In which of the following does a customer respond to the functional quality of a service?
A) Sara's preferred hair stylist is some miles away, but Sara goes to him because his styles suit her looks.
B) Kathy tries out a new restaurant every week because she likes to experience the variety.
C) Bill has gone to the same chiropractor for the past fifteen years because he is friendly and takes the time to listen to Bill.
D) Ray's mechanic charges high prices for service, but his work is good and worth the price.
E) Alex has no interest in theater, but goes often because her best friend loves plays.
C
You might also like to view...
The use of ________ analysis in setting workplace health and safety standards commits us to treating worker health and safety as just another commodity, another individual preference, to be traded off against competing commodities.
Fill in the blank(s) with the appropriate word(s).
West Company declared a $0.50 per share cash dividend. The company has 190,000 shares issued, and 10,000 shares in treasury stock. The journal entry to record the dividend declaration is:
A. Debit Retained Earnings $95,000; credit Common Dividends Payable $95,000. B. Debit Common Dividends Payable $90,000; credit Cash $90,000. C. Debit Common Dividends Payable $95,000; credit Cash $95,000. D. Debit Retained Earnings $90,000; credit Common Dividends Payable $90,000. E. Debit Retained Earnings $5,000; credit Common Dividends Payable $5,000.
In the context of the competitive environment of business, unlike leading-edge firms, bleeding-edge firmsoffer products just as the market becomes ready to embrace them.
Answer the following statement true (T) or false (F)
Your boss, Sally Maloney, treasurer of Fred Clark Enterprises (FCE), asked you to help her estimate the intrinsic value of the company's stock. FCE just paid a dividend of $1.00, and the stock now sells for $17.50 per share. Sally asked a number of security analysts what they believe FCE's future dividends will be, based on their analysis of the company. The consensus is that the dividend will be increased by 10% during Years 1 to 3, and it will be increased at a rate of 5% per year in Year 4 and thereafter. Sally asked you to use that information to estimate the required rate of return on the stock, rs, and she provided you with the following template for use in the analysis. Estimated rs =10.00% (must be changed to force Calculated Price to equal the Actual Market Price) Actual Market
Price, P0:$17.50 ? Rapid growthNormal growthYear 0 1 2 3 4 5 Dividend growth rate (insert correct values) ? 10% 10% 10% 5% 5%Calculated dividends (D0 has been paid) ? $1.00 ? ? ? ? ?HV3 = D4/(rs - g4). Find using Estimated rs.? ? ? ? ? ? Total CFs ? ? ? ? PVs of CFs when discounted at Estimated rs ? ? ? ? Calculated Price = P0 = Sum of PVs = ? ? $0.00 ? ? A positive number will be here when dividends are estimated.The Calculated Price will equal the Actual Market Price once the correct rs has been found. Sally told you that the growth rates in the template were just put in as a trial, and that you must replace them with the analysts' forecasted rates to get the correct forecasted dividends and then the estimated HV. She also notes that the estimated value for rs, at the top of the template, is also just a guess, and you must replace it with a value that will cause the Calculated Price shown at the bottom to equal the Actual Market Price. She suggests that, after you have put in the correct dividends, you can manually calculate the price, using a series of guesses as to the Estimated rs. The value of rs that causes the calculated price to equal the actual price is the correct one. She notes, though, that this trial-and-error process is quite tedious, and that the correct rs could be found much faster with a simple Excel model, especially if you use Goal Seek. What is the value of rs? A. 12.44% B. 9.83% C. 13.97% D. 10.54% E. 11.84%