Answer:
E) bait and switch
Explanation:
BAIT AND SWITCH can be defined as a way in which a seller use advert of a low price to deceive and attract customers to their shop in which the products or item advert by seller is not available in order to sell similar or separate product to the customer at a higher price instead of selling the same product with a low price advertised by the seller.
Example a seller may advert a quality Italian shoe with a low price of $50 in order to deceive a buyer or customers to their place of business by then selling a similar product of shoe that looks like the one advertise by them to the customer at a higher price of $300.
Answer: The required return on a stock with a positive beta < 1.0 will decline.
This is the correct answer because when the market risk premium declines
the required return on stocks with any positive beta will decline. The reason for this is that Beta is the sensitivity of the stock to the market premium so if the market premium declines, if the beta is positive the return will decline
Example Capm RR= RF+B(RP)
If the RF= 5%
RP=5%
Beta of stock is 0.5
The required return on the stock will be 0.05+0.5(0.05)=0.075=7.5%
If the RP declines and goes to 2%
Then Required return will be equal to 0.05+0.5(0.02)=0.07=7%
Explanation:
Answer:
A. Owners equity
Explanation:
In a balance sheet, the accounting equation reflects a scenario in which assets are equal to liabilities including owners equity. This is premised on the principle of double entry which is the foundation of accounting.
Owners equity is the amount owned by the business owner or his investment in the business less drawings.eg retained earnings,profits, etc.
The reason for accounting equation is to show that the balance sheet tallies such that items on the debit matches items on the credit
Answer:
Annual depreciation= $16,000
Explanation:
Giving the following information:
Purchase price= $77,000
Useful life= 4 years
Salvage value= $13,000
Under the straight-line method, the depreciation expense remains constant during the life of the asset.
<u>To calculate the depreciation expense, we need to use the following formula:</u>
Annual depreciation= (original cost - salvage value)/estimated life (years)
Annual depreciation= (77,000 - 13,000) / 4
Annual depreciation= $16,000
