In economics, the long term is what the market ends up being whereas the short term has to do more with the immediate effects. Another example of the difference between short term and long term is say that I start a sports marketing business. Long term goals are always better than short term goals. One of my long term goals could be that I would like one-hundred clients at the end of my fifth year in business. The more clients I have, the more money I will bring in.
In addition, with the new electric power rates, it makes fiscal sense for oil companies to use a 5-hp motor over all others to save money in the long run. Also, there is a reasonable chance that the company’s market share can increase to 60% due to the competitive advantage of a definite purpose motor in the oil producing market. It also should be noted that DMC should consider doing timely market studies to better predict new demands of the market place in order to avoid crisis situations in the future.
Since the objective was to maximize portfolio value, I made sure for each question asked that I chose the answer with the most risk. My reasoning being that having my money in risky investments will on average lead to a greater return than investments with lower risk. The objective did not mention risk tolerance, and I wanted a portfolio composition with a good chance of earning exceptional returns. After completing the survey, I ended up with an aggressive asset allocation plan (appendix II). This stated that 85% of my money should be invested in stocks, while the remaining 15% of my money should be invested in bonds.
The only way the state will help at all is if we finish our education within two years. The two years may sound adequate enough to get an education. But during those two years, we are still required to work 20 hours a week. Then, in order to finish a two-year degree or certificate within the two-year allotment, we would have to take 12 credits or sometimes up to 18 credits each semester. Taking just 12 credits would work out to be around three hours a day, Monday through Friday.
Therefore, having money equally spread out between bonds, blue-chip stocks, and small caps would be the best scenario to grow my portfolio as well as keeping the risk at moderate degree. I would focus on all five types of stocks that I have previously researched; yet I will still have less money in speculative and potential turnaround because the risk is quite high. Establishment Year (35-55) – This is a very important investing stage in my life because I will have the money to be able to invest freely as well as be quite aggressive in the way I invest. The securities that I will most likely invest in are moderate to high-risk securities that can profit in high return. Investing in a few specified bonds for my possible child’s education and for safety of principle.
An evaluation of the Net Present Value and Internal Rate of Return approach show that investing money on the acquisition of a new draw bench will yield greater returns than our cost of capital (10%). Moreover, the payback period approach shows that we would be able to gain back our initial investment at the end of 6 years and 2 months - a far cry from the equipment's total useable life of more than 50 years. We also need to take a look at the qualitative factors that have an impact in our decision. First, we have to assess if the purchase of a new draw bench will contribute to our firm's future plans. Our long-term goal is to build strong, profitable customer relationships, and we can only do this by providing customer solutions, which are cold-drawn steel.
Jordan Weissmann came to the conclusion that, “by taking money from businesses and giving it to their worst paid employees, raising the minimum wage might, in theory, increase consumer spending” In other words, Weissmann is saying that if the lower class employees have more money to spend, they will purchase more goods and generally increase the flow of money throughout the nation. Looking at all the benefits of raising the minimum wage, one will quickly come to realize that losing 500,000 workers is but a mere price to pay for such a greater
Would we benefit from increasing minimum wage? Stiglitz: Minimum wage is an important function of government sustainability. Overall we can assume that by increasing wages that our industry would grow mimicking the price of utilities. It would encourage greater saving in order to build assets to move a family up the economic ladder which becomes a near impossible challenge for many who fear that their job can be quickly given to another more desperate person. The top 1% gets about 20 to 25% of the national income.
An increase in labor costs would be met with higher consumer prices because companies would have to offset the upturn in wages. If an employer is forced to pay their workers an additional 10%, the employer will have to raise the price of their goods or services by 10% to recoup the cost. Many small businesses operate on razor thin profit margins and having to pay additional wage costs could mean the end for many of these small
... ... middle of paper ... ...fficeMax must be trained in the fine art of using flexible pricing only when appropriate and when not cutting into profit margins at a deep rate. Pricing policies must be implemented over the product life cycle. This is why the price level decision must focus first on the market demand for any given product category offered by OfficeMax. One type of policy is known as a skimming price policy. This is a policy that tries to sell the top of a market or top of a demand curve at a high price before aiming at more price-sensitive customers.