The Wall Street Journal magazine offers a significant discount to students who purchase a one-year subscription. If the reason for the discount is price discrimination, we can conclude that:
Options:
a. students have a more elastic demand for newspapers than does the general public.
b. students have a less elastic demand for newspapers than does the general public.
c. there is no difference between a student's elasticity of demand for newspapers and any other person's elasticity of demand.
d. students have a perfectly inelastic demand for newspapers.
Answer:
a. students have a more elastic demand for newspapers than does the general public.
Explanation:
We can make this conclusion ased on the information we have about elastic demand.
A more elastic demand means that a consumer (in this case the students), are more sensitive to price and so desire things (the magazine) more as they become less expensive. In other words, their demand can quickly change negatively if there's a degree change in price.
A taxpayer, age 60, purchases an annuity from an insurance company for $90,000. She is to receive $500 per month for life. Assume that her life expectancy is 24.2 years from the annuity starting date. As a result, her expected return is _______________ and the exclusion amount is ____________________.
Answer and Explanation:
The computation of the expected return and the exclusion amount is shown below:
Expected return is
= Received amount on a monthly basis × total number of months in a year × life expectancy
= $500 × 12 × 24.2
= $145,200
Now the exclusion amount is
= Purchase value of an annuity × Purchase value of an annuity ÷ expected return
= $90,000 × $90,000 ÷ $145,200
= $55,785
FarCry Industries, a maker of telecommunications equipment, has 26 million shares of common stock outstanding, 1 million shares of preferred stock outstanding, and 10 thousand bonds. If the common shares sell for $15 per share, the preferred shares sell for $114.50 per share, and the bonds sell for 101 percent of par ($1,000), what weight should you use for preferred stock in the computation of FarCry's WACC
Answer:
wP = 114.5 / 514.6 = 0.2225 or 22.25%
Explanation:
The WACC or weighted average cost of capital is the cost of a firm's capital structure. The capital structure of a firm can be made up of one or more of the following components namely debt, preferred stock and common equity. The WACC is normally calculated using the market value of these components. The formula for WACC is,
WACC = wD * rD * (1-tax rate) + wP * rP + wE * rE
Where,
wD, wP and wE represents the weight of debt, preferred stock and common equity in the capital structure based on the market valuerD, rP and rE are the cost of debt, preferred stock and common equity respectively.To calculate the weight that should be assigned to the preferred stock in the calculation of WACC, we need to determine the market value of preferred stock and the market value of the capital structure.
Market Value - Debt = 10000 * 1000 * 1.01 = $10.1 million
Market Value - Preferred stock = 1 * 114.50 = $114.5 million
Market Value - Common equity = 26 * 15 = $390 million
Total MV of capital structure = 10.1 + 114.5 + 390 = $514.6
wP = 114.5 / 514.6 = 0.2225 or 22.25%
Mary's a marketing manager for a nationwide restaurant chain. She's considering which channel she should use to advertise her restaurant's new menu upgrades. She decides to use traditional channels. Which traditional channel should May use to reach a broad audience?
Answer:
Television
Explanation:
By doing the promotion in a television could be beneficial for the company as most of the audience are habitual to see the television and ofcourse many of them could aware of the company product by seeing the attractive schemes that ultimately benefit to the company and the customers
So in order to upgrade the menu, Mary used traditional channels and to reach to a broad audience, the television is one of the most traditional channel used
The price of increases. Which of the following is not part of the likely chain of events that follows from this price change? A. Some consumers of reduce their consumption of . B. The demand for increases. C. Producers of increase their production of . D. The manufacturers of lay off some workers.
Answer:
The manufacturers lay off some workers
Explanation:
Some of the factors that are likely to trigger a price increase are reduction in consumption, increase in demand , increase in production by the producers.
However , it is not likely that the lay off of some workers by the manufacturers causes price increase as lay of workers is a cost management move where workers that are less relevant to operation are relieved of their duties so that cost can be adjusted to accommodate a price reduction.
Therefore , workers lay off is more likely to bring a price reduction rather than price increment.
B has a $100,000 Accidental Death and Dismemberment policy that pays triple indemnity for common carrier death. If B is killed from an accident on a commercial flight, what will the policy pay B's beneficiary
Answer:
$300,000
Explanation:
B's life insurance policy had a rider clause that established a triple indemnity in case he/she died in an accident using public transportation as long as B wasn't responsible for his/her death or caused the accident that resulted in his/her death. Triple indemnity means that if your policy covered $1, in case of death it will pay you $3.
