Case discussion: “Will The Roxy Theater Maximize Profits by Eliminating its Student Discount?” Read the case “Will The Roxy Theater Maximize Profits by Eliminating Its Student Discount?” by B. Peter Pashigian. Based on the facts in the case‚ answer the following questions: (a) Does The Roxy have market power? (b) Can The Roxy price discriminate between students and the general public? (c) Suppose that The Roxy keeps its prices intact. What would be the demand for tickets?
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They tend to provide 60% discount in about 100 thousand hotels all over the world. Payment Options The customers can carry out their transactions by using all the major Credit cards‚ Visa cards and MasterCard. Apart from this‚ the payments can be made via the agency cheques‚ which
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quality of strapping offered to the market was now equal for all competitors. The strategy of its competitors was to price their strapping at a consistent discount to Signode and although their products were undifferentiated they were soon breathing down heavily on Signode’s neck because the change in the business environ was to appreciate price discounts above service. In this changing scenario Signode has to change itself or perish - the question is should it change its pricing or its product offering
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16.99. What was the percent decrease in price? III. TRADE DISCOUNTS AND CASH DISCOUNTS Students should know how to: • Calculate single and trade discounts with formulas and complements. • Find List Price when net price and trade discount rate are known. • Calculate chain discounts with the net price equivalent and single equivalent discount rate. • Explain the freight terms FOB and their effect on cash discounts. • Understand the use of credit periods. • Calculate outstanding
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|Dividend ‘14 |.15 | |Dividend ‘15 |.17 | |Dividend ‘16 |.18 | .18 - .14 = .04; .04/3 = .0133 In order to calculate Value using the 2 stage Dividend Discount Model we must calculate the market capitalization rate (k)‚ as well as forecast the price of the stock for 2016 (P2016). The market capitalization rate (k) can be calculated using the CAPM formula. K = rf + β(market risk premium) We are
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* Recommendations HISTORY * “Aldi” is a global discount shop. * Privately owned company * Began in Germany * The chain is made up of two separate groups‚ Aldi Nord (North - operating as Aldi Markt) and Aldi Süd (South - operating as Aldi Süd) * Aldi is owned and managed by two brothers Karl and Theo Albercht. * Aldi in Germany has in all 2500 stores. * Internationally Aldi has 9800 + stores which are present in Denmark‚ France ‚ U.K‚ Austria ‚ Australia
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the possibility that the Northrup bank might extend a line of credit to Wilson Lumber up to a maximum amount of $750‚000. Mr. Wilson thought that a loan of this size would improve profitability by allowing him to take full advantage of trade discounts. Subsequent to this discussion‚ Mr. Dodge had arrange for the credit department of the Northrup National Bank to investigate Mr. Wilson and his company. The Wilson Lumber Company had been founded in 1991 as a partnership by Mr. Wilson and his
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|Chapter | | |1 | | | |Competing with Operations | Discussion Questions 1. Answering this question demonstrates that processes underlie all of our jobs
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If you make this investment now‚ you will receive $120‚000 one year from today‚ $250‚000 two years from today‚ and $800‚000 three years from today. The appropriate discount rate for this investment is 12 percent. a. Should you make the investment? b. What is the net present value (NPV) of this opportunity? c. If the discount rate is 11 percent‚ should you invest? Compute the NPV to support your answer. 4. Given an interest rate of 10 percent per year‚ what is the value at date = 5 (i.e
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machinery to bring delightful and surprising products. Disadvantage/s: · Adding investments is a risk. There is no assurance of gain. · Lowering costs MAY lower the quality. 2. Negotiate longer credit terms and better trade discounts Advantage/s: · More middlemen will patronize the products. · More middlemen will be AGC’s “suki” and will prefer to promote and carry their products. · The middlemen can pay AGC at their respective due dates according
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