In a franchise, the franchisor allows the franchisee to trade under its name and see its products for a fee The franchisee pays an original fee to franchisor and a
percentage of its profit for the privilege.So,since, Dunkin' Doughnuts is sharing its' brand name and image with David Ungar(his franchisee) it would definately want to improve it...at the least maintain it...David too is right on the other hand as there can be a possibility that he wants to use ingredients of a much higher quality than that provided.But dunkin' doughnuts can't still allow to do that as it has other franchisees to look after.Imagine that=>all the franchisees of dunkin' doughnuts use different ingredients with different quality..wouldn't this affects the image of the franchisor...also all the food items they sell will have a different taste depending on the ingredients.And if one of the franchisee buys cheap ingredients... thereby producing low quality out put ..the customers will not be satisfied...this will not only affect that franchisee but also the Brand image of the whole business worldwide.
To conclude,David may not be wrong with his idea but since dunkin' doughnuts is a big business with a good brand image...it has its' terms and requirements.
Answer:
$163,104
Explanation:
loan principal = monthly payment x PV annuity factor
monthly payment = $950
PV annuity factor, 0.4583%, 240 periods = 145.3726
loan principal = $950 x 145.3726 = $138,104
the price of the house = down payment + loan = $25,000 + $138,104 = $163,104
Answer:
E. $41.69
Explanation:
We know,
Value of stock (
) = 
[In case of constant growth model]
= Next year or expected dividend
= required rate of return
g = growth rate = 5.50%
However, as there is no information regarding expected dividend, we will use the alternative formula to calculate the stock's expected price 3 years from today.
= × 
Here, current stock price, = $35.50
Therefore, = $35.50 × 
= $35.50 × 1.1742
Stock's expected price 3 years from now = $41.69 (rounded to two decimal places)
Therefore, option E is the answer.
Answer:
P = $1790.01
Explanation:
Given data:
Borrowed money = $11,000
Number of installment = 10
Annual rate of interest = 10%
P = $627.45
PV of annuity is given as:
![PV of annuity = P*[\frac{(1-(1+r)^{-n})}{ r}]](https://tex.z-dn.net/?f=PV%20of%20annuity%20%3D%20P%2A%5B%5Cfrac%7B%281-%281%2Br%29%5E%7B-n%7D%29%7D%7B%20r%7D%5D)
P - Periodic payment
r - rate per period
n - number of periods
![11,000 = P*[\frac{(1-(1+0.1)^{-10})}{0.1}]](https://tex.z-dn.net/?f=11%2C000%20%3D%20P%2A%5B%5Cfrac%7B%281-%281%2B0.1%29%5E%7B-10%7D%29%7D%7B0.1%7D%5D)
P = $1790.01
Answer:
creditors should be the answer
