Question: 4 . What value does the CSR card yield for the company? For your quantitative analysis, please consider that ( per p . 3 of

4. What value does the CSR card yield for the company? For your quantitative analysis, please consider
that (per p.3 of the case) the company serves Transactors, Revolvers, and Dormants,
comprising 30%,43%, and 27% of the market, respectively. Information about each segment is
provided below.
Transactors, Revolvers:
Both spend $16K annually.
Credit card balance carried: $0 for Transactors, 50% of annual spend for Revolvers.
Interest paid on balance carried: 21%.
Average points earned: 2 points for every dollar spent.
Dormants:
Spend just enough to earn the sign-on bonus (assume $4K annually).
Credit card balance carried: $0.
Average points earned: 2 points for every dollar spent.

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