Answer:
To compensate for the risk that they will receive less than promised if the firm defaults, investors demand a lower interest rate than the rate on U.S. Treasuries.
Explanation:
Investors are risk averse, this means that they will always prefer those investments with lower risks. Since US treasuries are considered the safest investments, they are used to calculate the risk free rate.
When investors invest in other securities (not US government) they will always demand a higher return because a private entity or even a state or local government can default on a their debt. That difference between the return yielded by a US security and the return from any other investment is called the risk premium.
When airlines charge higher prices for seats in the Economy section Exit rows that have more leg room, they are using demand oriented pricing strategy.
<h3 /><h3>What is
demand oriented pricing strategy?</h3>
This is a strategy, used by a seller inorder to set the price of a product at a limit within the buying capacity of the targeted consumers.
It is to be noted that demand-oriented attempts to set price at level that intended buyers are willing to pay.
Learn more about demand oriented pricing strategy here: brainly.com/question/25347718
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Dane and the other stockholders will lose their investments but nothing else. Because Dane and others are stockholders in this company, they will lose the money that they had invested in the company and they will no longer receive any dividend from the company again because the company has gone bankrupt. Dane and others are not liable for other debts that had been acquired by the company.
Opportunity cost of going to college is actually the salary forgone.
With a yearly salary of $15,000 and a rent of $12000 yearly (parents would not let you live at home), we are left with $15000 - $12000 = $3000 per year
For 4 years, the opportunity cost will be 4 x $3000 = $12000
For a restaurant, some variable costs could be labor costs/ worker wages, raw product/ purchasing food to cook, and energy and fuel/ utilities.
