Answer:
D.
Municipal bond because the equivalent taxable yield is 6.6%
Explanation:
we should make the important difference that municipal bonds are tax free while corporate bonds don't.
Therefore we should solve for the after tax rate fo the corporate bond:
The corporate bond as a yield of 4.5% after taxes which is lower than the municipal bond. This make it more attractive
We can also solve for the pre-tax rate of the municipal bond:
the municipal bonds would be equivalent to a 6.6% corporate bonds.
This makes option D correct.
Answer:
$0.35
Explanation:
The computation of the price elasticity of demand using mid point formula is shown below:
= (change in quantity demanded ÷ average of quantity demanded) ÷ (percentage change in price ÷ average of price)
So, Change in quantity demanded would be
= Q2 - Q1
= 40 - 30
= 10
Now, Average of quantity demanded
= (40 + 30) ÷ 2
= 35
Change in price
= P2 - P1
= $35 - $15
= $20
And, the average of price would be
= ($35 + $15) ÷ 2
= $25
Cross price elasticity of demand = (10 ÷ 35) ÷ ($20 ÷ $25)
= 0.28 ÷ $0.8
= $0.35
Answer:
When companies hire celebrities to advertise their products, they are attempting to make the demand for their product higher / more profitable. If this strategy is successful, the firm can raise both awareness and reputation / sales.
Explanation:
"Celebrity endorsement is a promotional tool that boosts brand awareness. It is a way of enhancing credibility and gaining visibility for brands. Celebrities are well-known people and a celebrity endorsement can make a brand stand out"
Reference: Elkins, Hashaw. “The Effect of Celebrities in Advertisements.” Small Business - Chron.com, 29 Mar. 2019
Answer:
Gains from remeasuring a foreign subsidiary’s financial statements from the local currency, which is not the functional currency, into the parent company’s currency should be reported as a(n):_______
d. Part of continuing operations.
Explanation:
Gains from the remeasurement of a subsidiary's financial statements from the local currency to the parent company's currency should be reported as part of the continuing operations. It forms part of the current income. They are not deferred. It is translation adjustments that are reported as other comprehensive income, not gains from remeasurement. Remeasurement gains from a subsidiary's local currency to the parent's are also not extraordinary items.
Answer:
a. sharing information across the organization
Explanation:
A franchise is an organisation that is authorised to use the brand of another to conduct business. The parent company provides support such as information about the brand and their business activity, and training to the franchise.
In the given scenario Mary Grey was surprised to find customers asking for specials she hadn't been informed of in advance.
This is a failure in the function of sharing information across the organisation.
Ideally information.on products and various campaigns should be first communicated to the franchises before they get to the customer
