A lumber firm sells wood products to both the construction industry and the retail industry. The company has the same sales representatives for both industries and often offers discounts for buying in bulk. The lumber firm sells different types of wood for each industry based on its unique characteristics. For instance, wood used for large construction projects must have a higher grade and quality than wood used for home improvement projects. Which type of segmentation is the lumber firm most likely to use?
A. Type of organization
B. Geographic
C. Benefit
D. Psychographic
E. Customer size
Answer: A
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The net income for the year ended was $300,000 . Common stockholders' equity at the beginning of the year was $1,400,000 and $1,600,000 at the end of the year. The return on common stockholders' equity would be
a. 18.75%. b. 20.00%. c. 21.43%. d. 87.50%.
Please explain the difference between the “horn” and “halo” effects.
What will be an ideal response?
________ make their money by collecting data and designing research products that fit the information needs of more than one organization
A) Data processing services B) Syndicated services C) Field services D) Qualitative research services E) Pooling services
NVIDIA Corp. financial statements are presented below. Analysts forecast that its 2018 sales will be $8,260. The expected 2018 tax rate will be 17.35%. Assume the firm pays 5% interest on short-term debt and 7% on long term debt.
a) Use your judgement to forecast the items on the income statement and balance sheet with the percent of sales method. What is the discretionary financing needed in 2018? Is this a surplus or deficit?
Assume that the dividends per share will be $0.54 and the number of shares will be the same as in 2017.
b) Assume that DFN will be absorbed by long-term debt and that the interest rate is 2.5% of the sum of LTD and short-term debt. Set up an iterative worksheet to eliminate it.
c) Create a scatter chart of research and development vs. sales and add a linear trend line. Does there appear to be a consistent trend in this relationship?
d) Use the regression tool to verify your results from part c. Is the trend statistically significant? Use at least three methods to show why or why not.
e) Turn off iteration, and use the Scenario Manager to set up three scenarios:
1. Best Case — Sales are 15% higher than expected.
2. Base Case — Sales are exactly as expected.
3. Worst Case — Sales are 15% less than expected.
What is the DFN under each scenario?