1. Dealer incentive is defined as the factory-to-dealer cost which is being reduced to buy the vehicle from the company.
2. The reason they offer these is to help a slow selling model or brand of vehicle basically saying they do this to try to boost the hype for the vehicle and hopefully the incentives will make the model sell faster.
3. The main motive behind dealer incentives is to give the dealers a low price for stocking the companies products.
4. The main reason car manufacturers offer incentives is to help boost sales of slow-moving models.
In order to disguise the fact the car isn't selling well, some manufactures prefer giving incentives via "hidden" avenues, such as dealer incentives and low APR financing. Sometimes car incentives are provided merely as a competitive tool and not necessarily to help sell slow-moving models.
A final reason car incentives are used is to clear out year-end vehicles to make room for next year's models.
Answer:
Investment decisions must be made in accordance with the prudent investor rule
.
The Uniform Prudent Investor Act of 1994 displays the rules. Speculative positions are forbidden. Margin Trading is authorized only if allowed by beneficiary of account. Fiduciaries can charge reasonable fees for their service but may not be compensated as a share of profits.
Explanation:
Answer:
B) the uneven distribution of gains and losses from free trade.
Explanation:
One of the most important reasons why governments impose trade barriers is to protect domestic jobs (and domestic industries). We are part of a society (country), and society's most important component is people, not money. Generally the economic gains of free trade are larger than the economic losses, but the economic losses hurt the most.
Imagine if no trade barriers actually existed, how many millions of jobs would be lost in the US. Trade barriers are nothing new, the current president didn't invent them. He just incinerated them.
How does a leader tell the people that 10 or 20 million must lose their jobs and probably will not be able to find any similar jobs in the future just because the rest of society will benefit from cheaper products. The lives of 20 million households (50-80 million people) would be destroyed, while 280 million people would benefit.
The amount of harm done to the people that lose their jobs is much greater than any individual benefit.
Answer:
The maximum price that a prudent investor would be willing to pay for a share of Valorous stock today is $37.92
Explanation:
In order to calculate the maximum price that a prudent investor would be willing to pay for a share of Valorous stock today we would have to use the following formula:
Current price=future dividends*present value of discount factor(8%, time period)
Therefore, current price= $40/1.08^2 + $2.35/1.08^2 + $1.75/1.08 =
current price=$34.29+$2,01+$1,62
current price=$37.92
The maximum price that a prudent investor would be willing to pay for a share of Valorous stock today is $37.92
Answer:
Pre-tax Cost of debt 7.35%
After-tax Cost of debt 4.78%
Explanation:
We will calculate the cost of debt which is the rate at which the present value of the coupon payment and maturirty matches with the market value.
Coupon payment =100 x 8% / 2 = 4
Face value= 100
market Value = P= 106
n= total payment = 14 years x 2 payment per year = 28
YTM = 3.6754508%
As this rate will be semiannually we multiply by 2
3.6754508 x 2 = 7.3509015 = 7.35%
Then we calcualte the cost of debt after tax:
pretax (1-t)
7.35 (1-.35) = 7.35(0.65) =4,7775 = 4.78%