A cylindrical part of diameter d is loaded by an axial force p. this causes a stress of pya, where a 5 pd2y4. if the load is known with an uncertainty of 610 percent, the diameter is known within 65 percent (tolerances), and the stress that causes failure (strength) is known within 615 percent, determine the minimum design factor that will guarantee that the part will not fail.
Here is the correct question.
A cylindrical part of diameter d is loaded by an axial force p. this causes a stress of P/A, where A= πd²/4. if the load is known with an uncertainty of ±10 percent, the diameter is known within ±5 percent (tolerances), and the stress that causes failure (strength) is known within ±15 percent, determine the minimum design factor that will guarantee that the part will not fail.
Answer:
the minimum design factor that will guarantee that the part will not fail. = 1.434
Explanation:
Looking at the uncertainty; loss of strength must be raised to [tex]\dfrac{1}{0.85}[/tex] due to the stress that causes the failure (strength) is known within ±15% uncertainty.
Looking at the uncertainty; the maximum allowable load must be reduced to [tex]\dfrac{1}{1.1}[/tex] because the load is known with an uncertainty of ±10.
Looking at the uncertainty; the diameter must be raised to [tex]\dfrac{1}{0.95}[/tex] because the diameter is known within an uncertainty of ±5.
The decrease in the maximum allowable stress can be estimated as:
[tex]\sigma' = \dfrac{P'}{A'}[/tex]
where,
[tex]\sigma =[/tex] stress
P = load
A = cross-sectional area of the cylinder
∴
[tex]\sigma' = \dfrac{P'}{\dfrac{\pi}{4}(d')^2}[/tex]
replacing P' with [tex]\dfrac{1}{1.1}P[/tex] and d' with [tex]\dfrac{1}{0.95}d[/tex], we have:
[tex]\sigma' = \dfrac{(\dfrac{1}{1.1})\times p }{\dfrac{\pi}{4}(\dfrac{1}{0.95 } d)^2 }[/tex]
[tex]\sigma' =\dfrac{P}{\dfrac{\pi}{4}d^2} (\dfrac{\dfrac{1}{1.1} }{(\dfrac{1}{0.95})^2 }) }[/tex]
[tex]\sigma' =\sigma \times (\dfrac{\dfrac{1}{1.1} }{(\dfrac{1}{0.95})^2 }) }[/tex]
[tex]\sigma' =\sigma \times 0.82045[/tex]
[tex]\dfrac{\sigma' }{\sigma } =0.82045[/tex]
Thus, the uncertainty in diameter and the load of the allowable stress needs to decrease to 0.82045
Now, the minimum design factor that will ascertain that the part will not fail can be computed as:
[tex]n_d = \dfrac{loss \ of \ function \ parameter }{maximum \ allowable \ parameter}[/tex]
where;
the design factor = [tex]n_d[/tex]
[tex]n_d =\dfrac{\dfrac{1}{0.85} }{0.82045}[/tex]
the design factor [tex]n_d[/tex] = 1.434.
Thus, the minimum design factor that will guarantee that the part will not fail. = 1.434
Determine the gross income of the beneficiaries in the following cases:a.Justin’s employer was downsizing and offered employees an amount equal to one year’s salary if the employee would voluntarily retire.
Answer:
Justin's salary is not given here, but it doesn't matter. Any payments that Justin will receive as part of the compensation for voluntarily retiring will be included in his AGI. It doesn't matter if Justin is being paid for not working, he is still being paid by someone else and that counts as ordinary income.
"A pattern day trading account has a high market value during the day of $200,000 and has a "0" position at the end of the day. The minimum maintenance margin requirement is:"
Answer:
C. $50,000
Explanation:
These are options for the question;
maintenance margin requirement is:
A. 0
B. $25,000
C. $50,000
D. $100,000
From the question, we were told that a pattern day trading account has a high market value during the day of $200,000 and has a "0" position at the end of the day.
There is a standard of minimum margin rule by FINRA for market value and this minimum margin is either the same or more than 25% , or more than a value of $25,000,
But we are given a high market value of $200,000 thenThen the minimum maintenance margin requirement is:"
$200,000 x 25%
= $200,000×(25/100)
= $50,000
Hugh has the choice between investing in a City of Heflin bond at 6 percent or investing in a Surething Inc. bond at 9 percent. Assuming that both bonds have the same nontax characteristics and that Hugh has a 40 percent marginal tax rate, what interest rate does Surething Inc. need to offer to make Hugh indifferent between investing in the two bonds
Answer: 10%
Explanation:
The City of Helfin bond is a municipal bond so it is tax exempt. The Surething bond is not however so the interest rate that would make Hugh indifferent is one that would equate the after tax return on the Surething bond to that of the City of Helfin.
