calculating clv is most helpful for which of the following? calculating clv is most helpful for which of the following? opening a new retail location assessing the viability of any pricing strategy calculating research investment for a new product estimating demand for a product

Answers

Answer 1

Answer:

Calculating CLV is most helpful for Assessing the viability of any pricing strategy.

The correct option is B

What is customer lifetime value?

The total amount of money a client is anticipated to spend with your company or on your products over the course of an average business relationship is known as customer lifetime value.

If you can reach a CLV that is between three and five times your cost per new customer, it is a good range. Therefore, you should strive for a CLV of at least $450 if you are investing an average of $150 in acquiring a new customer.

The formula for customer lifetime value is: CLV = Average Transaction Size x Number of Transactions x Retention Period.

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I understand that the question you are looking for is:

Calculating CLV is most helpful for which of the following?

(A) Opening a new retail location

(B) Assessing the viability of any pricing strategy

(D) Calculating research investment for a new product

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An underpinning of all commerce is effective communications, knowledge of where goods and services exit and where they are needed and the ability to communicate instantaneously across vast distances. Facilitation this movement into the future one can observe which shifts in examining world population and telecommunications?

Answers

Explanation:

Analyzing the historical context, it is possible to see how the new communication technologies were essential for the development of commerce. We currently live in the digital age, where almost every individual has access to a cell phone with internet and can communicate within seconds with any part of the world.

This technological revolution also had a great economic impact, generating new business models.

Companies have to adapt to this reality and insert themselves in the new market based on the internet, in creating relationships with consumers, in the practice of positive social and environmental attitudes, etc. Some companies needed to reinvent themselves to adapt to the new economic context, or they would lose strength in the market and would cease to exist.

The fact is that the technological revolution has impacted commercial relations around the world, today the consumer seeks the solution to his problems and desires, not being restricted to local consumption, which causes a new redesign of commerce and manages impacts on the economy of the world.

Assume that you are the portfolio manager of the SF Fund, a $3 million hedge fund that contains the following stocks. The required rate of return on the market is 11.00% and the risk-free rate is 2.00%. What rate of return should investors expect (and require) on this fund?Stock Amount Beta
A 1075000 1.2
B 675000 0.5
C 750000 1.4
D 500000 0.75

Answers

Answer:

Explanation:

AVERAGE BETA = (INVESTMENT * BETA) / TOTAL INVESMENT

3052500 / 3000000

1.0175

Required Return = Risk free Return + (Market Return - Risk free return)* Beta

Required Return = 5% + (10% - 5%)*1.0175

Required Return = 10.08%

Milo receives a commission of on all sales. If his commission on a sale was , find the cost of the item he sold.

Answers

Answer: $1,256

Explanation:

Milo makes 6% on the sales that he makes.

The $75.36 that he made from this sale is therefore 6% of the cost of the item sold.

Assuming the item was x, the cost is;

6% * x = 75.36

x = 75.36/6%

x = $1,256

The cost of the item that Milo sold can be found by dividing the known commission by the commission rate. In this case, the item cost $1000.

The question of finding the cost of an item based on a known commission is a question of working backwards from the commission to the total sale amount. This can be understood as a simple mathematical problem related to percentages.

If Milo's commission was $100, and the commission rate is 10% (as mentioned in the question), then we can formulate this as x * 0.10 = $100, wherein x represents the total sale amount. To find x, we can rearrange the formula to x = $100 / 0.10, which equals to $1000. Hence, the cost of the item that Milo sold was $1000.

To find the cost of the item Milo sold, set up an equation using the commission rate and the commission earned.

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Sarah recently bought a bicycle. After a few days of cycling, she realized that she needed a basket on the bicycle to keep her bag and other items while cycling. Sarah's need of a basket is a _____.

Answers

Answer:

Functional need

Explanation:

Functional need -

It refers to the needs of the human being , which are important for the survival , is referred to as functional need .

These are basic requirements which are important for the day to day activities of the people .

Hence , from the scenario of the question,

Sarah bought a cycle , but as soon as she realized that basket is important for keeping her bag and other item .

Hence, the need of basket is the functional need .

The Bradford Company issued 10% bonds, dated January 1, with a face amount of $80 million on January 1, 2018 to Saxton-Bose Corporation. The bonds mature on December 31, 2027 (10 years). For bonds of similar risk and maturity, the market yield is 12%. Interest is paid semiannually on June 30 and December 31. Determine the price of the bonds at Janary 1 2018.

Answers

Answer:

The price of the bonds at Janary 1 2018 is $70,824,063

Explanation:

Data:

Face Amount = F = $80,000,000

Time = n = 10 years * 2 (semiannually) = 20 semesters

Yield = r = 12% / 2 (semiannually) = 6% = 0.06

Payment = C = $80,000,000 * 10% / 2 = $4,000,000

Computation:

Bond Price = (C * (1 - (1 + r)^-n) / r) + (F / (1 + r)^n)

Bond Price = ($4,000,000 * (1 - (1 + 0.06)^-20) / 0.06) + ($80,000,000 / (1 + 0.06)^20)

Bond Price = ($4,000,000 * 11.46992) + $24,944,378.15089

Bond Price = $45,879,684.87426 + $24,944,378.15089

Bond Price = $70,824,063

Hope this helps!

9.5 Capital Healthplans Inc. is evaluating two different methods for providing home health services to its members. Both methods involve contracting out for services, and the health outcomes and revenues are not affected by the method chosen. Therefore, the net cash flows for the decision are all outflows. Here are the projected flows:Year Method A Method B0 (300,000) (120,000)1 (66,000) (96,000)2 (66,000) (96,000)3 (66,000) (96,000)4 (66,000) (96,000)5 (66,000) (96,000)a. What is each alternative’s IRR? b. If the opportunity cost of capital for both methods is 9 percent, which method should be chosen? Why?

Answers

Answer:

present worth A: 513,821.51

present worth B: 431,013.1

We should choose option B as the present worth is lower.

the IRR cannot be calculated when all teh cashflow are negative as it the rate which makes the present value equal to zero. that means it will discount either the negative or postive subsequent cashflow to match an initial of the opposite sign.

Explanation:

For the intenal rate of return we must look for which rate makes the cost equal to zero.

For the opportunity cost, we solve for the present value of eahc discounted at the given rate of 9%

Method A

$(Maturity)/((1 + rate)^(time) ) = PV$