Review the article: Is your own buying behavior influenced by coupons and sales? Why do you think J.C. Penney’s pricing strategy has not been successful as compared to other “low price” proponents like Walmart? Will Ron Johnson’s four-year plan be successful over the long-term? Why or why not? BUS 620 Week 4 DQ 1 Purchase here http://chosecourses.com/BUS%20620%20/bus-620-week-4-dq-1 Description This paperwork of BUS 620 Week 4 DQ 1 shows the solution to the following point: The Role of Pricing Mohammed, R. (2012).
Arbitrage in the Government Bond Market (Case Analysis) Overview: On January 7, 1991, Samantha Thompson found out that there were major discrepancies in prices of long-term US Treasury bonds, and this anomaly could be used to make an arbitrage profit. Since the market is the largest, most liquid and closely watched fixed-income market in the world, it is uncommon to find an arbitrage opportunity in the government bond market. Ms. Thompson observed that she could create a synthetic bond whose coupon rate, maturity and par value could be exactly the same as the callable bond by combining non-callable bonds and zero coupon bonds. Clearly, this new bond is better than callable bond. If Ms. Thompson’s analysis was right, for investors holding callable bonds, they could make money from these discrepancies.
Derived demand is a term used in economic analysis that describes a physical or intangible thing where a market exists for both related goods and services in question. The derived demand can have a significant impact on the derived good's market price. Also the demand from another good can be an excellent investing strategy. The only example that I can think of is picks and axes during the gold rush, the demand for gold prompted prospectors to search for gold. These prospectors needed picks, axes and other supplies to mine for gold.
One result of the need for new types of financial instruments is securitization. 10) Briefly describe any two of the three main components of the international capital market. One of the main components of the international capital market expands the money supply for borrowers. The international capital market is a conduit for joining borrowers and lenders in different national capital markets. A company that is unable to obtain funds from investors in its own nation can seek financing from investors elsewhere.
2. I utilized an “Acid Test Ratio” which shows us whether the entity could pay all its current liabilities if they became due now or sooner than expected. In 2011, the acid test ratio was 0.64. By 2012, it decreased to 0.43. Even though the acid-test ratio is less than 1 which rates in the lower third quartile in the industry of 1.6, 0.9 to 0.6, it indicates a concern with repaying current liabilities.
What is the indifference point? Ans: 333 units (Q* = (FCMake ( FCBuy) / (VCBuy ( VCMake) = ($2000 - $1000)/($5 - $2) = 333) Section: SCM Across The Organization Level: moderate 4. In the affiliate revenue model, companies receive a referral fee for: a) providing advertising space on their web site b) selling customer information to others c) executing a transaction d) directing business to an “affiliate” e) monthly subscription charges Ans: d Section: Major Issues Affecting Supply Chain Management Level: moderate 5. According to the textbook, the larger cargo ships created the negative result of? a) increased per pound shipping charges b) increased CO2 emissions c) decreased operating costs d) longer port times e) increased in transition times Ans: d Section: Major Issues Affecting Supply Chain Management Level: moderate 6.
De Beers have set the price and monopolized the international diamond market. In terms of Nash equilibrium, De Beers had the dominant strategy where there is no unilateral profitable deviation from any of the players involved. In this case, no players in the same market would take a different action as long as the other dominating player remains the same because other players know that they will be worse off. De Beers enforced their market strategy in various ways as following; First, De Beers established the De Beers Mining Company, and they also purchased all the major South African mines to effectively control the increasing market share of mining diamonds and to manage the quantity of various qualified diamonds. Second, De Beers convinced the independent producers to join their single channel monopoly and to make the shady agreement.
Explain the problem(s) associated with the labor productivity. Quantity $/Unit Deluxe car 4,000 units sold $8,000/car Limited car 6,000 units sold $9,500/car Labor. Deluxe 20,000 hours $12/hour Labor. Limited 30,000 hours $14/hour Solution: Firstly, we use the single-factor productivity for measuring productivity as explained below: The labor productivity (in hours) for Deluxe car: Units sold = 4,000 = 0.2 units per labor hour. Labor hours 20,000 The labor productivity (in hours) for Limited car: Units sold = 6,000 = 0.2 units per labor hour.
Question B How does the treatment of costs differ in ABC systems as opposed to traditional cost systems? Week 4 Discussion Questions Question A What approach should be used to calculate the breakeven point of a company that has many products? Question B How is the contribution margin per unit of limited resources computed? Week 5 Discussion Questions Question A What factors must management consider when deciding whether to continue using an asset, repair, or replace it? Question
| Company A | Company B | Company C | Market Average | Price/Earnings | 23.6 | 24.6 | 22.8 | 23.67 | Price/Book | 7.7 | 12.1 | 4.2 | 8.0 | Price/Sales | 2.9 | 2.8 | 2.9 | 2.87 | Price/Cash Flow | 13 | 16.7 | 14.7 | 14.8 | In the next step we use the market average to compute the value of the firm in 2005. Afterwards we discount it and divide it by the numbers of share to receive the stock price according to each of the four