Answer:
The answers are:
A) 4.23 years
B) 1.08 years
C) Off course I would recommend Dave and Ellen to install these safety items, not only because they save money but also because they are very useful.
Explanation:
The cost of the deadlocks including installation is $110 for each exterior door ($220 total). The cost for installing smoke detectors is $24 for each floor ($48 total).
The discount that Dave and Ellen can get is
- $52 per year for installing the deadlocks
- $26 per year for installing the smoke detectors
A) It will take Dave and Ellen 4.23 years ($220/$52) to recover the money spent on the deadlocks.
B) It will take Dave and Ellen 1.08 years ("26/$24) to recover the money spent on the smoke detectors.
Answer:
To compensate for the risk that they will receive less than promised if the firm defaults, investors demand a lower interest rate than the rate on U.S. Treasuries.
Explanation:
Investors are risk averse, this means that they will always prefer those investments with lower risks. Since US treasuries are considered the safest investments, they are used to calculate the risk free rate.
When investors invest in other securities (not US government) they will always demand a higher return because a private entity or even a state or local government can default on a their debt. That difference between the return yielded by a US security and the return from any other investment is called the risk premium.
Answer:
- Write clearly and concisely
- Use a font, size, and style that is suitable
- Eliminate mistakes.
- Remain polite even when dealing with a dispute
Explanation:
Business letters are meant to use formal language because they are to serve as official communication between the parties involved. As such, writing should be clear and concise which means it should be straight to the point.
Use a font, size and style that is suitable and will be taken seriously for instance, Times New Roman and Arial are widely used as they project professionalism. There should be no mistakes which means the letter should be proofread and even when dealing with disputes, politeness should be maintained as emotive writing is not to be featured in formal writing.
Answer:
C. Shareholders and providers of finance
Explanation:
A company's financial report communicates the financial health of a business. It indicates whether a business is profitable and can meet its financial obligations.
Shareholders are the owners of a business. They are interested in the financial reports to know if their venture is making profits. Shareholders expect to earn dividends from the business. Only a profitable business is able to declare dividends. Financial reports guide shareholders in making decisions regarding the future of the business.
Lenders provide debt capital to a business. If the company is profitable, then lenders are happy because their payments are assured. Lenders rely on financial reports in deciding whether to extend or deny credit to businesses.
Answer: C. purchase of EFGH separately; and the sale of ABCD separately
Explanation: