Describe at least two ways that option pricing is used in corporate finance (ie, in the firm). Explain how cutting costs impact the bottom-line and how that also impacts stock option value. Identify and discuss the ethical dilemma the CEO would face in using cost-cutting as...
1. Explain cost plus pricing. 2. What are its advantages and disadvantages? Describe how the capital market line works? Explain how companies use transfer pricing to circumvent repatriation restrictions. Explain how a market index is price weighted. In such a case, would you expect a $100 stoc...
1. Explain cost plus pricing. 2. What are its advantages and disadvantages? Define or describe the following: Capital Market Line (CML). How is the opportunity cost concept used in the capital budgeting process? Define marginal weighted average cost of capital. ...
Rate of Return Pricing; Break-even Pricing; Minimum Pricing; Standard Cost Plus Salient Points on Variable/Marginal Cost Plus pricing: Selling price is determined by adding a mark up or margin on the total variable costs (marginalcost); Based on the assumption that any price above ...
aThe pricing on the rails does not align. The 7’ rail assembly you quoted with the strap included is $ .60 more expensive than the current Pro-rail assembly. Please explain cost difference. 定价在路轨不排列。 7’您引述与包括的皮带的路轨汇编比当前赞成路轨汇编是$ .60昂贵。 请解释成本偏差...
2.The Digital Dining Room(we’ve got just 10 seats available and the annual enrollment cost goes up July 1st.) 3.Testimonials Done With/For You(get exactly the right mix of emotional benefits and hard proof you need to back up your promises — I’m beta-testing this service which means...
This result suggests that, although firms differ in their perceptions of the cost versus benefit trade-offs between dividend payment and online conference calls, the net effect on tunneling following the regulation is similar, regardless of firms’ compliance choices. Overall, the results in Table 6...
Solution: Pricing problem NuPack is responsible for taking existing products and repackaging them for sale at electronic stores like Future Shop and Best Buy. Companies will phone up NuPack, explain the process and NuPack needs to quickly give them an estimate of how much it will cost. Different...
The following equation represents the suggested method of finding EVA. $$ \mathrm{EVA}=\mathrm{NOPAT}-\mathrm{WACC}\ast \mathrm{TCE} $$ (1) Where, NOPAT is the net operating profit after interest, WACC is the weighted average cost of capital, and TCE is the total capital employed. ...
The appellant1 was a privatelimited company, engaged in providing investment advisory services on a cost- plus mark-up basis to its associated enterprise. The appellant used Transactional Net Margin Method (TNMM) as the most appropriate method for determining the arm's length price (ALP) of the...