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4 years ago

3. High-end pricing depends on the customer having which of the following perceptions?

Business

1 answer:

djyliett [7]4 years ago

5 0

<h2>More expensive products are better</h2>

Explanation:

According to psychological theory, whenever a customer sees a branded item, the next immediate thing that comes to his/her mind is the price and quality.

According to the customers point of view, a branded item will possess a good quality but the cost will be little higher when compared to the non-branded items.

So higher the price, customer feels that higher the quality.

All the other options feel right sometime but option 1 is the right answer.

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JKL has 3 million shares of common stock outstanding and 80,000 bonds outstanding. The bonds pay semi-annual coupons at an annua

mylen [45]

Answer:

54.48%

Explanation:

The computation of the weight of equity is given below;

But before that we need to do the following calculations

Total Equity

= 3 million shares × $30

= $90 million

The Value of Debt,

Total Debt = 80,000 (1,000)(0.94)

= $75.2 million

Now the weight of equity is

= $90 million ÷ ($90 million + $75.2 million)

= 54.48%

8 0

3 years ago

Luis is an accountant whose company recently switched from process costing to job order costing. He is preparing to total manufa

Ann [662]

Answer:

The correct answer is Assign costs of work process.

Explanation:

Among the main changes to be able to allocate costs, Julio must take the costs of work in process in a single account, instead of directly to different department accounts. This will ensure better control of the information, avoiding mistakes in the planning process.

4 0

3 years ago

C has a $100,000 traditional whole life insurance policy with a $30,000 cash surrender value. He applies for and receives a $10,

Ivenika [448]

Answer:

If C were disabled, his beneficiaries would receive $70,000, less any outstanding interest charges

Explanation:

Policy loans can generally amount up to 100% of the cash surrender value of the policy, in this case C only requested $10,000 (1/3 of the cash value). This type of loan is fully collateralized by the cash value of the policy and the borrower can even miss some payments or pay on a later date because interests keep adding.

This type of loan can carry a fixed or variable interest rate, depends on the insurer.

If C surrenders his policy, he will receive the total cash surrender value minus the loan amount = $30,000 - $10,000 = $20,000

If C dies, his beneficiaries would receive the full benefits minus the loan amount = $100,000 - $10,000 = $90,000

3 0

3 years ago

The price elasticity of demand measures how much

Sliva [168]

Answer:

a. quantity demanded responds to a change in price.

Explanation:

The price elasticity of demand measures the sensitivity of the quantity demanded to changes in the price. Demand is inelastic if it does not respond much to price changes, and elastic if demand changes a lot when the price changes.

8 0

3 years ago

An insurance company must pay liabilities of 99 at the end of one year, 102 at the end of two years and 100 at the end of three

ale4655 [162]

Answer:

The correct answer is option (a) 0.8807

Explanation:

Solution

Given that:

We start from the liability of bond in 3 years.

Thus, the $100 liability can be an offset by Bond C.

The cash flow of Bond C and the payment of final coupon in year 3 is given as:

100 + (5%*100) = 105

Now,

the number of Bond C which will offset a liability of $100 which is = 100/105 = 0.9524 (All cash flows of Bond C is multiplied by this)

So, the remaining liability becomes

Time Liabilities cash flow Cash flow from Bond C Remaining liabilities

1 99 4.76 94.24

2 102 4.76 97.24

3 100 100.00

Thus,

The year 2 liability offset is $97.24

For Bond B, this can be the offset which contains a cash flow of $100 (which is a zero coupon bond)

The Bond number which are required for this offset is = 97.24/100 =0.974

The remaining cash flow is computed as follows:

Time = 1 ,2, 3

Liabilities cash flow = 99, 102, 100

Cash flow from Bond C =4.76, 4.76. 100.00

Remaining liabilities = 94.24, 97.24

Cash flow from Bond B = 0, 97.24

Remaining liabilities = 97.24

What this suggest is that The Bond A has to offset at approximately $94.24 in year 1.

The Cash flow from Bond A = 100 + (7%*100) = 107

Hence,

The number of Bond A's needed = 94.24/107 = 0.8807

8 0

3 years ago