This is an example of (C) reducing the risk for consumers.
<h3>Reducing the
risk for consumers:</h3>
- Consumer risk is the danger of difficulties with a product that does not exceed quality standards and consequently enters the market undetected.
- This can result in financial and other losses, such as a loss of reputation, a loss of market share, or even the loss of life.
- Brand loyalty and significant brand image are the most effective in minimizing consumer perception of risk for all four categories of loss.
- Furthermore, Locander and Hermann (1979) investigate the links between information-seeking activities and five products with varying amounts of performance risk and social risk.
How many consumers lower their perceived risk:
- Determine the Potential Risks.
- Provide unbiased data.
- Provide guarantees.
- Make use of Endorsements.
- Display Testimonials.
Therefore, this is an example of (C) reducing the risk for consumers.
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The complete question is given below:
In a competitive market, a computer store offers customers a warranty to help pay for any future damages. This is an example of
(A) following a federal regulation.
(B) lowering prices for customers.
(C) reducing the risk for consumers.
(D) creating a new or better product
Im not even in business and I know it is a balance sheet
Downturn and exceeds. If the economy in a market down turns more busisinesses fail and come up for sale.
Answer:
(a) 1.275%
; 6.25%
; 5.425%
(b) 12.95%
Explanation:
Given that,
After tax Cost of debt = 8.5%
Cost of preferred stock = 12.50%
Cost of Equity = 15.50%
Weight of debt = 15%
Weight of preferred stock = 50%
Weight of equity = 35%
After tax Weighted debt cost = Weight of debt × After tax Cost of debt
= 0.15 × 8.50%
= 1.275%
Weighted preferred stock cost = Weight of preferred stock × Cost of preferred stock
= 0.50 × 12.50%
= 6.25%
Weighted common equity stock cost = Weight of equity × Cost of Equity
= 0.35 × 15.50%
= 5.425%
Weight average cost of the firm:
= After tax Weighted debt cost + Weighted preferred stock cost + Weighted common equity stock cost
= 1.275% + 6.25% + 5.425%
= 12.95%
Note: The values of Debt, preferred stock and common equity are rearranged.
Answer:
Option two provides with the higher interest.
Explanation:
Giving the following information:
Option 1:
Present value= 100,000
Number of years= 3
Interest rate= 0.05
Option 2:
Present value= 100,000
Number of years= 3
i= 0.05/4= 0.0125
To calculate the interest for each option, we need to use the following formula:
Interest= PV*(1+i)^n - PV
Option 1:
Interest= 100,000*(1.05^3) - 100,000= $15,762.5
Option 2:
Interest= 100,000*(1.0125^12) - 100,000= $16,075.45