Aswath Damodaran! 2! First Principles Aswath Damodaran! 3! The Choices in Financing There are only two ways in which a business can make money. • The first is debt. The essence of debt is that you promise to make fixed payments in the future (interest payments and repaying principal). If you fail to make those payments, you lose control of your business. • The other is equity. With equity, you do get whatever cash flows are left over after you have made debt
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living over the time. The Consumer Price Index (CPI) The CPI and inflation rate are calculated by the Bureau of Labor Statistics by computing prices of hundreds of goods and services. For better understanding and explanation pretend that consumers buy only two products pizza and coke How to calculate the CPI? 1. Fix the basket.
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afraid to do so because society has taught her that men dislike women to call them. This leaves her stuck and unable to do anything but rationalize why her lover hasn't called, play mind games with herself in an attempt to make him call, rage because he hasn't, and beg God to make him call. In her article "On the Wire with Death and Desire: The Telephone and Lovers' Discourse in the Short Stories of Dorothy Parker" April Middlejan discusses how the telephone is an intimate form of communication that
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world’s largest fashion retailer.[1] Table 3.1 compares the two fashion retailers. While Inditex supports eight brands, Zara is unquestionably the firm’s crown jewel and growth engine, accounting for roughly two-thirds of sales.[2] Table 3.1. Gap versus Inditex at a Glance Gap Inditex Revenue $14.5 billion $14.7 billion Net Income $967 million $1.68 billion Number of Stores 3,149 4,359 Number of Countries 6 73 Biggest Brand Gap Zara Number of
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Microeconomics: Prin., Apps, & Tools, 8e (O'Sullivan) TB1 Chapter 1 Introduction: What Is Economics? 1.1 What Is Economics? 1) Economics is best defined as the study of: A) financial decision-making. B) how consumers make purchasing decisions. C) the choices made by people faced with scarcity. D) inflation, unemployment, and economic growth. Answer: C Diff: 1 Topic: What Is Economics? Skill: Definition AACSB: Reflective Thinking Learning Outcome: Micro-1 2) Economics
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so that consumers are as well off as possible (efficient in allocation) * Opportunity Cost: (pg. 30) * The production possibility frontier is a reminder that the fundamental point that the true cost of any good isn’t the money it costs to buy, but what must be given up in order to get that good * The production possibility frontier model can also be used to examine situations in which opportunity costs change as the mix of output changes * When only a small amount of a good
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Process that has changed my life The internet has greatly changed the lives of many people in my country and definitely the world over. Now people are able to do things which they could not do before the coming of the internet. The following are how the internet has influenced many people: • E-banking • E-learning • Communication through emails, social networks and Skype, for example • Ecommerce • Surfing the internet for learning • Research. This list is not exhaustive. However one process
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= 200 – 0.2Q MR = 200 – 0.4Q MC = AC = 20. At a price of $80, the quantity demanded is 600. Therefore consumers will buy 600 units b. You have to calculate the monopoly price. 200 – 0.4Q = 20 Q = 450; P = $110 profit = ($110 – 20)(450) Profit = $40,500 With the block pricing scheme, the monopolist makes The monompolist will make ($120 – 20)(400) on the first 400 units and ($80 – 20)(200) on the next 200 units, or $40,000 + $12,000 for a total of $52,000 on the
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organization. Geographic departmentalization is desirable where regional differences make regional coordination between functions necessary; with modern communication it is seldom justified simply because of distance. Customer departmentalization is best use when adapting to customer differences and requirements is essential, such as in the design and manufacture of defense versus industrial goods or in sales to chain stores versus independent retailers. Product departmentalization is best used when coordination
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relationships, international business management, international marketing, international negotiation, and consumer behavior. Seven themes are suggested as guidelines for further research: Cultural impacts of markets, international versus domestic business communication, standardization versus adaptation in cross-cultural communication; cross-cultural dimensions of business communication research, cross-cultural aspects of the business communication mix (advertising, promotion, sales, public relations, trade
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