Answer: a. always declines with increased levels of output.
Explanation: the average fixed cost curve graphically illustrates or shows the relation between average fixed cost a firm incurs in the short-run production of a good or service, and the quantity produced. The average fixed cost curve always declines with increases in the level of output resulting in a negatively sloped curve. This is to say that the average fixed cost is relatively high at smaller quantities of output, which then declines as the level of production increases--the more output increases, the more average fixed cost declines. Why this occurs is that a given fixed cost is spread over an increasingly larger quantity of output and as such, firms can profitably charge a lower price with increased output.
Answer:
a. What is the expected return of the risky corporate bond over the 5-year holding-period (in %)?
expected return in $ = (50% x 20% x $1,000 x 4) + (50% x 35% x $1,000 x 4) = $400 + $700 = $1,100
holding period return = ($1,100 - $1,000) / $1,000 = 10%
b. What is its effective annual return?
(1 + 10%)⁰°² - 1 = 1.92%
b. What is its effective annual return?
- 2. The government bond is the superior investment
The yield of he corporate bond is very low and the risk is too high.
Answer:
clear and effective strategy comprising
Explanation:
The four Ps make up the marketing mix ,which are product, price, promotion, and place. These four components help determine a clear and effective strategy to bring a product to market. Each element is crucial in its own right and needs to be given due focus .
The product is either a tangible good or an intangible service that is seem to meet a specific customer need or demand. All products follow a logical product life cycle and it is vital for marketers to understand and plan for the various stages and their unique challenges .
Price covers the actual amount the end user is expected to pay for a product. How a product is priced will directly affect how it sells. This is linked to what the perceived value of the product is to the customer rather than an objective costing of the product on offer. If a product is priced higher or lower than its perceived value, then it will not sell. This is why it is imperative to understand how a customer sees what you are selling.
The marketing communication strategies and techniques all fall under the promotion heading. These may include advertising, sales promotions, special offers and public relations.
The place or placement deals with how the product will be provided to the customer. Distribution is a key element of placement. The placement strategy will help assess what channel is the most suited to a product.
Answer:
b) The company will incur a loss
Explanation:
The market rate at the time of issue = 9%, while coupon rate = 8%, it says bonds provide lesser return when compared to the market rate.
At end of year 2 market rate drops to 6% which is lower than the Bond's coupon rate. Which means the bond's providing high return when compared to the market. So, company to retire the bonds need to pay more than the par value.
As company should retire these bonds more than par value, the company incur a loss.
Option 'B is correct
The company incur a loss
Answer:
100%
Explanation:
Let the normal retail price of the sweater be 'SP' and the cost price be 'CP'
Therefore,
The selling price = SP - 40% of SP = SP - 0.4SP = 0.6SP
Now,
the profit = 20% of CP = 0.2CP
also,
Profit = Selling Price - Actual price
or
0.2CP = 0.6SP - CP
or
1.2CP = 0.6SP
Or
CP = 0.5SP
or
SP = 2CP
thus,
Increase percentage in sweater marked up from wholesale at its normal retail price
= 
or
= 
= 100%
