A local dental practice decides to run a Groupon campaign. The campaign offered $340 worth of dental services (such as teeth whitening) for $155. For the total campaign, 250 coupons were sold. We estimate that 85% of the coupons will be redeemed, that 35% of the coupons will be redeemed by existing customers and that, on average, Groupon customers purchased 1.5 coupons. Let's assume that 24% of new customers come back after the Groupon coupon visit. The dental practice estimates its cost of goods sold to be 50%. Finally, the bill for the average Groupon customer was $390. The dental practice negotiated a 50/50 split with Groupon. Calculate the expenses of the Groupon campaign.
Q: population of a country was approximater million. Use the exponential growth model A = Aet, in which…
A: The growth in the population do not follow any patterns but for simplicity it is assumed that growth…
Q: 11- A profitable company making earthmoving equipment is considering an investment of $150,000 on…
A: Present worth refers to the current value of an asset present at some future date. It defines the…
Q: ou have just completed a $25.000 feasibility study for a new coffee shop in some retail space you…
A: Data given: Feasibility study=$25000 Cost of space bought two years ago=$105000 Amount you would net…
Q: Should Tangshan Mining company accept a new project if its maximum payback is 3.5 years and its…
A: The Payback period method is the capital budgeting method for finding out the period within which…
Q: 1 2 3 4 5 6 7 8 9 10 1. Find the Yield to Maturity (YTM) for the following government bonds Price…
A: As per Bartleby honor code, when multiple questions are asked, the expert is required only to solve…
Q: If your investment is growing at 20%, how would you calculate how long it would take to double in…
A: We have to set up the final step for the calculation of time taken for an investment to double up.
Q: Company's 5-year bonds are selling at P820. The bonds face amount is P1,000 and pays an annual…
A: Bonds are long term source of finance for the company and very cheap source of finance because after…
Q: d value : $8,400,000 cash flow :$444,000 Using Information Above what would be the loan amount…
A: Loan to value ratio is very important in the mortgage laons and that decides that how much would be…
Q: 3. What is the semi-annual coupon rate on the following government bonds? 3 YTM Semi-ann Face valu…
A: Here, To Find: Semi-annual coupon rate =?
Q: Based on the following YTM for the various maturities, what price are these government bonds trading…
A: YTM 2.64% YTM 2.17% YTM 3% Semi-Annual Coupon 2.38% Semi-Annual Coupon 2% Semi-Annual Coupon 5.50%…
Q: An investment costing $10,000 today promises to repay investors $6,000 per annum for the next two…
A: If NPV of project is positive, Project must be accepted. If NPV of project is negative, Project must…
Q: IRR - Discuss why some investment analysts prefer NPV methods to rank investments while others…
A: NPV and IRR are two main capital budgeting methods that are used quite extensively in the selection…
Q: An investor shorts 1,000 shares of XYZ.com, a security eligible for reduced margin, at $48. The…
A: Margin is the amount of equity in an investor's brokerage account. To "margin" or "buy on margin"…
Q: You are purchasing a home for $150,000 at an 8% APR. Your loan period is 360 months. If your…
A: Given Cost of home is $150,000 APR is 8%Loan period is 360 Payment is $1,100.65
Q: A bond that pays interest semiannual has a price of 981.45 and semiannual coupon payment of 28.50.…
A: Semiannual coupon amount = 28.50 Current price = 981.45 Current yield = ?
