QUESTION Why might a marketing researcher prefer to use secondary data rather than primary data in a study? Why might the reverse be true? Researchers have the advantage of easy and convenient accessibility (due to internet) to secondary research data hence they prefer it over primary research. There is low cost to acquire secondary research […]
QUESTION Statistics are numerical statements of facts but all facts numerically stated are not statistics. Explain Statistics refers to systematic and organised collection of numerical facts. It tells information in terms of numerical facts or numbers such as employment rate, literacy rate or population data. An important point to note is that mere numbers or […]
QUESTION Define risk management and explain its importance? Risk management is the identification,assessment, and prioritization of risks followed by coordinated andeconomical application of resources to minimize, monitor, andcontrol the probability and/or impact of unfortunate events. Riskscan come from 1.uncertainty in financial markets2.project failures3.legal liabilities4.credit risk5.accidents6.natural causes and disasters as well as deliberate attacksfrom an adversary.Several […]
QUESTION You would like to invest $18,000 and have a portfolio expected return of 12.3 percent. You are considering two securities, A and B. Stock A has an expected return of 15.6 percent and B has an expected return of 10.3 percent. How much should you invest in stock A if you invest the balance […]
QUESTION Blue Company planned to sell 35,000 units. Actualsales were 30,000 units. Based on this information, Blue Companywas _____.A.efficientB.inefficientC.ineffectiveD.effective At the break-even point of 2,000 units, variable costsare $55,000, and fixed costs are $32,000. How much is the selli Blue Company planned to sell 35,000 units. Actualsales were 30,000 units. Based on this information, Blue […]
QUESTION Mulligan, Inc. is currently considering an eight-year project that has an initial outlay or cost of $140,000. The cash inflows from its project for years 1 through 8 are the same at $35,000. Mulligan has a discount rate of 12%. Because there is a shortage of funds to finance all good projects, Mulligan wants […]
QUESTION Baden Company manufactures a product with a unitvariable cost of $50 and a unit sales price of $88. Fixedmanufacturing costs were $240,000 when 10,000 units were producedand sold. The company has a one-time opportunity to sell anadditional 1,000 units at $70 each in a foreign market which woul Present scene: Contribution pu = Sale […]
QUESTION the finnce mnger spends most of his time mking mngeril finnce decisions s opposed to routine functions.DISCUSS The finance manager spends most of the time on the making managerial finance decisions such as like budgeting, working capital analysis, cost analysis and risks and uncertainty analysis, which are just opposite to the routine functions of […]
QUESTION Carter is estimating its WACC. The company has collected the following information. 1. Its capital structure consists of 40 percent debt and 60 percent common equity. 2. The company has 20-year bonds outstanding with a 9 percent annual coupon that are trading at par. 3. The companys tax rate is 40 Using formulas in […]
QUESTION Enron is one the enduring legacies of corporate fraud in thelast 10 years. It erupted due to the incompentencies ofCalifornia in failing to truly deregulate electricitygeneration.What techniques did the wizards at Enron use to inflate earningsand their stock price? How did they manipulate cash Jeffrey Skilling was hired as the president, he developed a […]
