Answer:
4.56%
Explanation:
The annual percentage rate refers to the rate at which the loan amount is equal to the present value of cash flows
In mathematically
Loan amount = Present value of cash flows
Loan amount = Monthly payment × PVAF (rate, number of years)
$31,000 = $493.25 × PVAF (rate, 72 months)
So,
PVAF (rate, 72 months) = 62.8485
And, the monthly rate is = 0.38%
So, the APR is
= Monthly rate × total number of months in a year
= 0.38% × 12
= 4.56%
The 72 months is
= 6 years × 12 months
= 72 months
Answer:
C. Yes. If repair rates are higher for planes that have been resold, this would be an indication of a lemons problem
Explanation:
Lemons problem is an issue of quality of product, asset, investment : due to asymetric information about the respective quality.
Asymetric Information is when one one party in transaction has more knowledge about the quality of product or asset, than the other party.
Second hand goods are an illustration of this case, as seller has more information about the real quality of good or asset than buyer.
Lemon's problem in single engines airplanes : can be analysed by concept of second hand goods 'asymetric information, lemons problem' it. If the 2nd hand resold planes require higher repairs, it indicates that the buyer had asymetric information about bad quality of planes ( the information which seller had), but realisation of bad quality later implies higher repairs.
Answer:
16.091%
Explanation:
The computation of the WACC is shown below:
= (Weightage of debt × cost of debt) × ( 1- tax rate) + (Weightage of preferred stock) × (cost of preferred stock) + (Weightage of common stock) × (cost of common stock)
= (0.3 × 9%) × ( 1 - 21%) + (0.07 × 9.5%) + (0.63 × 11.60%)
= 2.133% + 6.65% + 7.308%
= 16.091%
Basically we multiplied the weightage with its cost
Answer:
d. retail positioning matrix
Explanation:
In the example, it is noted that Boston Market has added value to its original restaurant format (with pickup, delivery...) on the one hand. On the other hand, they broadened the product line with the grocery foods. The two factors imply the axes of the <em>retail positioning matrix.</em>
The <em>retail life cycle</em> is an often confused topic that is similar to the <em>product life cycle</em> (which is related to products and services exclusively) conceptually. It consists of the following phases: innovation, growth, maturity and decline. Although this example can be correlated to the <em>innovation </em>phase of the retail life cycle, we cannot pinpoint the Boston Market's place on the retail life cycle curve, as we do not have info about its competitors, market share and other external info. Therefore, we cannot detect whether the company is in its up or down phase.
The <em>wheel of retailing</em> is an irrelevant concept, which refers to the tendency that most retailers enter a market in an extremely competitive manner (low cost, for example) and then becomes more exclusive (high cost, better reputation...).
