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likoan [24]
3 years ago
11

A complex product that is best described in writing will be difficult to explain to consumers who are unable to read. For this r

eason, a segment in which many consumers could not read would be considered unattractive because the consumers would not be responsive.
Business
1 answer:
Leviafan [203]3 years ago
6 0

<u>Answer: </u>False

<u>Explanation:</u>

To make the consumers understand the product the companies can choose different type of communication channel. Communication channel used can  be video for people who are unable to read the instructions of the complex products.

The reason for not choosing the segment cannot be the reading ability of the customers. Most of the new technological products are complex products but the users understand the usability by seeing or watching them. So these markets cannot be considered as unattractive markets.

You might be interested in
In analyzing the value of the firm as a function of capital structure, the present value of the tax shield benefit is offset by
Hoochie [10]

Answer:

The correct answer to the following question will be Option D (Financial distress and agency costs).

Explanation:

  • A cost of an agency is a form of company's internal expense that comes from an employee working on behalf of action of the principle. Agency costs usually occur from core redundancies, confusion, and delays, such as shareholder and management conflicts of interest.
  • Distress expense applies to the expenses that a financially distressed company faces beyond the business cost, such as increased capital expenses. Troubled companies tend to have a tougher time fulfilling their financial responsibilities, which turns into a higher chance of default.
  • When evaluating the company's value as a feature of market structure, the present value of the tax shield gain is balanced by the current value of the anticipated financial distress and agency expenses, which results in an ideal internal market structure.

Therefore, Option C is the right answer.

5 0
2 years ago
Which results are more likely for someone without personal finance skills? Select three options.
KiRa [710]

Answer:

larger long-term credit or loan costs

less preparation for emergencies

increased long-term challenges

Explanation:

Personal finance involves planning and managing individual or family financial activities such as income generation, saving, spending, insurance, and investments. The process of managing personal finance is through budgeting and the development of a  financial plan.

Personal finance can be done by oneself or with the help of a personal financial manager. The objective is to help one meet both their short term and long term financial goals. Personal finance planning assists one meet expected future expenditures such as retirement while preparing them for unforeseen emergencies.

4 0
3 years ago
Read 2 more answers
The market value of​ Fords' equity, preferred​ stock, and debt are $ 7 ​billion, $ 2 ​billion, and $ 13 ​billion, respectively.
steposvetlana [31]

Answer:

WACC is 9%

Explanation:

WACC is the average cost of capital of the firm based on the weightage of the debt and weightage of the equity multiplied to their respective costs.

According to WACC formula

WACC = ( Cost of equity x Weightage of equity ) + ( Cost of debt ( 1- t) x Weightage of debt ) + ( Cost of Preferred equity x Weightage of Preferred equity )

As per given data

Market Values

Equity = $7 ​billion,

Preferred​ stock = $2 ​billion

Debt = $13 ​billion

Cost

Equity

Capital asset pricing model measure the expected return on an asset or investment. it is considered as the cost of common stock.

Formula for CAPM

Cost of Equity = Risk free rate + beta ( market return - risk free rate )

Cost of Equity = Rf + β ( Mrp )

Cost of Equity = 3% + 1.6 ( 8% ) = 15.8%

Preferred​ stock = $2 / $26 = 0.077 = 7.7%

Debt = 8%

Placing values in the formula

WACC = ( 15.8% x $7 billion / $22 billion ) + ( 8% ( 1- 0.3) x $13 billion / $22 billion ) + ( 7.7% x $2 billion / $22 billion )

WACC = 5.03% + 3.31% + 0.7% = 9.04%

7 0
3 years ago
Which of the following statements are true regarding​ externalities? ​(Check all that apply​.) A. Deadweight loss can be either
ella [17]

Answer:

d

Explanation:

A good has positive externality if the benefits to third parties not involved in production is greater than the cost. an example of an activity that generates positive externality is research and development. Due to the high cost of R & D, they are usually under-produced. Government can encourage the production of activities that generate positive externality by granting subsidies.

A good has negative externality if the costs to third parties not involved in production is greater than the benefits. an example of an activity that generates negative externality is pollution. Pollution can be generated at little or no cost, so they are usually overproduced. Government can discourage the production of activities that generate negative externality by taxation. Taxation increases the cost of production and therefore discourages overproduction. Tax levied on externality is known as Pigouvian tax.

Government can regulate the amount of externality produced by placing an upper limit on the amount of negative externality permissible

Coase theorem has been proposed as a solution to externality. According to this theory, when there are conflicting property rights, bargaining between parties involved can lead to an efficient outcome only if the bargaining cost is low

Another solution to negative externality is through the activities of charities. Charities can raise donations to limit or regulate the activities of firms that constitutes a negative externality.

6 0
3 years ago
Imagine that you invest $100,000 in an account that pays 5.9% annual interest compounded monthly. What will your balance be at t
kodGreya [7K]
The compound interest formula is: A= P(1+ \frac{r}{n} ) ^{nt}
Where:
A is the amount you will have.
P is the money you are investing.
r: is the interest rate (in decimals)
n: number of times the interest is compounded per year
t: time (in years)

The first thing is converting the rate from percentage to decimal: 
\frac{5.9}{100} = 0.059

Since the interest is compounded every month and a year has 12 months n=12.

Now we can replace the values in our formula:
A=100000(1+ \frac{0.059}{12} ) ^{(12)(18)}

We can simplify the exponents to get:
A=100000(1+ \frac{0.059}{12} ) ^{216}

Finally, we can use our calculator to get 288463.33

After 18 your balance in your bank account will be $288463.33
4 0
3 years ago
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