In 2006, an online video rental service that offered a single subscription plan of $5.99 per month for 3 DVD rentals had 306,000 subscribers. This was an increase of 10% over the previous year, and 88,000 were new subscribers. They estimated that they spent $15.60 in acquiring each customer and that for each consumer they incurred annual variable costs (on fulfillment, technology, etc) of $32. If you were to value their current customer base at the end of 2006, what would it be? (calculate CLV using the corrected CLV formula, apply to total number of subscribers).
Corrected CLV formula = CLV = m x ((1+ i)/(1+i -RR)) - AC
i = discount rate
RR = rentention rate
AC = acquisition costsM = Contribution margin
Notes:
For purposes of this exercise, assume this business model can survive, and the discount rate as 10%. Don't forget to convert the revenue to annual figures! Be careful when calculating churn/retention; it is not straightforward.

In which of the following situations would the price of a good be most likely to increase? a. a breakthrough in productive technology enables a company to increase its output. b. an increase in production costs results from a rise in wages. c. there's a sudden increase in the number of companies competing to sell the good. d. a drop in demand happens too quickly for producers to decrease production to keep up.

You want to make an investment in a continuously compounding account over a period of two years. what interest rate is required for your investment to double in that time period? round the logarithm value and the answer to the nearest tenth.

The east asiatic company (eac), a danish company with subsidiaries throughout asia, has been funding its bangkok subsidiary primarily with u. s. dollar debt because of the cost and availability of dollar capital as opposed to thai baht-denominated (b) debt. the treasurer of eac-thailand is considering a 1-year bank loan for $247,000.the current spot rate is b32.03 /$, and the dollar-based interest is 6.78% for the 1-year period. 1-year loans are 12.04% in baht. a. assuming expected inflation rates of 4.3 % and 1.24% in thailand and the united states, respectively, for the coming year, according to purchase power parity, what would the effective cost of funds be in thai baht terms? b. if eac's foreign exchange advisers believe strongly that the thai government wants to push the value of the baht down against the dollar by5% over the coming year (to promote its export competitiveness in dollar markets), what might the effective cost of funds end up being in baht terms? c. if eac could borrow thai baht at 13% per annum, would this be cheaper than either part (a) or part (b) above?