Answer:
An economic union
Explanation:
Economic integration can be defined as a strategic trade arrangement between countries to eliminate or mitigate trade barriers, as well as coordinate fiscal and monetary policy among its members.
Trade can be defined as a process which typically involves the buying and selling of goods and services between a producer and the customers (consumers) at a specific period of time. There are different types of market or trade bloc used in economic integration and these includes;
I. Customs union
II. Free trade area
III. Common market
IV. Political union
VI. Economic union
An economic union can be defined as a trade bloc which comprises of both customs union and a common market.
In a common market, there are free movement of the factors of production and no barrier to trade between member countries. Also, a common market establishes a common external trade policy for non-member countries.
However, an economic union entails even closer economic integration and cooperation among member countries than a common market because it combines customs union and a common market.
Answer:
Charles is classified in the adopter category called "Latecomers"
Explanation:
Latecomers are traditional consumers. For them, buying a new product brings a feeling of extreme psychological discomfort. They do not like news, even flee from it, and consider it immature to buy an innovative article in the market.
Latecomers represent 16% of consumers, are insecure to adopt new things, do not like to try new things and do not follow fads. Being traditionalists, they always perform the same way and only adopt innovation when there is no other alternative. Like Charles, who only bought the color TV because his old tv stopped working.
Answer:
a) Pre-tax cost of debt is 8.45%
b) After tax cost of debt is 5.07%
Explanation:
a) Given:
Debt issue outstanding = $15.5 million
Semi-annual coupon rate = 0.063 / 2 = 0.0315
Assumed par value (FV) = $1,000
Coupon payment (pmt) = 0.0315 × 1000 = $31.5
Current bond price (PV) = 92% of $1,000 = $920
Time period (nper) = 5 × 2 = 10 periods
Calculate semi-annual rate using spreadsheet function =Rate(nper,pmt,PV,FV)
Semi-annual rate = 4.14%
Pmt and FV are negative as they are cash outflows.
YTM = 4.14 × 2 = 8.28%
Effective annual rate = 
= 
= 0.0845 or 8.45%
b) Tax rate is 40%
After tax cost of debt = Pre tax cost of debt × (1 - 0.4)
= 0.0845 × 0.6
= 0.0507 or 5.07%
Question Completion:
Choose the correct answer below
(1) in-store customers appear to be middle aged, have higher annual income and live further distance away from a store
(2) in-store customers appear to be generally younger, have lower annual income and live near a store
(3) Online customers appear to be generally younger, have higher annual income and live further distance away from a store
(4) Online customers appear to be middle aged, have lower annual income and live near a store
Answer:
Zeitler's Department Stores
Online and In-store Customers:
According to the parallel coordinates plot, online customers are differentiated from in-store customers in the following ways:
(3) Online customers appear to be generally younger, have higher annual income and live further distance away from a store
Explanation:
Younger persons tend to embrace technology more than their older counterparts. Based on this, they also engage on online purchasing of goods and services instead of visiting the traditional brick-and-mortar stores. With online purchase, a customer is in better control because she can search for the best deals from any location.
Answer:
To make balance sheet we first have to calculate net income/net profit for the year.
<em><u>Net profit Calculation</u></em>
Service revenue $ 13,524
Insurance expense ($ 718
)
Depreciation expense ($ 4,876)
Interest expense ($ 2,392)
Profit $ 5,538
<em><u></u></em>
Balance Sheet
Asset
Non-Current Asset
Land $56,304
Buildings $97,336
Accumulated depreciation—buildings ($41,952)
Equipment $75,808
Accumulated depreciation—equipment ($17,222)
Total non Current Asset $170,274
Current Asset
Cash $10,893
Accounts receivable $11,592
Prepaid insurance $2,944
Current Asset $25,429
Total Asset $195,703
Equity
Common stock $55,200
Retain Earning (36,801+5,538) $42,339
Total Equity $97,539
Liability
Non-Current Liability
Current Liability
Accounts payable $8,740
Notes payable $86,112
Interest payable $3,312
Total Current Liability $98,164
Total Liability + Equity $195,703
