Answer:
b. −1,002.5
Explanation:
economic profit = accounting profit - opportunity costs
- accounting profit = revenue - maintenance and insurance = $96,000 - $30,240 = $65,760
- opportunity costs = the lost salary as a computer programmer + money he could earn by selling the land lot and investing = $48,000 + ($395,000 x 4.75%) = $66,762.50
economic annual profit = $65,760 - $66,762.50 = -$1,002.50
Answer:
Option A. The two-way flow of communication between a buyer and seller, often in a face-to-face encounter, designed to influence a person’s or group’s purchase decision.
Explanation:
The reason is that the personal selling is the face to face selling which means two way flow of communication is necessary. The seller will use his marketing exprience to influence the buyer which results in greater sales and customer satisfaction. So it is the face to face selling method which most of the companies opt and this way of selling is known as personal selling.
Answer:
b. 5.27%
Explanation:
First, find the PV of the bond today. With a financial calculator, input the following and adjust the variables to semi-annual basis;
Face value; FV = 1000
Maturity of bond; N = 15*2 = 30
Semiannual coupon payment = (8.75%/2)*1000 = 43.75
Semi annual interest rate; I/Y = 3.25%
then compute Price; CPT PV= 1,213.547
Next, with the PV , compute the yield to call (I/Y) given 6 years;
Maturity of bond; N = 6*2 = 12
Semiannual coupon payment = (8.75%/2)*1000 = 43.75
Price; PV= -1,213.547
Face value; FV = 1,050
then compute Semiannual interest rate; CPT I/Y = 2.636%
Convert the semiannual rate to annual yield to call = 2.636*2 = 5.27%
The answer is “insurance policies”
