Answer:
$20000 gain for John Corporation and $10000 loss for Bass Corporation.
Explanation:
John Corporation gain(loss) = FMV of property - Liability assumed - Stock basis
= 55000-10000-25000
= 20000
Bass Corporation gain/loss = 55000-65000
= - 10000
Therefore, $20000 gain for John Corporation and $10000 loss for Bass Corporation.
Answer:
The correct answer is option d.
Explanation:
The most effective model to understand the effect of change of a variable on other variable is by assuming other factors to be constant. This simplifies the model and helps in easily understanding the relationship between the two variables.
Though the assumption of other things being constant does not apply in the real world, it is still used as otherwise change in other factors would complicate the model. If several factors change it would be difficult to understand the relationship between variables.
Here, to study the effect of change in the price of grapes on the market for wine, it is necessary to assume other factors such as income, consumer preferences, etc to be constant.
Answer:
A good marketing tactic for reaching cold prospects is Advertising
Explanation:
A cold prospect is a qualified potential customer that has little or no knowledge about your goods and service or about your company. to make them know about you can reach them through target advertising because you don't have their personal contacts yet to do them a personalized email or calls.
Answer:
A is the correct option.
Explanation:
The increase in the general price is known as inflation. This inflation occurs when people know that Inflation is going to occur and they start preparing for it. e.g In case of increased interest rates if the inflation is anticipated, the banks try to protect themselves by increasing the interest rates. There is also unanticipated inflation which occurs when people are unaware that inflation until the price level increases. In the case of unanticipated inflation, people are unprotected.
Answer:
The current price of the bond would be € 898.87
Explanation:
Hi, we need to bring to present value the coupon payments and also the face value of the coupon in order to find the price of this bond, that can be done by using the following formula.
![Price=\frac{Coupon((1+Yield)^{n}-1) }{Yield(1+Yield)^{n} } +\frac{FaceValue}{(1+Yield)^{n} }](https://tex.z-dn.net/?f=Price%3D%5Cfrac%7BCoupon%28%281%2BYield%29%5E%7Bn%7D-1%29%20%7D%7BYield%281%2BYield%29%5E%7Bn%7D%20%7D%20%2B%5Cfrac%7BFaceValue%7D%7B%281%2BYield%29%5E%7Bn%7D%20%7D)
Where:
Coupon = 1,000*0.078=78
Yield = 0.089 (or 8.9%)
Face Value= 1,000
n = 20 coupon payments
So, everything should look like this.
![Price=\frac{78((1+0.089)^{20}-1) }{0.089(1+0.089)^{20} } +\frac{1,000}{(1+0.089)^{20} }](https://tex.z-dn.net/?f=Price%3D%5Cfrac%7B78%28%281%2B0.089%29%5E%7B20%7D-1%29%20%7D%7B0.089%281%2B0.089%29%5E%7B20%7D%20%7D%20%2B%5Cfrac%7B1%2C000%7D%7B%281%2B0.089%29%5E%7B20%7D%20%7D)
![Price=717.13+181.74=898.87](https://tex.z-dn.net/?f=Price%3D717.13%2B181.74%3D898.87)
Therefore, the price of this bond is € 898.87
Best of luck.