Answer:
Dealers profit comes from the spread primarily. Spread is the differential amount between buying and selling.
Explanation:
Let us assume the price of security X is USD 100 (last trade price)
A dealer will purchase this security at discounted price from the investor say USD 99 and will sell the same security in the market at USD 100, thus earning spread.
Further being market markers, dealers often use multiple strategies to prop up the price of particular security and earn gains on inventory held.
Answer: 29.4 gallons
Explanation:
The Safety Stock that should be held by the company to have a Service Level of 99.0% will be:
= Z × σ × ✓LT
Z = 2.326
σ = Standard deviation = 8
LT = Lead time = 2.50
Safety stock = = Z × σ × ✓LT
= 2.326 × 8 × ✓2.50
= 2.326 × 8 × 1.58
= 29.4 gallons
The safety stock is 29.4 gallons.
Answer:
The correct answer is letter "A": are rarely worth their face value.
Explanation:
Accounts receivables are notes issued to customers after selling them a product or rendering services on credit. The repayment term may vary from 30, 60 or 90 days. If an account receivable is not paid after that period it could be considered as an uncollectible account which implies the company will incur losses.
<em>Accounts receivable are hardly ever accepted at face value (real value of the moment of the purchase) because companies add the interest rate that is to be charged for the sale on the account.</em>
Answer:
C) Make its demand curve more inelastic
Explanation:
A product is inelastic if the demand for it does not change a lot when price changes. For example, gasoline is a perfect example of a good with inelastic demand because customers buy gasoline even if the price rises.
A firm will always want to have inelastic products because this will assure revenue even if production costs have to be raised, and the sales price therefore increases.
Advertising can achieve that by increasing brand loyalty, product differentiation, or good perception about the product. Customers may feel that no matter how high the price is, the product is worth it.
Answer:
The present value of the annuity is $ 825.02
Explanation:
The present value of the annuity is the today's worth of the thirty annuity payments.
Each of the annuity payment is multiplied by its discount factor,for instance the discount factor for the first payment is computed thus
=$15*(1/(1+6%/12)^1=$14.93
The 6% interest rate is divided by 12 months to show a monthly rate of return find attached.
