#2) What is the price of a 9-year, 12-percent, annual coupon bond when the market rate is 9 percent? The face value is $100.
A) $108.00
B) $121.31
C) $117.99
D) $84.01
In: Finance
You can invest in 3 companies and purchase 100 shares of common stock in each. Which 3 companies would you pick and why? Please list the stock symbol and the current stock price.
In: Finance
Determine the cross price elasticity of demand of Coke and the type of good relative to Pepsi. The inverse demand function isPCoke=1000+PPepsi-Q,PCoke=500 and PPepsi=100. What is the interpretation of your result?
In: Economics
Demand: QD = 100 - 2p Supply: QS = 3p
If government imposes a 10% ad valorem tax to be collected from sellers, what is the price consumers will pay? How much tax revenue is collected?
In: Economics
1) Assume you buy 100 shares of stock at $40 per share on margin. The initial margin is 50%. If the price rises to $55 per share, what is your percentage gain on the initial equity?
In: Finance
Use Monte Carlo method (discounted expected value) to price a butterfly spread with=9,10,11,T−t=0.125,S=9and r=0.08, volatility=0.4first without Antithetic Sampling (100 N’s)
In: Economics
n = 10 r0,0 = 5% u = 1.1 d = 0.9 q = 1 - q = ½
Compute the price of a zero-coupon bond (ZCB) that matures at time t=10 and that has face value 100.
In: Finance
1. The production function for the shoe producing company is Q=KL 2, with the price of capital and labor fixed at $10 and $15 respectively. what combination of capital and labor minimizes the cost of producing 100 shoes?
In: Economics
Positioning Basket of Goodies is positioning itself as an upscale manufacturer of gourmet gift baskets through the introduction of several production baskets as well as custom options. BOG will achieve this positioning by leveraging their competitive advantages. The competitive advantage is based on two factors, low overhead which supports reasonable prices, and an unrelenting desire for the highest quality product and service. 1. Overhead- BOG's overhead is particularly low because it is a home based business. Most of BOG's competition is based in retail shopping areas. While they receive more walk by traffic and therefore higher sales numbers, their rent is a very large monthly expense. BOG avoids this large expense by having the business run out of owner Susan Presento's home. Additionally, Susan will be using a modified version of JIT (just in time) inventory and assembling. Susan's husband passes by 90% of Susan's vendors on his way home from work so Susan is able to order inventory when she needs it and have her husband pick it up on the way home from work. This significantly lowers shipping costs and carrying costs for The Basket of Goodies Page 8 inventory. BOG will have some of the standard baskets in stock for walk by orders, but will try not to have large amounts in overhead. 2. Unrelenting desire for the highest quality product and service- Let's face it, this market space is already crowded and a mediocre gift basket service is not going to fly, so Basket of Goodies must have some sort of differentiating feature that lets it stand out. Susan only uses the finest quality ingredients and can afford to because of her low overhead. Additionally, she always follows the maxim that the customer must be 100% satisfied. That means she is willing to loose money on an occassional order, if necessary, to please a customer, confident that in the long run this is a wise business decision. 3.6 Strategies The single objective is to position Basket of Goodies as a manufacturer of unique, attractive, gourmet gift baskets for individuals as well as corporate customers. The marketing strategy will seek to create customer awareness regarding the product offerings, develop the customer base, and work toward building customer loyalty and referrals that will significantly decrease customer acquisition costs. BOG will seek to communicate the message that they offer a higher quality, gourmet alternative for gift baskets relative to the baskets currently available. This message will be communicated through various methods, tailored to each target market. The first method will be the use of a Website. The Website will have product information, company information, as well as ordering information and order taking. The site will be useful to both targeted groups, individuals as well as corporate customers. The second method will be brochures, primarily marketing to individuals. These brochures will be dispersed through many different sources. The last method of communication is networking and it is primarily for the corporate customer. Before founding Basket of Goodies Susan worked within the Human Resource Department of several larger corporations and has developed a large list of contacts. Susan will leverage these personal/professional relationships to generate business for BOG. Since she has worked within the HR departments before, she is quite familiar with the buying habits and decision making processes; key knowledge for generating corporate sales. 3.7 Marketing Mix BOG's marketing mix consists of the following approaches to pricing, distribution, advertising and promotion, and customer service. • Pricing- BOG will be charging a per basket fee for the stock production baskets. Regarding the custom baskets, a price can be quoted once the customer decides on the ingredients that they want. • Distribution- While the orders for the baskets can be placed on our secure Website, by phone, or at the office, the distribution of the product will occur from the office and can be shipped to any continental U.S. address. • Advertising and Promotion- A Website, brochures, and networking will be used to raise awareness and generate sales. • Customer Service- Following benchmark companies such as L.L. Bean, Eddie Bauer, and Siemens, customer service will be a priority. Susan truly believes that reputation is everything.
Question: What are the sales promotions/techniques discussed?
In: Economics
When the price is $30 per unit, buyers in a market are willing to buy 400 gadgets and when the price is $60 per unit, they are only willing to buy 100 gadgets. When the price is $30 per unit, sellers in a market are only willing to sell 150 gadgets and when the price is $60 per unit, they are willing to sell 225 gadgets. Assume (1) the economic environment of buyers (their income, tastes or preferences, other prices, and expectations) and sellers (technology, input prices, etc.) are constant and (2) the demand and supply curves are linear all along. Determine the shortage or glut if the price in the market is $30 per unit.
In: Economics