
Introduction to Business
OER 2018 Edition
ISBN: 9781947172548
Author: OpenStax
Publisher: OpenStax College
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Textbook Question
Chapter 12.2, Problem 2CC
Describe merchant wholesalers.
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Gross profit would be_.
An investor buys 100 shares of a $40 stock that pays an annual cash dividend of $2 a share (a 5 percent dividend yield) and signs up for the DRIP.
a. If neither the dividend nor the price changes, how many shares will the investor have at the end of 10 years? How much will the position in the stock be worth?
Answer:
5.000 shares purchased in year 1
5.250 shares purchased in year 2
6.078 shares purchased in year 5
62.889 total shares purchased
b. If the price of the stock rises by 6 percent annually but the dividend remains at $2 a share, how many shares are purchased each year for the next 10 years? How much is the total position worth at the end of 10 years?
Answer:
4.717 shares purchased in year 1
4.592 shares in year 3
3.898 shares in year 10
Value of position: $10,280
c. If the price of the stock rises by 6 percent annually but the dividend rises by only 3 percent annually, how many shares are purchased each year for the next 10 years? How much is the total position worth at the…
Dr Z. Mthembu is the owner of Mr Granite, a business in the Western Cape. After more than 28 years of operation, the business is thinking about taking on a new project that would provide a profitable new clientele. With only R1.5 million in resources, the company is now working on two competing projects. The starting costs for Project X and Project Y are R625,000 and R600000, respectively. These projected are estimated for the next 7 years timeframe. According to SARS, the tax rate is 28%, and a discount rate of 11.25% is applied.Projects X Project YProject X Project Y129000 145000154000 145000312000 145000168000 14500098250 14500088750 14500016050 145000
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Chapter 12 Solutions
Introduction to Business
Ch. 12.1 - List and define the marketing intermediaries that...Ch. 12.1 - Provide an example of a strategic channel allianceCh. 12.1 - How do channels reduce the number of transactions?Ch. 12.2 - Define wholesaling, and describe what wholesalers...Ch. 12.2 - Describe merchant wholesalers.Ch. 12.2 - Explain the different between agents and brokers.Ch. 12.3 - Describe at least five types of in-store retailing...Ch. 12.3 - What factors most influence a retail store's...Ch. 12.4 - What is the goal of supply-chain management?Ch. 12.4 - What does it mean for a supply chain to be...
Ch. 12.4 - What does distribution (place) differ for services...Ch. 12.5 - what is the objective of a promotional campaign?Ch. 12.5 - What is the promotional mix?Ch. 12.5 - What are the feature of an integrated marketing...Ch. 12.6 - How is technology impacting the way advertisers...Ch. 12.6 - What are the two main factors that should be...Ch. 12.7 - What are the advantages of personal selling?Ch. 12.7 - Explain the selling process.Ch. 12.8 - How does sales promotion differ from advertising?Ch. 12.8 - Describe several types of sales promotion.Ch. 12.9 - How does public relations differ from advertising?Ch. 12.9 - Describe several types of publicity.Ch. 12.10 - How are companies embracing social media as a way...Ch. 12.10 - What has been the effect of social media on...Ch. 12.11 - How can brick-and-mortar stores use technology to...Ch. 12.11 - What factors contribute to the internet's soaring...Ch. 12 - After working really hard to distinguish yourself,...Ch. 12 - Name some of the challenges marketers encounter...Ch. 12 - You work for an ad agency that has a Super Bowl...Ch. 12 - What types of companies could benefit from placing...
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