Answer: The correct answer is LONG; LONG
Explanation: A long position means the holder of the position owns the stock. A long position in a financial insteument means the holder of the position owns a positive amount of the instrument and has the expectation of an increase in value.
A short position refers to when the seller of the financial instrument does not own it.
Answer:
824.28
Explanation:
Market price of a bond is the total sum of discounted coupon cashflow and par value at maturity. This is a 4-year bond with semi-annual payment so there will be 8 coupon payment in total. Let formulate the bond price as below:
Bond price = [(Coupon rate/2) x Par]/(1 + Required return/2) + [(Coupon rate/2) x Par]/(1 + Required return/2)^2 + ... + [(Coupon rate/2) x Par + Par]/(1 + Required return/2)^8
Putting all the number together, we have
Bond price = [(4.5%) x 1000]/(1 + 7.5%) + [(4.5%) x 1000]/(1 + 7.5%)^2 + ... + [(4.5%) x 1000 + 1000]/(1 + 7.5%)^8
= 824.28
Available Options are:
A) comprehension
B) conviction
C) ordering
D) reordering
E) awareness-building
Answer:
Option E. Awareness-building
Explanation:
The reason is that the main purpose of the advertisement and the publicity of the product is to increase the interest of the customer by portraying the product as a masterpiece. Furthermore, under the AIDA Model, it is the second stage which is:
Stage 1: A is for Attention
Stage 2: I is for Interest Development
Stage 3: D is for Desire Generation
Stage 4: A is Action (Purchasing the product)
So advertising is basically the second stage.
Answer:
The answer is given below;
Explanation:
Legal Expenses Dr.$9,000
Patent (40,000+2,500) Dr.$42,500
Advertising Expense Dr.$80,000
Cash Cr.$131,500
Please note that legal and other fees for transfer of patent is capitalized in patent cost.
The compound entry is made to simplify the T-Account of cash as the second impact of every debit entry is cash.