6,400,000
Explanation:
Reduction in mailing time = 1.5 day
Reduction in clearing time = 1.5 day
Reduction in firm processing time = 1.0 day
Total = 4.0 days
Daily interest on Treasury bills = 0.025%
Average number of daily payments to lockboxes = 4,000
Average size of payment = $400
The value of the proposal will be the average number of daily payments to lockboxes multiplied by the total of 4 days which is then multiplied by the average payment size. This will be:
= 4000 × $400 × 4
= $6,400,000
Answer:
b. Forward integration.
Explanation:
<u><em>Forward integration:</em></u> is a type of marketing strategy where the company directly distribute or supply its product to the retailer, this is done so as to be to sell directly to the retailer without going through the wholesaler. This is achieved by having warehouses that is closer to the retailers where the products can be sold to the retailers or directly selling the product to the retailer from the company.
Answer:
The current stock price of Jersey Kids Corp in 2021 is expected to be $39.02.
Explanation:
The current stock price of Jersey Kids Corp in 2021 can be calculated using the formula for the dividend discount model as follows:
P2021 = D2022 / (r - g) ............................ (1)
Where,
P2021 = current stock price in 2021 = ?
D2020 = Annual dividends per share paid in 2020 = $3.00
D2021 = Annual dividends per share paid in 2021 = D2020 * (1 + g) = $3 * (1 + 0.02) = $3.06
D2022 = Annual dividends per share paid in 2022 = D2021 * (1 + g) = $3.06 * (1 + 0.02) = $3.1212
r = required return = 10%. or 0.10
g = growth rate = 2% = 0.02
Substituting the values into equation (2), we have:
P2021 = $3.1212 / (0.10 - 0.02)
P2021 = $3.1212 / 0.08
P2021 = $39.02
Therefore, the current stock price of Jersey Kids Corp in 2021 is expected to be $39.02.
Answer:
This scenario best illustrates an acquisition.
Explanation:
Acquisition refers to the situation where a company gains control of the other company by purchasing all or most of its shares. Acquisitions are common in small and medium-sized firms and may happen with or without the consent of the target company.
In the given example, Orange roof hotels are the target company that is being purchased by the Palace Hotel group which will now control the assets of the Orange roof hotels and take business decisions.
Answer: $80
Explanation:
Opportunity cost is the benefit that is foregone for an individual by choosing one alternative over other alternatives available to him.
If the opportunity cost is lower for an individual then this will benefit him whereas if the opportunity cost is higher then this will not benefit the individuals.
The opportunity cost of writing a term paper is $80 that she values by going out with a friend and it is the higher cost alternative.
