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Shalnov [3]
4 years ago
8

Frank Barlowe is retiring soon, so he is concerned about his investments providing him steady income every year. He is aware tha

t if interest rates _____, the potential earnings power of the cash flow from his investments will icrease. In particular, he is concerned that a decline in interest rates might lead to _____ annual income from investments. What kind of risk is Frank most concerned about protecting against?a. interest rate riskb. reinvestment rate riskTrue or false: assuming all else is equal, short-term securities are exposed to higher reinvestment rate risk than long-term securities.a. trueb. falso
Business
1 answer:
dezoksy [38]4 years ago
7 0

Answer: He is aware that if interest rates <u>increase</u>, the potential earnings power of the cash flow from his investments will increase. In particular, he is concerned that a decline in interest rates might lead to <u>less</u> annual income from investments.

Frank is most concerned about protecting agains the "b. reinvestment rate risk" because it is the risk that interest rates will fall and therefore the investor must reinvest the cash flows of current assets at a lower rate than he did at the beginning. And as a consequence there is a decrease in income.

True or false: TRUE. Because Cash flows receivable in the short term are closer to being reinvested than cash flows receivable in the long term.

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​Jake, a pharmaceutical sales​ representative, often takes lunch to​ doctors' offices. Over lunch with the doctors and their​ st
sleet_krkn [62]

Answer:

The correct answer is: order-creaters.

Explanation:

To begin with, the area of personal selling there are three types of different approaches regarding the sales person and his proper way of selling. According to this theory, one of those types is the one named <em>"order-creaters"</em> and that concept comprehends the type of sellers that primarily focos on not to close the sale, but to persuade the regular customer to promote the product to other clients from the same audience. Therefore that Jake, when goes to have launch in the same place as the doctors, even though he does not want to make a sale, he is looking forward to establish a relationship that later favoured him in promoting the product.

4 0
3 years ago
Jason bought a new truck at $25,000. The truck depreciates 15% of its value each year. How much is it worth after 5 years
sergiy2304 [10]

Answer:

I think the answer would be $18,750

Explanation:

8 0
3 years ago
A work-at-home opportunity is available in which you will receive 2 percent of the sales for customers you refer to the company.
olga55 [171]

Answer:

$37,500

Explanation:

You receive 2% of the sales.

You have to earn $750 to break even, or cover the franchise cost.

So, if we let Sales be "x", we can say:

<u><em>2% of x would be 750</em></u>

What is 2% in decimal?? We divide by 100, so we have:

2% = 2/100 = 0.02

Now, we convert the word equation above to mathematical equation:

0.02 * x = 750

Now, we solve for x, the amount customers have to buy (or sales):

0.02*x=750\\x=\frac{750}{0.02}\\x=37,500

Hence,

Customers would have to buy $37,500 to cover the cost of this fee.

6 0
4 years ago
If both supply and demand increase at the same time, then __________
Lelechka [254]

Answer:

A

Explanation:

the price of product will increase

7 0
3 years ago
Feldspar, Inc. started the year with 200 units in the Finished Goods Inventory account. It produced 600 units during the year an
Ivanshal [37]

Answer:

A. its operating income for the period will be higher than under absorption costing

Explanation:

As we know that

Under absorption costing, the fixed cost is divided on the number of units produced

And under the variable costing, the fixed cost is considered as a cost selling of goods so the absorption costing method will be lower than the value of finished goods.

As per the question, the started finished goods will help and sell the whole production and starting balance that means under absorption costing of goods which is to be sold is much than variable costing.

3 0
3 years ago
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