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2 years ago

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Luxury motors introduced a new car to its already popular sedan line. The new car sold very well in its first year, so the compa

ny was surprised to find that its overall sales volume remained about the same as did its market share. What is the likely reason for this

1 answer:

kiruha [24]2 years ago

5 0

The company experienced cannibalization from the new car from its existing product line.

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You just borrowed money for four years to buy a car. The payments are $218 a month and the APR is 7 percent. How is the EAR comp

Serggg [28]

Answer:

EAR= 0.072 = 7.2%

Explanation:

Giving the following information:

Nominal interest rate= 7%

Number of periods= 12 months

<u>To calculate the Effective Annual Rate (EAR), we need to use the following formula:</u>

EAR= (1 + nominal rate/number of periods)^number of periods

EAR= [(1 + 0.07/12)^12] - 1

EAR= 0.072 = 7.2%

5 0

3 years ago

Many Super Bowl football tickets are resold online for several times their face value. As the game day approaches, unsold ticket

Alenkasestr [34]

Answer:

The answer is b) rise in price to target desperate last minute buyers.

Explanation:

Last minute buyers would buy the tickets despite the increase in price. Revenue is likely to be maximized from the premium in the tickets' price.

8 0

3 years ago

Requirement 1. How much cash did the company receive upon issuance of the bonds payable? (Use the factor tables provided with

Masteriza [31]

Missing information:

A lot of information is missing, but I found several examples with very similar requirements.

For example:

Company, Inc. issued $500,000 of 14%, 10-year bonds payable on January 1, 2018. The market interest rate at the date of issuance was 12%, and the bonds pay interest semiannually.

Answer:

In order to determine the market price of the bonds we must add the present value of the bonds' face value + present value of the coupon payments:

PV of face value = $500,000 / (1 + 6%)²⁰ = $155,902.36

PV of coupon payments = $35,000 x 11.470 (PV annuity factor, 6%, 20 periods) = $401,450

market value of the bonds = $557,352.36

The journal entry to record the issuance of the bonds:

January 1, 2018, bonds are issued at a premium

Dr Cash 557,352.36

Cr Bonds payable 500,000

Cr Premium on bonds payable 57,352.36

7 0

3 years ago

GFB has created a socially conscious culture throughout the company. The first step GFB always follows in improving U.S. busines

Cerrena [4.2K]

Create a channel for the business mission and the vision to accommodate the changes.

<h3>Why should the buisness mission accomodate the change?</h3>

When a change is made in a business environment or company, there is need to align the change with the mission.

The mission of the business is what the business wish to achieve and this cannot be successful is every process and change does not align with it.

Therefore, create a channel for the business mission and the vision to accommodate the changes.

Learn more on business below

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4 0

2 years ago

According to the Capital Asset Pricing Model (CAPM), correctly priced securities:

miskamm [114]

Answer:

A) have zero alphas

Explanation:

Stock's alpha show show much they have over or under performed in relation to similar peer stocks. But if the stocks were correctly priced, then alpha should be 0 since no variation, either positive or negative should occur. Alpha basically measures the error in the stock's valuation. It is always better to have positive alphas because if you make a mistake then hopefully is in your favor, but alphas can also be negative and that equals unexpected losses.

This is why the CAPM model only considers beta in its calculation.

5 0

3 years ago