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3 years ago

Tying sales is a market practice designed to increase sales volume. A "tying sales" situation is said to occur when what happens

Business

1 answer:

vfiekz [6]3 years ago

7 0

Answer: customer is required to buy one product only if the customer also buys a second product

Explanation:

Tying sales is a market practice designed to increase sales volume. A "tying sales" situation is said to occur when a customer is required to buy one product only if the customer also buys a second product.

Tying sales is simply defined as a scenario whereby the purchase of a good or service is compulsory when one buys a different good or service. This meane the individual helps us buying two products.

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Consider a 1-year option with exercise price $60 on a stock with annual standard deviation 20%. The T-bill rate is 3% per year.

Yakvenalex [24]

Answer:

Case 1: 0.4266

Case 2: 0.5987

Case 3: 0.7422

Explanation:

We will use the following formula to find d1 which is also given in the attachment below:

d1 = [ ln(S/K) + (r + 0.5 * s^2)*t ] / s * √t

Here

K is strike price and is $60

r is risk free rate which is 3%

s is annual standard deviation which is 20%

t is the option period which is 1 one year

Case 1: Stock Price is $55

Here K is $55. Putting values in the above equation, we have:

d1 = [ ln(55/60) + (3% + 0.5 * 20%^2)*1 ] / 20% * √1

d1 = -0.1851

By using the normal distribution table, we can calculate N(d1) which is:

N(d1) = 0.4266

Case 2: Stock Price is $60

Here K is $60. Putting values in the above equation, we have:

d1 = [ ln(60/60) + (3% + 0.5 * 20%^2)*1 ] / 20% * √1

d1 = 0.25

By using the normal distribution table, we can calculate N(d1) which is:

N(d1) = 0.5987

Case 3: Stock Price is $65

Here K is $65. Putting values in the above equation, we have:

d1 = [ ln(65/60) + (3% + 0.5 * 20%^2)*1 ] / 20% * √1

d1 = 0.6502

By using the normal distribution table, we can calculate N(d1) which is:

N(d1) = 0.7422

6 0

4 years ago

In 20x9, Fox Inc. has the following information related to its defined benefit pension plan: Fair value of plan assets, 12/31/x9

Alexxx [7]

Answer: $4,400 Loss Amortization

Explanation:

At the start of the year x9, Fox Inc's projected benefit obligation exceeds the fair value of plan assets. Therefore, we we will have to amortize the unrecognized gain or losses over the remaining services period which is 15 years.

Unrecognized net losses = $396,000

Less: Exceeding = (330,000)*

Excess 66,000

Divide by remaining service 66,000/15 = $4,400

*Exceeding = beginning projected benefit obligation (3,300,000) x 10% = 330,000

6 0

4 years ago

Bronze Company's sales forecast for April is 12,000 units, for May is 22,000 units, and for June is 25,000 units. Sales totaled

Arisa [49]

Answer:

A. 3,750 units.

Explanation:

Since the inventory level is planned in such a way that the ending inventory of finished goods for a specific month is always equal to 15% of the units which will be sold during the next month, therefore, the ending inventory for month of May will be equal to the 15% of units which will be sold in the month of the June and shall be determined as follow:

May Ending inventory=0.15*units to be sold in June

=0.15*25,000

=3,750 units

So based on the above discussion and calculations, the answer is A. 3,750 units.

8 0

4 years ago

Alexander hamilton proposed that the u.s place mild tariffs on imported goods in order to

stellarik [79]

I believe it's b. grow its manufacturing sector.

3 0

3 years ago

The advantage to departmentalizing by the function performed is Group of answer choices A. increased accountability for product

OLEGan [10]

Answer: Option B

Explanation: In simple words, functional departmentalization refers to the process in which an organisation makes different departments within, for performing different tasks.

For example - all the activities related to procurement of money will be performed by finance department.

The main advantage of doing so is that each department will perform only specific assigned activities and all the employees working in the departments will be those who are experts in the field.

8 0

4 years ago