Answer:
The question is missing the options which are below:
A Real risk-free rate differences.
B Tax effects.
C Default risk differences.
D Maturity risk differences.
E Inflation differences.
The correct answer is option C,default risk differences.
Explanation:
Default risk is the increase in return given to an investor to compensate the investor for the likely losses that may arise due to the inability of the borrower to make funds available to the investor on the maturity date or even in required amount.
Different debt instruments have different default risk depending on their credit rating as rated by international rating agencies.Such rating is a function of many factors,which includes:
Balance sheet position
Profitability
Liquidity strength of the company
Macro-economic factors and some others.
Liquidity refers to the ability of the company to settle obligations such as repayment of bonds and interest when due.
Invariably,liquidity has a higher impact in determining credit rating as well as default risk of an instrument.
Answer:
d. percentage change in the quantity demanded of one good divided by the percentage change in the price of another good.
Explanation:
Price-demand elasticity measures the demand sensitivity of a good when a change in the price of another good occurs. For example, what happens to the demand for bread when the price of butter varies? This depends on the cross elasticity of demand since these goods tend to be complementary.
The price elasticity of cross demand between two goods is easily calculated by a formula where the numerator is the change in the quantity of a good and the denominator is the percentage change in the price of the complementary good.
If the calculation of elasticity is greater than 1, it means that the amount demanded for bread is sensitive (elastic) to the price of butter and tends to vary sharply. If the result is between 0 and 1, the demand is inelastic, that is, the amount of bread demanded will not change considerably when the price of butter varies. If the calculation is equal to 1, then the demand for bread varies perfectly with the price of butter.
Answer:
develop your research plan
Explanation:
The five steps in the marketing research process are:
- Define the problem (or opportunity)
- Determine your research design
- Develop your research plan: during this step you design your research tool, e.g. questionnaires, focus groups, etc. You must also prepare a budget that covers the costs of carrying out your research plan.
- Collect relevant data.
- Analyze data.
- Visualize data and report findings.
Answer: Income earned for cups = $1,000
Explanation:
Given:
Materials cost = $40,000
Labor cost = $44,000
Remixing cost amount to $2,000
TSC sold the platters for $100,000 and the cups for $12,000
There will be a decrease in net income due to non-selling of cups
= $12,000 - $2,000
= $10,000.
Thus, the Company's total income will decrease by $10,000 if it stops making and selling cups.
Joint cost allocated to cups
= (40,000 + 44,000)×12,000 ÷ (100,000 + 12,000)
= $9,000
∴
Income earned for cups
= $12,000 - $2,000 - $9,000
= $1,000
Answer:
Option E Price Escalation
Explanation:
Price Escalation is when the government imposes additional taxes on the product which is exported to their country, this makes the product expensive and the customer as a result don't buys that product. Such type of increases in prices are known as price escalation.
