Dividends that are expected to be paid far into the future have:
A) no impact on current stock price because they are uncertain.
B) great impact on current stock price, due to their expected size.
C) equal impact on current stock price as near-term dividends.
D) lesser impact on current stock price due to discounting.
Answer: D) lesser impact on current stock price due to discounting.
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Travis Computing Systems earns most of its revenue from sales and in-person computer services. The sales force at Travis recently began telemarketing and Web selling. How would telemarketing and Web selling most likely benefit Travis?
A) The need for an outside sales force would be completely eliminated through telemarketing. B) Travis sales reps would be able to engage in more frequent face-to-face interaction with large, high-value customers. C) Travis sales reps would be able to service hard-to-reach customers more effectively. D) The overhead costs of Travis would significantly decrease. E) The current liabilities of Travis would decrease.
What is the probability that the system is full and new arrival must drive on?
In a bank drive-through, there is a single service window and room only for two cars to line-up to wait for service. The mean time between arrivals for drive through customers is 5 minutes. The mean time to complete a customer transaction is 3 minutes. The number of arrivals is distributed according to a Poisson distribution and the service times are exponentially distributed.