I believe the answer is:
- What can go wrong?
This question is asked to find out the potential risk that may occur after purchasing the product.
- What is the likely return?
This question is asked to find out potential benefit from consuming the product
-Is the risk worth the return?
<span>The purchase should be made only if the potential benefit would outweigh potential risk
</span>
Answer:
incentives and allowances
Explanation:
According to the price equation, the actual price is the list price less blank incentives and allowances, plus extra fees.
Answer:
28.63%
Explanation:
The computation of the cost of preferred stock is shown below:
Cost of the preferred stock = Dividend ÷ Price of the stock
where,
Dividend is
= $1,000 × $15%
= $150
And, the price of the stock is
= Market value of the stock - flotation cost
= $576 - $52
= $524
So, the cost of preferred stock is
= $150 ÷ $524
= 28.63%
We ignored the marginal tax rate i.e 40%
Answer:
The appropriate solution is "$130,000".
Explanation:
The given values are:
No. of common shares outstanding
= 50,000
Dividend per share
= $1.80
No. of preferred shares outstanding
= 8,000
Dividend per share
= $5
Now,
The total dividend on common shares will be:
= 
On substituting the values, we get
= 
= 
($)
The total dividend on preferred stock will be:
= 
On substituting the values, we get
= 
= 
($)
Hence,
The total dividend paid by company will be:
= 
= 
= 
($)
Thus the above is the correct answer.
Answer:
some goods aren't internationally traded
Explanation:
Purchasing power parity is most popularly known as the PPP. It may be defined as the measure of the prices of the various countries which makes use of the price of some specific goods in order to compare the absolute purchasing capability or power for the countries' currencies.
It is used to measure and compare prices at different locations.
The purchasing power does not hold good in the short to the medium run as different countries produces different goods and as such all the goods are not internally traded all over the locations or countries.
