Answer:
b. Recovery paradox
Explanation:
Based on the scenario being described within the question it can be said that the florist is responding to the Service recovery paradox. This is a situation in which customers place companies on a higher pedestal after they solve a problem that the customer has had with their product or service. Which is what has happened in this scenario as the customers were extremely pleased with the company's service after they corrected the previous missed delivery.
Investors for invest in cash due to its insufficient value
Answer:
option (b) 3
Explanation:
Data provided in the question:
AC = 2Q + 3,
MC = 4Q + 3
Here,
Q represents the firm's output in units
and costs are measured in dollars
Market price = $15
Now,
At the condition of profit-maximizing
Market price = MC
or
⇒ $15 = 4Q + 3
or
⇒ $15 - $3 = 4Q
or
⇒ 4Q = $12
or
⇒ Q = 3 units
Hence,
The answer is option (b) 3
Answer:
The question is missing some details,however find the complete question with the underlined figures being the missing ones below:
Assume that short-term rate, r1 = 6%, and that the expected market rates
<u>E(r 12 ) = 7 % and E(r 23 )</u> = 9 % . Also assume that the unbiased expectations theory holds such that the forward rates are identical to expected spot rates.
a. What should be the current price of a 3-year, $1000 bond with a 12% coupon rate? Assume annual coupon payments.
b. What is the yield-to-maturity for this bond?
a.The current price of the bond is $ 1,082.87
b.The yield to maturity is 8.74%
Explanation:
Find detailed computations of the bond price and yield to maturity in the spreadsheet attached.
Please note that in calculating the present of the bond i.e current price ,the rate changes from year to year as given in the question.
