Costco can purchase a bag of Starbucks coffee for $20.00 less discounts of 20%, 15%, and 7%. It then adds a 40% markup on cost. Expenses are known to be 25% of the regular unit selling price.
a. What is the cost of the coffee?
b. What is the regular unit selling price?
c. How much profit will Costco make on a bag of Starbucks coffee?
d. What markup on selling price percentage does this represent?
e. Repeat questions (a) through (d) if the list price changes from $20.00 to $24.00.
In: Finance
Explain why, if two mutually exclusive projects are being compared, the project that generates most of its cash flows in the beginning of its life might have the higher ranking under the NV criterion if the required rate of return is high, whereas the project that generates most of its cash flows toward the end of its life might be deemed better if the required rate of return is low. Would changes in the firms required rate of return ever cause a change in the IRR ranking of two such projects? Explain.
In: Finance
Which of the following is/are correct regarding interest rates? Choose all the correct answers.
a. Borrowers’ preference for long duration and lenders’
preference for short duration causes the term premium to be
positive.
b. Zero-coupon bonds are less sensitive to interest rate changes
compared to coupon bonds with the same time to maturity.
c. The yield curve is usually flat.
d. Bonds with greater default risk typically trade at lower
yield-to-maturities.
e. An inverted yield curve serves as a negative indicator for the
future state of the economy.
In: Finance
The “Inflation Comes Back…” article discusses the balance between inflationary pressures and other economic tensions.What are some of the factors that were leading to rises in inflation?
the article discusses the balance between rate changes and avoiding too low a level of inflation. If the Fed’s actions cause inflation to rise when inflation is already expanding, this can cause market distortions. What are some issues that can occur when inflation is high concerning economic growth?
https://www.wsj.com/articles/inflation-comes-back-into-the-picture-for-the-fed-11568303877
In: Economics
Consider the following two bonds. One bond with a coupon rate of 6%, semi-annual coupons, and 20 years until maturity. The second bond has 10 years until maturity but is otherwise the same. a. What is the most you should pay for each asset if current yields are 7%? b. Do the bonds sell at a premium or a discount? c. Suppose current yields increase to 8%, what are the new bond prices? d. Which bond is more sensitive to yield changes? How can you tell?
In: Finance
Total | Social Capital | Income of the year | Income of past years | Legal Reserve | |
2015 | 272,000 | 200,000 | 30,000 | 40,000 | 2,000 |
In 2016, the company's management makes the following
movements:
to. 5% of the profit is transferred to the legal reserve
b. 60% of the previous year's profit remains in the company
c. The rest of the profit of the previous year is paid to the
shareholders via dividends
d. The shareholders decide to increase the capital by 50,000
and. The company generates profits of 45,000 pesos in 2016
Presents the Statement of Changes in stockholders' equity.
In: Accounting
Pension reporting for state and local governments that have established a qualifying irrevocable trust require that: Select one: A. Changes in the net pension liability is reported as pension expense in an employer's government-wide statement of activities. B. Governments have an option of reporting or not reporting the net pension liability in an employer's government-wide statement of net position. C. The actuarial accrued liability is reported in an employer's government-wide statement of net position. D. A net pension liability is reported in an employer's government-wide financial statements.
In: Accounting
For this project, you will place yourself in the role of HR manager or executive of a medium-large company. Your responsibility is to communicate important information throughout your organization in response to ONE of the following scenarios:
In: Operations Management
Within this unit, we discussed how businesses may need to adapt to changing times in order to stay competitive. Their initial practices may have worked well previously, but may not serve them well in the long term. The newspaper industry is one that may face extinction. Explain why they may need to rethink their business strategy, and provide some advice on possible strategic management changes. Be specific to include goals/objects, strengths, and weaknesses. Your response should be at least 200 words in length.
In: Economics
In a negatively supercoiled circular plasmid (covalently closed), the transition of a small region of B-DNA to Z-DNA can be induced. If this region involves a 12 base pair alternating d(CG) sequence in the closed plasmid, determine changes to W, T, and L after the induced B-to-Z transition. (Remember: ~10 base pairs per right-handed turn for B-DNA and -12 base pairs per left-handed turn for Z-DNA, i.e. Z-DNA twists in the opposite direction).
In: Biology