Investment decisions

To conclude most companies in the short term will find it hard to profit maximise as they will find it difficult to find the exact point at which MR=MC. However they could look to profit maximise in the long run. This is where a firm will calculate the long run average costs of production at full capacity and then adds a percentage mark up on the price for the profit they want to make, this pricing strategy believes that a firm will adjust output in the short run in response to changes in demand rather than the price. However firms that are in the private sector still profit remains a key objective in the long term, therefore the idea that profit maximisation is always the key objective for a firm is very much dependent on what type of business it is and the sector it is in and most that are in the private sector, profit will be the near the center of all its key

Use the Internet to research two (2) of the leading competitors in the low-calorie frozen, microwavable food industry, and take note of their pricing strategies, profitability, and their relationships within the industry (worldwide).

In anticipation of rising prices in the low-calorie frozen microwaveable food market companies should consider branding, product differentiation, competitive and temporary discount pricing strategies. The frozen microwavable food company is a monopolistic market. The demand function for low calorie microwavable food depends largely on the

In this essay I will assume the role as an employee for the maker of a leading brand of low-calorie, frozen microwavable food chain. Using the data from 26 supermarkets around the country for the month of April and the equation data that has been provided to me, I will compute the elasticity for each independent variable as well as determine the implications for each of the computed elasticities for the business in terms of short-term and long-term pricing strategies. Based on these calculations I will recommend whether the firm should or should not cut its price to increase its market share. Lastly, with the understanding of the concept on

An investment also known as a security is a pledge of money from an individual, government, or cooperation that is expected to accrue additional wealth on top of its original dollar amount. An investment can be a long-term or short-term obligation depending on the investor’s goals and/or assets they choose to invest in. The investment decision process is a two-step process which is necessary to make a sound trustable and efficient investment. The first step involves an evaluation of the investment you as the investor are interested in committing money towards, including characteristics of the security (i.e. how it acts in the current market, how the current/future market may react to this investment and possible returns on your investment). Finally, the management of your investment portfolio, including how often it should be revised, how the performance of your securities should be measured (how often they should be measured), and other important aspects of your current investments. Investing revolves around one basic concept, improving our future, investors invest money today to improve their welfare in the future which is why understanding what an investment is and the process of decision making before investing is extremely important.

Lease et al. (1974) tried to find out who the individual investor is, how he makes his decisions, how he is dealing with his broker and analysis of his asset portfolio among the US investors. With the help of a questionnaire, the investment strategies followed by investors were determined. The responses portrayed that the investors followed a fundamental approach preferring a balanced and well-diversified portfolio of income. It was found that investors preferred long-term capital appreciation securities withdividend income instead of short-term gains. The decision framework of investors revealed by their responses was that the groups preferred journals and newspapers as sources of information. The factors such as age, income level and sex

This case study involves leading brands of low-calorie, frozen, microwavable food that estimates the following demand equation for its product using data from 26 supermarkets around the country in the month of April. Furthermore, we are using the regression equation from Assignment 1 to determine the market structure in which the low-calorie frozen, microwavable food company operates. The following is the optimal price with new data from the information of previous data that was collected for the regression equation from the 26 supermarkets observed. The plan is to obtain an “optimal” selling price due to recent changes by selling environment. That suggests an imperfectly competitive market where our company has substantial market power to set our own price. From Assignment ,1 it was determined that the market structure (or selling environment) was perfectly competitive and the equilibrium price was to be calculated by setting QD equal to QS. The estimated price of Quantity demanded for the optimal price is as follows:

Capital budgeting is very important in decision making for the financial manager of any firm. Most new projects take time in developing because of the research analysis required in opening a new addition to the company. The cash flow is a huge factor in making the decision of a project. For instance, capital expenditures require firms to outlay large sums of funds to initialize the project. Second, firms will need to formulate ways of generating and repaying these funds once they are initiate. Third, there must be a good since of timing and critical finance decision to make it all happen.

For any firm, operating in a competitive market or corporate realm, it is essential to have fair understanding of operations; whether to continue operations or not. According to the studies, a firm will continue to produce, as long it could cover its variable cost. If a firm can manage to cover it variable cost, it would continue its operations. Firm would be forced to shut down its operations when the variable costs increase; however, in the short run, fixed cost has no impact on the short-run decisions. In addition, despite of shutdown, a firm cannot leave industry and it will continue to pay fixed cost, for a certain time, on which it has agreed, before the start of

Mr Price has 29 successive reporting periods of profit growth and 81,4% in cash sales. They have recently opened stores in Australia, as well as Nigeria, proving international growth. This international growth has helped increase retail sales by 8,6%, equivalent to 8,5 billion rand. This is a large increase compared to comparable competitors which only have a 4% increase! such as Edgar's. The operating profit and margin, basic and headline earnings per share, as well as the dividend per share has increased by an average of 15,6 percent.

Strategies of our firm In oligopoly market, one important method to increase the market share is to keep the price lower than competitors price. However, because at the beginning of the game, our firm ignored the importance of the plant size, process improvement and the training, our production cost was higher than other firms. So we could not use the

1. Analyze the fast food industry from the point of view of perfect competition. Include the concepts of elasticity, utility, costs, and market structure to explain the prices charged by fast food retailers.

So the investor will invest 32.58860806% of the investment budget in the risky asset and 67.41139194% in the risk-free asset.

However, the advantages of forming a merger depend on a number of factors. Specifically, the success of a merger depend on the scope of economies scale created, effects on monopoly power, and the effects on cost. However, due to the threats, blockbuster chooses to pursue its expansion plan by capital investment. Capital projects are long term investments that are made to build on, or improve a capital intensive project. A project that is capital intensive requires the input of considerable amounts of capital especially financial and labor to start and run. They also require a lot of planning and resources. There are a number of ways that a firm can finance capital projects. Before determining the best way to finance capital projects, a firm should seek to determine the costs, the viability of the investment and the stream of returns from the investment.

Net present value, internal rate of return, and profitability index are measures used to compare two mutually exclusive capital investment proposals. "SAI wants to increase market share and keep up with technology, which can be done by either expanding their existing Digital Imaging market share or by entering the Wireless Communication market," (UoP, 2007). Both alternatives have areas of opportunity as well as potential risks that the company will have to consider. This paper will analyze the investment risk decisions SAI currently faces with the objectives of increasing its market share and keeping pace with technology.