The average nominal risk premium on the long-term government bonds was 2.6 percent.
A risk premium is the expected investment return on an asset that is higher than the risk-free rate of return. The risk premium on an asset is a form of compensation for investors. It compensates investors for tolerating the additional risk in a given investment over that of a risk-free asset. Subtracting the return on risk-free investment from the return on investment yields the risk premium.
The nominal risk premium is:
Nominal Risk-Free Rate - Inflation Premium = Real Risk-Free Rate. Nominal rates are the rates we encounter on a daily basis, such as interest rates from banks and other financial institutions.
Nominal risk premium = 6.1 % -3.5 %
= 2.6%.
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<span>This is an example of a Trade Sales Promotion situation. Many companies do this type of thing with techniques such as discounts, coupons, contests and commissions as part of the deals. Also used in these promotions are trade allowances, displays, push money and training programs.</span>
Answer:
The correct option is
D : Technological
Explanation:
Technology such as information and communication technology or ICT has made a significant impact in the marketing environment as it can be used to fetch relevant information regarding price and other information relevant before a purchase order is made.
Answer:
15.4%
Explanation:
required initial investment $33,500
annual cash flows $7,400
useful life 15 years, no salvage value
depreciation expense per year = $33,500 / 15 = $2,233.33
simple rate of return = annual incremental net operating income / Initial investment
- annual incremental net operating income = $7,400 - $2,233.33 = $5,166.67
- initial investment = $33,500
simple rate of return = $5,166.67 / $33,500 = 15.4%
Answer:
b. 65,000 units
Explanation:
The computation of the budgeted production in April month is shown below:
= Sale units + ending inventory units - beginning inventory units
where,
Sale units is 60,000 units
Ending inventory units = 75,000 units × 40% = 30,000 units
Beginning inventory units = 25,000 units
Now put these units to the above formula
So, the units would equal to
= 60,000 units + 30,000 units - 25,000 units
= 65,000 units
