You own a business similar to Starbucks and are in the process of analyzing two of your customers, Natasha and Boris, and how each of them impacts your business. In particular, Natasha buys 14 lattes each week and also buys 7 breakfasts per week at your business. The price of each latte is $4 and she spends $8 on each breakfast. She will likely continue to do this for the next 27 years. Boris buys 14 lattes each week and also buys 7 breakfasts per week at your business. He also spends $8 on each breakfast. He will likely continue to do this for the next 9 years.
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Natasha’s lifetime value at your business is equal to ____________________. |
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Compared to Boris, Natasha falls into the ____________________ relationship group. |
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Boris’s approximate lifetime value at your business is equal to ____________________. |
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Compared to Natasha, Boris falls into the ____________________ relationship group. |
In: Operations Management
27. The reserve ratio is the
Multiple Choice
percentage of total deposits that are held as bank reserves.
number of deposit dollars the banking system can create.
fraction of deposits that banks hold as excess reserves.
percentage of excess reserves held by banks.
28. The discount rate is the interest rate charged by
Multiple Choice
the Federal Reserve when it lends money to private banks.
a private bank when it lends money to commercial customers.
a regional Fed bank when it lends money to another regional Fed bank.
a private bank when it lends money to another private bank.
29. If the Fed is concerned about inflation, it should
Multiple Choice
buy bonds or reduce the discount rate.
buy bonds or raise the discount rate.
sell bonds or reduce the discount rate.
sell bonds or raise the discount rate.
In: Economics
) Hitaki Sales Inc. began the month of July with
$562,500 of current assets, a current ratio of 2.25:1, and an
acid-test ratio of 1.00:1. During the month, it completed the
following transactions (the company uses a perpetual inventory
system). (50 points)
July 3 Purchased $67,500 of merchandise
inventory on credit.
10 Sold merchandise inventory that cost
$75,000 for $120,000 cash.
12 Collected $40,000 cash on an account
receivable.
14 Paid $32,000 cash to settle an account
payable.
16 Wrote off a $10,000 bad debt against
the Allowance for Doubtful Accounts.
20 Declared a $2 per share cash dividend
on its 30,000 shares of outstanding common stock.
22 Paid the dividend declared on July
22.
24 Borrowed $75,000 cash by giving the bank a 90-day,
6% note.
26 Borrowed $75,000 cash by signing a
long-term secured note.
27 Used the $80,000 cash proceeds from the
notes to buy new machinery.
Prepare a table showing Kiwi Java Time’s (1) current ratio, (2)
acid-test ratio, and (3) working capital, after each transaction.
Round ratios to two decimals.
Transaction Current
Quick
Current
Current
Acid-Test
Working
Assets Assets
Liabilities Ratio
Ratio
Capital
Beginning
July 3
.
Balance
July 10
.
Balance
July 12
.
Balance
July 14
.
Balance
July 16
.
Balance
July 20
.
Balance
July 22
.
Balance
July 24
.
Balance
July 26
.
Balance
July 27
.
Balance
.
In: Accounting
Hitaki Sales Inc. began the month of July with $562,500 of current assets, a current ratio of 2.25:1, and an acid-test ratio of 1.00:1. During the month, it completed the following transactions (the company uses a perpetual inventory system).
(PLEASE SHOW SOME OF YOUR WORK SO IT IS EASIER TO FOLLOW, THANK YOU)
July 3 Purchased $67,500 of merchandise inventory on credit.
10 Sold merchandise inventory that cost $75,000 for $120,000 cash.
12 Collected $40,000 cash on an account receivable.
14 Paid $32,000 cash to settle an account payable.
16 Wrote off a $10,000 bad debt against the Allowance for Doubtful Accounts.
20 Declared a $2 per share cash dividend on its 30,000 shares of outstanding common stock.
22 Paid the dividend declared on July 22.
24 Borrowed $75,000 cash by giving the bank a 90-day, 6% note.
26 Borrowed $75,000 cash by signing a long-term secured note.
27 Used the $80,000 cash proceeds from the notes to buy new machinery.
Prepare a table showing Kiwi Java Time’s (1) current ratio, (2) acid-test ratio, and (3) working capital, after each transaction. Round ratios to two decimals.
Transaction Current Quick Current Current Acid-Test Working
Assets Assets Liabilities Ratio Ratio Capital
Beginning
July 3 ________________________________________ .
Balance
July 10
______________ .
Balance
July 12
.
Balance
July 14 .
Balance
July 16 .
Balance
July 20 .
Balance
July 22 .
Balance
July 24 .
Balance
July 26 .
Balance
July 27 .
Balance .
In: Accounting
Discuss how the OTC markets are becoming more like exchange-traded markets as a result of post-crisis regulations. What role do CCPs play and how are they similar to exchange clearing houses? Discuss futures vs. OTC trades and margin requirements.
In: Finance
In: Finance
A fund manager of IMD Securities Ltd quoted:
‘GC Tech has a very high beta since its stock has traded as high as
$253 and as low as its current $64 during this year.’
Do you agree with the fund manager? Explain.
In: Finance
Imagine that you really love jelly beans and stock pile them after Easter every year. The best variety is Brach’s Jelly Eggs which has seven varieties: Red, Pink, White, Black, Purple, Green, and Yellow. In one bag, you find 32 Red, 27 Pink, 30 White, 12 Black, 25 Purple, 26 Green, and 27 Yellow.
What is the probability that the first jelly bean you draw is pink?
QUESTION 2
Imagine that you really love jelly beans and stock pile them after Easter every year. The best variety is Brach’s Jelly Eggs which has seven varieties: Red, Pink, White, Black, Purple, Green, and Yellow. In one bag, you find 32 Red, 27 Pink, 30 White, 12 Black, 25 Purple, 26 Green, and 27 Yellow.
Assume you eat the pink jelly bean from question 1. What is the chance of randomly selecting a yellow or purple jelly bean next?
QUESTION 3
Imagine that you really love jelly beans and stock pile them after Easter every year. The best variety is Brach’s Jelly Eggs which has seven varieties: Red, Pink, White, Black, Purple, Green, and Yellow. In one bag, you find 32 Red, 27 Pink, 30 White, 12 Black, 25 Purple, 26 Green, and 27 Yellow.
You have now eaten one pink and one purple jelly bean. What is the probability of selecting anything other than a black jelly bean?
QUESTION 4
Imagine that you really love jelly beans and stock pile them after Easter every year. The best variety is Brach’s Jelly Eggs which has seven varieties: Red, Pink, White, Black, Purple, Green, and Yellow. In one bag, you find 32 Red, 27 Pink, 30 White, 12 Black, 25 Purple, 26 Green, and 27 Yellow.
Now you have eaten a pink, purple and green jelly bean. What is the probability that you select a white jelly bean followed by a red jelly bean?
In: Statistics and Probability
Frusciante, Inc. has 285,000 bonds outstanding. The bonds have a par value of $1,000, a coupon rate of 6.9 percent paid semiannually, and 7 years to maturity. The current YTM on the bonds is 6.4 percent. The company also has 9 million shares of stock outstanding, with a market price of $27 per share. What is the company’s market value debt–equity ratio?
In: Accounting
In: Accounting