Answer:
the effective annual rate for Freda is 12.70%
Explanation:
<u>Freda investment</u>
500 shares x $ 35 each x 70% margin = 12,250
<u>Financing taken:</u>
500 shares x $ 35 each x 30% = 5,250
<u>Payment of the loan:</u>
principal x (1 + rate x time)
5,520 x ( 1 + (0.0475 + 0.02) x 8/12) = 5,483.67
<u>Holding return:</u>
(500 shares x 37.5 - 5,483.67)/12,250 - 1 = 0.0830
Then we calcualte the annual equivalent rate to the holding return:
effective rate = 12.70 percent
Answer: The options are given below:
A. Both firms can behave opportunistically towards one another to keep the other from gaining competitive advantage.
B. Both firms can achieve competitive advantage over one another, even if they are operating in the same product market, by using each other's most valuable resources.
C. One firm can gain competitive advantage by taking advantage of its partner's resources and giving its partner less valuable resources.
D. Partnering with another firm in a strategic alliance and trading valuable resources enables both firms to further develop their products or markets to gain competitive advantage.
The correct option is D.
Explanation: A strategic alliance is a business agreement that two or more companies come together in order to undertake a project that will be beneficial to all the involved parties, while each retains its independence.
This kind of agreement is not as complex and much less binding as a joint venture, where businesses pool together their resources in order to create a separate business entity.
A strategic alliance will help a company remain relevant because the companies, will through this alliance, increase their customer base, have access to new technologies, diversify their products and services, and even reduce overhead and administrative costs, as they offer top quality service to their customers. In this way, the companies involved in the agreement companies will get an edge over their competitors.
Answer: A Corporation, because she will need financing to get started.
Explanation:
As Annabeth would like to buy a factory to begin making the parts, she would would need a huge cash outlay to get started. By starting a Corporation, she can raise cash easier from the shareholders as well as utilize the knowledge and expertise of others who will join the company to help her in areas she might not be well versed in such as in Accounting or business administration.
Another reason a Corporation would be better is because of the realization of her longer term plans. A Corporation is more likely to expand in the the future which will enable Annabeth realize her dreams of selling to Europe and South America. Indeed, she has a better chance of achieving that sooner rather than later.
Answer:
The answer is D.
Explanation:
An increase in the market rate of interest of a bond will decrease the market price of the bond. Market rate of interest of a bond is inversely related to the market price of the bond.
For example, A bonds is issued with a higher interest rate, the price of existing bonds will fall because the demand for this bond falls.