Q: Explain how capital adequacy requirements may affect a commercial bank’s dividend payout and growth…
A: Capital adequacy requirement refers to the amount of capital a bank must have as per the requirement…
Q: Compute the following ratios for 2022 and 2021. Inventory on December 31, 2020, was $330. Assets on…
A: As per our guidelines, we are supposed to answer only 3 sub-parts (if there are multiple sub-parts…
Q: Esfandairi Enterprises is considering a new three-year expansion project that requires an initial…
A: In a typical capital budgeting decision, we have a project whose quantum and timing of cash flows…
Q: Suppose that BBB pays corporate taxes of 35% and that shareholders expects the change in debt to be…
A: An unlevered firm is one which has no debt in its capital structure. A levered firm is one which has…
Q: Francine can choose to invest in the following three stocks with the given characteristics: Stock A:…
A: Solution: Beta is the sensitivity of the return of stock against the market portfolio. It measures…
Q: June 4 June 11 June 18 June 25 A. $2.30 C. $2.26 Units Received 70 30 60 40 Unit Cost You sell 100…
A: By using the last-in and first-out concept, the quantity or balance of the stock at the end of the…
Q: Lindsay is 25 years old and has a new job in web development. She wants to make sure that she is…
A: Given Yearly payment is $12000 Rate is 7%
Q: a Ltd and Omega Ltd are identical in all aspects except their capital structures. Alpha Ltd is 100%…
A: Debt is very important sources of finance for the companies and it has very much lower cost and it…
Q: Afin-Super is the largest superannuation and pension fund in Macquarieland. To promote pension and…
A: Macaulay duration-It can be defined as the weighted average term to maturity of the cash flows from…
Q: You purchase a vehicle for $25,000 at an 8% APR. Your loan term is 72 months. After one year of…
A: Compute the monthly interest rate, using the equation as shown below: Monthly rate=Annual rate12…
Q: 4 eBook Print References Drill Problem 10-9 (Static) [LU 10-1 (2)] Complete the following, using…
A: Solution: An amount borrowed has to be paid along with interest. As per exact method, Interest…
Q: ophia is more risk-averse than George. We should expect that a)for the same risk, George requires a…
A: Risk averse want always to reduce risk and they run way from the risk and they prefer the saftey of…
Q: Find the amount that should be invested now to accumulate the following amount, if the money is…
A: Future Value (FV) $ 13,000.00 Interest Rate 6.30% Time Period 5 Frequency…
Q: e firm can sell 8% preferred stock at its R80 per share par value. Assume that the par value…
A: Preferred stocks are hybrid type of security and is mix of debt and equity and like bond they have…
Q: What is the IRR for the following project if its initial after-tax cost is R5 000 000 and it is…
A: IRR is the rate of return which the project generates over its useful life.
Q: Kathy Hansen has a revolving credit account. The finance charge is calculated on the previous…
A: A revolving credit account is the kind of account that gives you access to a set limit of money i.e.…
Q: 1.MYG Corporation just issued some new preferred stock. The issue will pay an annual dividend of…
A: Annual dividend (d) = $2.50 Required return (r) = 0.05 Period till year 3 (t) = 3 years Value will…
Q: 7. John and Yuki want to buy a three-bedroom semi-detached house that currently sells for $725900.…
A: Given: Cost of house = $725,900 Property taxes = $3,500 Down payment rate = 12%
Q: or the data set Download data set, perform a 3 month moving average to determine the forecast for…
A: Moving Average Formula= C1+C2+C3+C4+.....CnN C1, C2, C3, C4, ....Cn stands for closing prices,…
Q: Quick assets is determined by
A: Solution: Quick assets are the most liquid assets of a firm which can be converted to cash very…
Q: agreed to pay 28% down. What
A: Given Purchase Price of the House =$ 151362 and down payment =28%
Q: u are analyzing the cost of debt for a firm. You know that the firm’s 14-year maturity, 6.60 percent…
A: Yield to maturity is the rate of return realized when bond is held to maturity and all payments are…
Q: (Related to Checkpoint 11.4) (IRR calculation) What is the internal rate of return for the following…
A: The IRR is the actual rate of return expected from the investment or project. The IRR calculation is…
Q: What is the present value of monthly payments of $400 for 5 years followed by monthly payments of…
A: First Monthly Payment = $400 Time Period = 5 years Second Monthly Payment = $800 Time Period = 10…
Q: Suppose a man took out a 30-year loan with an annual rate of 6% to put an addition on his house. His…
A: Data given: Cost of computer=$1200 n=30 year Rate=6% p.a.
