People will buy at places that are cheap and sell at more expensive prices because:
- The transactions costs would be too high.
- There's little resale market for used Big Macs.
- They would be expensive to transport.
- They're perishable.
<h3>What is transactions cost?</h3>
Transactions cost simply mean the expenses that are incurred when one buys or sells a particular product.
In this case, the above options are the reasons why people are unlikely to buy Big Macs in the places where they are relatively cheap according to purchasing power parity.
Learn more about transactions cost on:
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Answer:
You should pay a stock price of $33.33
Explanation:
We can use the formula below to calculate the price per share that you would be willing to pay;
RRR=(EDP/SP)+EDGR
where;
RRR-required rate of return
EDP-expected dividend payments
SP-share price
EDGR-expected dividend growth rate
This can also be written as;
Required rate of return=(Expected dividend payments/share price)+expected dividend growth rate
In our case;
RRR=12%=12/100=0.12
EDP=$2
SP=unknown
EDGR=6%=6/100=0.06
replacing;
0.12=(2/SP)+(0.06)
0.12-0.06=(2/SP)
0.06=(2/SP)
0.06 SP=2
SP=2/0.06
SP=33.33
You should pay a stock price of $33.33
Answer:
B Installment credit
Explanation: An installment credit loan can have a repayment period lasting from months to years until the loan is paid off.
Answer:
Demand
Explanation:
customer-induced variability in finance can be explained as kind of co- creation that exist in customer and the service script.
It should be noted that the five sources of customer-induced variability are;
1)arrival of customers
2) Capability variability
3) effort
4) Request from customer
5) subjective reffrence
The arrival of customers shows what customers have in their own plan.
The capability variability gives the ideal about the strength of the customer concerning the service
Effort describe how willing the customer is, to give their support.
Hence among the given option only demand variability is not one of the five sources of customer-induced variability.
The correct answer is C. Average daily balance method.
In average daily we consider balance interest or owed at the end of the day.
To calculate debt credit card we take the percentage of the total amount of current balance which will be termed as the interest then add one percent of the principal.
T o calculate for daily credit card balance we total the balance in the billing cycle everyday then you will divide your total with the number of days which in the cycle.