6% = x ( 1 - Tax)
6% = x ( 1 - 0.4)
x = 6%/0.6
= 10%
Which of the following is the formula for break-even point in sales dollars? A : Fixed costs divided by contribution margin ratio. B : Fixed costs divided by unit contribution margin. C : Contribution margin ratio divided by fixed costs. D : Unit contribution margin divided by fixed costs.
Answer:
B. Fixed costs divided by unit contribution margin
Explanation:
In sales dollars, Break-Even point = Fixed Costs ÷ Contribution Margin.
Break-Even point in (units) = Fixed Costs / (Sales price per unit - Variable costs per unit).
The Break even point is a measure of which a company can determine if when the product its manufactured or produced will start to be profitable.
What is the difference between a job, a career, and a profession?
a business intially sells their product to customers for $50. They find that many people are buying their product so they raise the price to $100. which of the following is a likely response that they will recieve from customers
Answer:
A) Customers might begin to distrust the company
B)Customers will start to complain about the placement of the products
C) Customers will likely buy more of their product
D)Customers will start to complain about promotion
Explanation:
The answer would be A)
Natalie is a senior executive of a department store chain. Every week, she visits one of the stores and pretends to be a customer. She records her observations on the service provided by the store's sales associates and the manner in which her queries were handled. Sales associates who meet the service standards are awarded a small bonus. Therefore, Natalie is a(n) _____.
Answer: mystery shopper
Explanation:
From the question, we are informed that Natalie is a senior executive of a department store chain and that every week, she visits one of the stores and pretends to be a customer as she records her observations on the service provided by the store's sales associates and the manner in which her queries were handled.
We are further told that sales associates who meet the service standards are awarded a small bonus. This shows that Natalie is a mystery shopper. Mystery shoppers simply evaluate product quality, store presentation, cleanliness etc during their shopping experience.
You are the head of sales training for a major financial services firm in New York City. You are conducting a sales training class for a group of new trainees. You are a strong believer in using a structured approach to personal selling. Based on this information, which of the following personal selling process steps are you going to tell the trainees to perform first?
a. Develop a database of potential customers.
b. Develop an engaging sales presentation.
c. Practice closing the sale.
d. Develop a prospect follow-up checklist.
e. Analyze information about potential customers' needs.
Answer:
a. Develop a database of potential customers.
Explanation:
Analyzing the scenario of the question above, it can be understood that, a sales training manager who believes in a structured approach to personal sales as the best option, the ideal would be to tell trainees to perform the stages of the personal sales process first. will tell trainees to first develop a database of potential customers.
Because the first step in the personal selling process is prospecting for customers, so a database of potential customers will be the most structured process for prospecting potential customers and then reach the other stages of the sales process in an organized and effective way.
Evelyn has three children and is a stay-at-home mom. she is majoring in early childhood education at ashford. once my family and i were hosting an impromptu dinner to celebrate my sister's promotion at work. i enjoy cooking so i was more than willing to prepare dinner for my family and hers, a total of ten people. because i enjoy cooking, my kitchen is usually well-stocked. before preparing one of the dishes, i realized that i was missing a couple of the key ingredients. i wasn't sure what to do and decided to do some research for inspiration. i began carefully looking through other recipes on a couple of cooking websites that i use. i realized that i could make a couple of changes and adjustments to those recipes using what i had and prepare those. now, i feel as though i have invented new recipes! which learning patterns was evelyn using in field-fitting her plans?
Answer:
Everlyn is using Precision and Confluence learning pattern
Explanation:
Based on the information given about Evenly we can vividly say that she is using PRECISON and CONFLUENCE learning pattern.
PRECISION learning pattern can be defined as the type of learning pattern in which a person or an individual with precison personality wish or desire to have better explanation of a thing by gathering alot of information and they tend to as well ask alot of question which is why this type of people tend to feel great when the outcome of their finding is positive while CONFLUENCE learning pattern on the second hand can be defined as the way or process which help to describe the way in which a person or an individual which such personality make use of their imagination by trying to look at a things in a more unique way which in turn enable them to have a big picture of it such as in the case of Everly.
Therefore Everly was using PRECISION and CONFLUENCE learning pattern in field-fitting her plans.
What is wrong with the following specific purpose: "To inform incoming students about the scholarship opportunities at the college and the financial-aid process"
Answer:
there is more than one key idea
Explanation:
The main error with this is that there is more than one key idea. When dealing with a specific purpose, it must be just that "specific". In other words, the message must focus completely on a single key aspect that it is trying to convey. Adding more than one key idea divides the message and the reader's attention which ultimately fails the main purpose of the message.