Q: hand
A: a) Depreciation per year= (Book Value of the Asset-Salvage value)/no of years= (76000-0)/5= $15200…
Q: The risk-free rate of return is 4.4 percent and the market risk premium is 14 percent. What is the…
A: Solution:- Capital Asset Pricing Model (CAPM) is an equity model which calculates the required rate…
Q: why is the variance added to the table
A: The volatility of the returns provided by a stock, portfolio or any other assets is measured through…
Q: Q 2 To borrow $750, you are offered an add on interest loan at 9.1 percent with 12 monthly…
A: We need to use add on method, in which total interest paid over tenure of loan is calculated using…
Q: What happens to the coupon rate of a $1,000 face value bond that pays $70 annually in interest if…
A: The coupon rate is a fixed-interest rate that attempts to estimate the coupon payment associated…
Q: John made the following investments in Stock A. Calculate his money-weighted return earned over the…
A: As per the given information: 12345Balance from previous year050100012701500New investment by…
Q: ush Gardens Co. bor own payment and fi ompany makes payr
A: Given the prevailing interest rate = 4.08% pa = 4.08/12= 0.34% The loan amount of 46280 will be…
Q: V1 Your firm is considering a project that requires a $500,000 investment in fixed assets. These…
A: When the project appraisal criteria is NPV, if NPV is positive, the project should be accepted while…
Q: What will be your monthly car payment if you are purchasing a car for $25,000 and you have $2,000…
A: In the mortgage amortization concept, the monthly payments are calculated by taking the monthly…
Q: To borrow $1,200, you are offered an add-on interest loan at 9 percent. Two loan payments are to be…
A: Borrowed Amount = $1,200 Interest Rate = 9% Time Period = 1 Years
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
- A local dental practice decides to run a Groupon campaign. The campaign offered $340 worth of dental services (such as teeth whitening) for $135. For the total campaign, 255 coupons were sold. We estimate that 85% of the coupons will be redeemed, that 35% of the coupons will be redeemed by existing customers and that, on average, Groupon customers purchased 1.5 coupons. Let's assume that 29% of new customers come back after the Groupon coupon visit. The dental practice estimates its cost of goods sold to be 45%. Finally, the bill for the average Groupon customer was $380. The dental practice negotiated a 50/50 split with Groupon. Calculate the number of new customers. Answer: x (27)A local dental practice decides to run a Groupon campaign. The campaign offered $350 worth of dental services (such as teeth whitening) for $145. For the total campaign, 230 coupons were sold. We estimate that 85% of the coupons will be redeemed, that 35% of the coupons will be redeemed by existing customers and that, on average, Groupon customers purchased 1.5 coupons. Let's assume that 25% of new customers come back after the Groupon coupon visit. The dental practice estimates its cost of goods sold to be 60%. Finally, the bill for the average Groupon customer was $380. The dental practice negotiated a 50/50 split with Groupon. Calculate the Groupon campaign profit/loss (+/-). Your Answer: AnswerA local dental practice decides to run a Groupon campaign. The campaign offered $340 worth of dental services (such as teeth whitening) for $145. For the total campaign, 250 coupons were sold. We estimate that 85% of the coupons will be redeemed, that 35% of the coupons will be redeemed by existing customers and that, on average, Groupon customers purchased 1.5 coupons. Let’s assume that 23% of new customers come back after the Groupon coupon visit. The dental practice estimates its cost of goods sold to be 45%. Finally, the bill for the average Groupon customer was $395. The dental practice negotiated a 50/50 split with Groupon. Calculate the Groupon campaign profit/loss (+/-). Please do fast ASAP fast
- A local dental practice decides to run a Groupon campaign. The campaign offered $370 worth of dental services (such as teeth whitening) for $150. For the total campaign, 240 coupons were sold. We estimate that 85% of the coupons will be redeemed, that 35% of the coupons will be redeemed by existing customers and that, on average, Groupon customers purchased 1.5 coupons. Let's assume that 23% of new customers come back after the Groupon coupon visit. The dental practice estimates its cost of goods sold to be 45%. Finally, the bill for the average Groupon customer was $395. The dental practice negotiated a 50/50 split with Groupon. Calculate the expenses of the Groupon campaign. Answer: x (36,261)Please do not provide answer in image formate thank you. A local dental practice decides to run a Groupon campaign. The campaign offered $345 worth of dental services (such as teeth whitening) for $145. For the total campaign, 225 coupons were sold. We estimate that 85% of the coupons will be redeemed, that 35% of the coupons