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3 years ago

A consumer is likely to have a broad search including more brands during an external information search when:

Business

1 answer:

vazorg [7]3 years ago

3 0

Answer:

There is a direct relationship between perceived risk and external research. The higher the perceived risk, the more external research a consumer will carry out. Perceived risk is not simply fearing that you will make a bad purchase, but it also refers to the costs and benefits associated with the purchase.

The higher the benefits that a consumer can obtain from a purchase, the higher the risk of not getting enough benefits if they make a bad choice. E.g. if you have a lot of good choices available, then you will want to do some more research to choose the best one.

Generally consumers include more brands in their search when they are physically in stores. As consumers we generally consider a very limited number of brands when we shop online, but when we are in a store, we tend to broaden our search and include al the brands that we find.

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A company is planning to move to a larger office and is trying to decide if the new office should be owned or leased. Cash flows

skad [1K]

Answer: 13.26%

Explanation:

Year 0 Investment = $385,000

Incremental Cash flow every year = Cashflow if owned - Cashflow if leased

= 164,000 - 133,000

= $31,500

Incremental cashflow in Year 10 = Incremental Cashflow + Cashflow from sale of property

= 31,500 + 750,000

= $781,500

Using Excel and the IRR function, the rate is = 13.26%

5 0

3 years ago

"A registered representative has a long-term client who works in a bank. The representative tells the client that he wants to bu

nirvana33 [79]

Answer:

None

Explanation:

Before a bank decides on which interest rate placed on loans given to customers, it will have to be a general agreement between the board of directors in an Annual General Meeting (A.G.M). Or else stated otherwise which is quite rare, interest rates on loans and mortgages are based on a simultaneous agreement. When an interest rate is to be decided for a certain customer, his or her credit scores are evaluated to ascertain the loanee's ability to pay back the loan. When a loanee's credit scores are low, he or she tends to receive a high interest rate on loans and mortgages while when a loanee's credit scores are high, he or she tends to receive a low interest rate on loans and mortgages.

On the case of the client who works in a bank granting the registered representative a mortgage with lower interest rates, this cannot be possible because: first, the client's position in the bank was not clarified and secondly, the registered representative's credit scores will be the evaluation report used by the bank to grant that.

7 0

3 years ago

The Maurer Company has a long-term debt ratio of .50 and a current ratio of 1.40. Current liabilities are $970, sales are $5,190

bekas [8.4K]

Answer:

$7,210.1065

Explanation:

The computation of net fixed assets is shown below:-

But before that we need to do the following calculations

Current Ratio = Current Assets ÷ Current Liabilities

Current Assets = 1.40 × $970

= $1,358

Profit Margin = Net Income ÷ Sales

= 9.30% = Net income ÷ $5,190

Net income = $5,190 × 9.30%

= $482.67

ROE = Net Income ÷ Shareholders Equity

16.90% = $482.67 ÷ Shareholders Equity

Shareholders Equity = $482.67 ÷ 16.90%

= $2,856.0355

Long-term debt ratio = Long term debt ÷ (Long term debt + Equity)

0.50 = Long term debt ÷ (Long term debt + $2,856.0355)

Long term debt = 0.50 × Long term debt + $2,856.0355

0.5 × Long term debt = $2,856.0355

Long term debt = $2,856.0355 ÷ 0.50

= $5,712.071

Total Assets = long term debt + Equity

= $5,712.071 + $2,856.0355

= $8,568.1065

Now

Total Assets = Current Assets + Fixed Assets

$8,568.1065 = $1,358 + fixed assets

So, the fixed asset is

= $8,568.1065 - $1,358

= $7,210.1065

7 0

3 years ago

Capital requirements for banks serve all of the following purposes EXCEPT:________.a.to offset the change in incentives caused b

SCORPION-xisa [38]

Answer:

b. to reduce deposits

Explanation:

A Capital requirement refers to the amount of capital that a financial institution must have to meet the requirements set by it's financial regulator. All of the answers provided are purposes that this hopes to accomplish except for reducing deposits. It actually hopes to increase deposits which means more customers that are coming in.

3 0

3 years ago

Eric receives a portion of his income from his holdings of interest-bearing U.S. government bonds. The bonds offer a real intere

MArishka [77]

Solution :

Given :

The bonds offer a $\text{real interest rate}$ of 4.5% per year

Tax rate = 10% = 0.10

Inflation rate = 2

$\text{Nominal interest rate}$ = $\text{real interest rate}$ + $\text{inflation rate}$

$\text{Nominal interest rate}$ = 2 + 4.5

= 6.5

$\text{After tax nominal rate}$ = $\text{Nominal interest rate}$ $\times (1-\text{tax rate})$

$\text{After tax nominal interest rate}$ = $6.5 \times (1-0.10)$

$=6.5 \times 0.90$

= 5.85

After tax real interest rate = $\text{after tax nominal rate}$ - $\text{inflation rate}$

= 5.85 - 2.0

= 3.85

$\text{Inflation rate}$ = 7.0

$\text{Real interest rate = 4.5}$

$\text{Nominal interest rate}$ = $\text{real interest rate}$ + $\text{inflation rate}$

= 7 + 4.5

= 11.5

$\text{After tax nominal interest rate}$ = $\text{Nominal interest rate}$ $\times (1-\text{tax rate })$

$=11.5 \times (1 - 0.10)$

$=11.5 \times 0.90$

= 10.35

$\text{After tax nominal interest rate}$ = 11.5 x (1 - 0.10)

= 11.5 x 0.90

= 10.35

$\text{After tax nominal interest rate}$ = $\text{after tax nominal rate}$ - $\text{inflation rate}$

= 10.35 - 7.0

= 3.35

Putting all the value in table :

$\text{Inflation rate}$ Real interest Nominal interest After tax nominal After tax

rate rate interest rate interest rate

2.0 4.5 6.5 5.85 3.85

7.0 4.5 11.5 10.35 3.35

Comparing with the $\text{higher inflation rate}$ , a $\text{lower inflation rate}$ will increase the after after tax real interest rate when the government taxes nominal interest income. This tends to encourage saving, thereby increase the quantity of investment in the economy and the increase the economy's long-run growth rate.

7 0

3 years ago