Information systems help employees within the organization. Certain workers help certain managers and different systems help these managers make their specific decisions. Which system supports complex, non-routine decisions that typically middle managers and knowledge workers make
Answer:
The correct answer is: Business Intelligence System.
Explanation:
To begin with, the name of "Business Intelligence" refers to the system that provides a series of processes regarding architectures and technologies that will help the managers of an organization by converting raw data into information that will make the decision making process more easy to do in order to have more profitable actions taken by the ones that make the decisions. So therefore that this type of software supports non-routine decisions that are complex inside the company.
Gugenheim, Inc., has a bond outstanding with a coupon rate of 5.7 percent and annual payments. The yield to maturity is 6.9 percent and the bond matures in 13 years. What is the market price if the bond has a par value of $2,000?
Answer:
Price of bond = $1,798.27
Explanation:
The value of the bond is the present value(PV) of the future cash receipts expected from the bond. The value is equal to present values of interest payment plus the redemption value (RV).
Value of Bond = PV of interest + PV of RV
The value of bond for Gugenheim, Inc.can be worked out as follows:
Step 1
PV of interest payments
annul interest payment
= 5.7% × 2000 = 138
annual yield = 6.9%
Total period to maturity = 13 years
PV of interest payment = 114 × (1- 069^-13)/0.069=958.19
Step 2
PV of Redemption Value
= 2,000 × (1.069)^(-13) = 840.078
Price of bond =958.196089 + 840.078 =1,798.27
Price of bond = $1,798.27
A fundamental analysis is reviewing a corporation's income statement. For the period, the company reported net sales of $10 million, cost of goods sold of $6 million, depreciation expense of $1 million, interest on long-term debt of $1 million, and income taxes of $500,000. With this information, the analyst knows that the company's cash flow from operations was
Answer:
the company's cash flow from operations was $2,500,000.
Explanation:
Calculation of cash flow from operations :
Net Sales $10,000,000
Less Cost of Goods Sold ($6,000,000)
Gross Profit $4,000,000
Less Expenses :
Depreciation expense ($1,000,000)
Interest on long-term debt ($1,000,000)
Income tax expenses ($500,000)
Operating Profit / (Loss) $1,500,000
Add Back Depreciation $1,000,000
Operating Cash flow $2,500,000
A formalized report that summarizes your current financial situation, analyzes your financial needs, and recommends future financial activities is a
Answer:
financial plan.
Explanation:
Technician A says that employers must inform their employees about any hazardous chemicals used in the work place by using Safety Data Sheets. Technician B says that the work place Hazardous Materials Information Systems is the Canadian version of the Safety Data Sheets. Which technician is correct?
Answer:
Techican B
Explanation:
_____ tend to move in anticipation of the business cycle, turning up in anticipation of recovery and turning down at signs of economic weakness. a. Capital goods b. Financial stocks cyclical companies do. Consumer staples e. Consumer durable goods
A five-year security was purchased two years ago by an investor who plans to resell it. The security will be sold by the investor in the so-called Group of answer choices surplus market. secondary market. primary market. deficit market.
Answer:
Secondary market.
Explanation:
In this scenario, a five-year security was purchased two years ago by an investor who plans to resell it.
Hence, the security will be sold by the investor in the so-called secondary market.
When one investor sells his or her stock directly to another, the transaction is said to occur in the secondary market.
Secondary market can be defined as a market where various investors sell and buy securities from other investors.
Some examples of secondary market around the world are New York Stock Exchange (NYSE), NASDAQ, London Stock Exchange (LSE) and National Stock Exchange (NSE).
On the other hand, the primary market refers to the market where these securities that are being sold are issued or created.
In January there was a large drop in the number of new houses sold, because interest rates for mortgages were falling and many consumers were waiting to see how low the rates would go. This large sales drop was accompanied by a sharp rise in the average price of new houses sold. Which of the following, if true, best explains the sharp rise in the average price of new houses? (A) Sales of higher-priced houses were unaffected by the sales drop because their purchasers have fewer constraints limiting the total amount they pay. (B) Labor agreements of builders with construction unions are not due to expire until the next January. (C) The prices of new houses have been rising slowly over the past three years because there is an increasing shortage of housing. (D) There was a greater amount of moderate-priced housing available for resale by owners during January than in the preceding three months. (E) Interest rates for home mortgages are expected to rise sharply later in the year if predictions of increased business activity in general prove to be accurate
Answer:
(A) Sales of higher-priced houses were unaffected by the sales drop because their purchasers have fewer constraints limiting the total amount they pay.