will be redeemed by existing customers and that, on average, Groupon customers purchased 1.5 coupons. Let’s assume that 30% of new customers come back after the Groupon coupon visit. The dental practice estimates its cost of goods sold to be 60%. Finally, the bill for the average Groupon customer was $380. The dental practice negotiated a 50/50 split with Groupon. Calculate the breakeven revenue for a new Groupon customer. Answer: 334.60 Incorrect Response (2,071)Rose is in the beauty industry. Rose offers a promotion that if customers buy X cosmetics for $30,000, they will get 10 free massages. Know that the listed price of Rose per massage is $500 and the normal selling price of Rose cosmetics without the promotion is $26,000. According to experience, the manager estimates that there is a 90% chance that customers will use massage vouchers. Revenue of cosmetics will be: a. $25.574 b. $25.000 c. $26.000 d. $4.426 Please do not provide handwritten solution
- A garage band wants to hold a concert. The expected crowd is 2,100. The average expenditure on concessions is $35. Tickets sell for $30 each, and the band's profit is 85% of the gate and concession sales minus a fixed cost of $20,000. Develop a mathematical model and implement it on a spreadsheet to find the band's expected profit.Suppose that a sales force has found 20 qualified buyers and has begun the salesprocess. The sales manager estimates that 10% eventually proceeds to make a purchase.Assume that a professional company offers three services, priced at $2,000, $7,000 and$20,000, respectively. Based on past results or the sales manager’s estimates, you projectthat 60% of first-time buyers will choose the cheapest option, 30% will choose the middleoption and 10% will choose the most expensive option. b. How many qualified buyers must be found in order for the company to generate $80,000 in sales in a given period? Your final answer must be rounded to the nearest wholenumber.MARYJANE, IN., a grocery business, operates a customer loyalty program. MARYJANE grants its program members points when they spend a specified amount of purchases. The points have no expiry date, and they can use the points for further purchases. During 2021, the customers earned 80,000 points, but management expects that 75% of these points will be redeemed. The stand-alone selling price of each loyalty point is estimated at Php 20. The sales during 2021 amounted to Php 6,800,000 on stand-alone selling price. On December 31, 2021, 28,800 points have been redeemed. In 2022, the management revised its expectations and now expects 85% of the points to be redeemed. In 2022, the 12,000 points were redeemed. a. 1,367,481 b. 1,200,000 c. 1,020,000 d. 1,295,238 What amount of the transaction price should be allocated to the groceries?
- To generate leads for new business, Gustin Investment Services offers free financial planning seminars at major hotels in Southwest Florida. Gustin conducts seminars for groups of 25 individuals. Each seminar costs Gustin $3100, and the average first-year commission for each new account opened is $4600. Gustin estimates that for each individual attending the seminar, there is a 0.01 probability that he/she will open a new account. a. Determine the equation for computing Gustin's profit per seminar, given values of the relevant parameters. Round your answers to the nearest dollar. Profit (New Accounts Opened x $ 4600 -$ 3100FB Seller is a high street retailer and has launched a promotional campaign with the following elements: discount coupons are provided to any customers that purchase goods with a total value of over P6,000. The discount coupons entitle the customer to an additional 50% till discount on selected items during the 90 days immediately following the campaign; FB Seller has issued 80 of the 50% coupons to high-spending consumers and took from them P100,000 at the till during the campaign; and based on historical trends, management expects that: 75% of the end-consumers receiving 50% discount coupons will use the coupon; customers using the coupons will spend on average P1,000 at the till; and It will still make a positive margin on the transactions when the coupons are use Assuming FB Seller has decided to use the portfolio approach, on the basis that it reasonably expects that the effects on the financial statements would not differ materially from applying IFRS 15 to the…The Cycle Shoppe has decided to offer credit to its customers during the spring selling season. Sales are expected to be 330 bicycles. The average cost to the shop of a bicycle is $300. The owner knows that only 93 percent of the customers will be able to make their payments. To identify the remaining 7 percent, she is considering subscribing to a credit agency. The initial charge for this service is $540, with an additional charge of $6 per individual report. What is the amount of the net savings from subscribing to the credit agency? A. $3,790 B. $3,920 C. $4,080 D. $4,410 E. $4,950