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3 years ago

Classify the customer buying motive as rational or emotional.

Business

2 answers:

Sav [38]3 years ago

8 0

Answer:

Emotional because joining such a club wont benefit him economically, only his prestige

4vir4ik [10]3 years ago

7 0

This is emotional because they are doing it just because it is something they want

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Semenov [28]

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Extranet is a type of a website where control over information is given to the company's partners.
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3 years ago

A conventional cash flow pattern associated with capital investment projects consists of an initial outflow followed by:______.

Travka [436]

A conventional cash flow pattern associated with capital investment projects consists of an initial outflow followed by a number of inflows over a period of time.

Investing is dedicating an asset to obtain an increase in cost over a time period. Making funding calls for sacrificing your contemporary assets including time, cash, and effort. In finance, the cause of investment is to generate and make the most of the assets invested

An investment is an asset or item bought for income or capital appreciation. Valuation refers back to the boom in the value of an asset over time. while a person purchases a very good as an funding, the intention isn't to devour the good, however, to use it to create wealth inside the destiny.

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4 0

2 years ago

Bridget, a single taxpayer, sold a building used in her business during the current year. The realized gain on the sale was $135

Marysya12 [62]

Answer:

$95,000 will be taxed at 25% and $40,000 will be taxed at 15%

Explanation:

(See attachment below for Long-term capital gains tax rate)

Depending on income and marital status, the long-term capital gains tax rates are 0%, 15% and 20% respectively.

Bridget is single and her realised gain is $135,000

Out of which $95,000 is unrecaptured Section 1250 gain.

The capital gain attracts 15%

(See attachment below)

The capital gain is calculated as

$135,000 - $95,000 = $40,000

The $95,000 will be taxed at 25% under the unrecaptured Section 1250 gain.

3 0

3 years ago

Suppose that you have the option to buy the car with a 3 year car loan or lease the car during the same period of time. The 3 ye

Len [333]

Missing Question Data:

The question was missing the total amount of loan taken. I have found the question online and the missing data is added below.

Explanation:

DATA:

Car Loan = $15000

Interest Rate (annual) = 7% = 0.07

Interest Rate (monthly) = 0.07/12 = 0.00583

Loan Life = 3 years

Period (monthly) = 3*12 = 36

Investment Rate (annual) = 4% = 0.04

Investment Rate (monthly) = 0.04/12 = 0.00333

Salvage value after 3 years (PV of Salvage Value) = $5000

Lease Down Payment = $3000

Lease Monthly Payment = $350

<h3>First, we consider the option of Buying on Loan</h3>

Car Loan - Salvage Value(PV) = 15000-5000

Car Loan - Salvage Value(PV) = $10000

<h3>For the option of Leasing the Car</h3>

Sum of monthly lease payments for the total period will be,

Sum of Installments (FV) = 350 * 12 = $12600

We know that,

$PV\;=\;\frac{FV}{(1\;+\;r)^{n}}\;\;\;\;\;\;\;\;\;\;\;\;\;\;\;\;\;\;\;\;\;\;\;\;\;\;\;\;\;\;\;\;\;\;\;\;\;\;\;\;(here\;n\;=\;4\%\;=\;0.00333)$

Sum of Installments (PV) = $\frac{12600}{(1\;+\;0.00333)^{36}}$

Sum of Installments (PV) = $11178.76

Total Lease Payment = Down Payment + Sum of Installments (PV)

Total Lease Payment = $3000 + $ 11178.76

Total Lease Payment = $14178.76

As we can see that total investment for Loan option is lower than that of Lease option, hence taking Loan is the best choice.

3 0

3 years ago

Malmentier SA stock is currently priced at $85, and it does not pay dividends. The instantaneous risk-free rate of return is 5%.

Annette [7]

Answer:

you should hold <u>76</u> shares of stock per 100 put options to hedge your risk.

Explanation:

Current stock price, S = $85

Risk-free rate of return, r = 5%

Standard Deviation, v = 25%

Exercise price, X = $90

expiration date, t (in years) = 30 days = 1 month = 1/12 = 0.083333 years

The option price (OP) is given by the formula:

$OP = Xe^{-rt} * N(-d_{2} ) - S*N(-d_1)$

$d_1 = [ln(S/X) + (r + v^{2} /2)t]/vt^{0.5}\\d_1 = [ln(85/90) + (0.05 + 0.25^{2} /2)*0.08333]/(0.25*0.08333^{0.5})\\d_1 = -0.6982$

$d_2 = d_1 - (vt^{0.5})\\d_2 = -0.6982 - (0.25*0.08333^{0.5})\\d_2 = -0.7704$

Using the pro-metric calculator for the cumulative normal distribution:

N(-d1) = N(- (-0.6982)) = N(0.6982) = 0.75747

N(-d2) = N(-(-0.7704)) = N(0.7704) = 0.77947

$OP = Xe^{-rt} * N(-d_{2} ) - S*N(-d_1)$

$OP =[ 90e^{(-0.05*0.08333)} * 0.77947] - (85*0.75747)\\OP = 5.48$

Note that N(-d₁) = 0.76

This means that 76/100 (i.e to hedge your risk, you should hold 76 per 100 put options )

8 0

3 years ago