Explanation:
The question asks us to state which statement would explain the sharp rise in the average price of new homes sold, and the only option that does that is option A. The average price of new homes sold includes both cheap, middle class and expensive homes, and assuming that the sale of both cheap and middle class homes decreased, the average price of new homes sold would increase because the weight of expensive homes is larger.
E.g. 100 houses are sold:
40 cost around $150,000
50 cost around $300,000
10 cost around $1,000,000
average price = $310,000
sales of cheap and middle class homes decreased, so only 70 were sold:
25 cost around $150,000
35 cost around $300,000
10 cost around $1,000,000
average price = $346,429 (represents an 11.75% increase)
What is the gain or loss from purchasing a put option on $100,000 face value Treasury bonds with a strike price of $90,000 (90 points) and a premium of 1.5 points ($1,500) with an expiration date at the end of July if the end-of-July selling price for the bonds is $80,000.
Answer:
Profit of $8,500
Explanation:
Strike Price = $90,000
Premium = $1,500
Break even point = Strike price - Premium
Break even point = $90,000 - $150
Break even point = $88500
Profit = Break even point - Share price
Profit = $88,500 - $80,000
Profit = $8,500
A basketball coach is performing a cost/benefit analysis in order to determine if more hours of practice would help the team score more points. The coach's action is an example of
Answer:
Marginal thinking
Explanation:
Marginal thinking refers to the thinking of decision makers in which the one additional unit is more than its cost
Since in the question it is mentioned that the coach of basketball performed cost / benefit in order to achieve more points by doing more hours of practice
Therefore the given situation, it is an example of marginal thinking
Brian manages his company's Google Search Ads campaign. He regularly reviews the optimization score to make his Google Search campaign as effective as possible. What is Brian's optimization score based upon?
Answer: Key aspects of his accounts, including statistics, settings, and industry trends.
Explanation:
The options to the question are:
a. Testing and reporting on the speed of Brian’s websites
b. Key aspects of his accounts, including statistics, settings, and industry trends.
c. Judging ad popularity on social media
d. Comparing Brian’s sales with ad serving data.
Optimization score simply runs from 0% to 100% and it is simply an estimate that'll tell am individual or firm how well their Google Ads account will perform. Having 100% means that the account will be able to perform at full potential.
Based on the information given in the question, Brian's optimization score is based upon Key aspects of his accounts, including statistics, settings, and industry trends.
You receive a questionnaire regarding a sales misrepresentation inquiry. The questionnaire regarding the complaint must be completed and returned promptly. When must you return your response?
Answer:
A response must be sent within 5 business days
Explanation:
When a customer complaint is made it is required that the agent must send a response within 5 business days.
In the event that a response is not sent within the 5 days, a non response letter is sent to the agent that requires him to respond within 2 days.
Termination of the agent is initiated when the agent again fails to respond within the extra 2 days.
Complaints are made against agents and the questionnaire is sent to the agents to gain their own view of what occurred.
Scot and Vidia, married taxpayers, earn $90,400 in taxable income and $5,000 in interest from an investment in City of Tampa bonds. (Use the U.S. tax rate schedule for married filing jointly). (Do not round intermediate calculations. Round your answer to 2 decimal places.)a. If Scot and Vidia earn an additional $81,000 of taxable income, what is their marginal tax rate on this income?b. How would your answer differ if they, instead, had $81,000 of additional deductions?
Answer:
a) Since Scot and Vidia's ordinary income = $90,400 + $81,000 = $171,400, their marginal tax rate will be 24%, and they will owe $29,211 + [($171,400 - $171,500) x 24%] = $29,295 in taxes
They will also have to pay 15% of $5,000 (capital gains) = $750
b) Since Scot and Vidia's ordinary income = $90,400 - $81,000 = $9,400, their marginal tax rate will be 10%, and they will owe $9,400 in taxes
They will also have to pay 15% of $5,000 (capital gains) = $750
2 industry leaders are... (please answer, many points and will reward brainliest!)
Answer:
Explanation:
a company that is considered the most effective in its industry, for example, because it sells more products, makes more profit, or has a better known brand than its competitors: The industry leader with a 30% market share, it is expected to grow 35% a year.
Answer:
Mohandas Karamchand Gandhi. ...
Nelson Mandela. ...
Martin Luther King Jr. ...
Abraham Lincoln. ...
George Washington. ...
Napoleon Bonaparte. ...
Franklin D. ...
Winston Churchill