Answer: A. interest rates have risen
Explanation:
Since the customer buys a Brokered CD for $100,000 and upon eceipt of his next account statement, he sees that there has been a reduction in the market value of the CD to $99,800.
This would occur because there has been an increase in the interest rates. On the other hand, assuming there was a reduction in the interest rate, this will lead to an increase in the market value.
The strategy that they use is <span>signaling value by targeting sophisticated buyers
This type of strategy could only work if the target market has specific preferences.
Even though the number of potential consumers for this market tend to be considerably small compared to another market, but the customers that obtained through this strategy tend to show higher level of loyalty.</span>
Answer:
The summary as per the given query is summarized in the explanation section below..
Explanation:
The given values are:
The nominal rate of return,
= 7%
i.e.,
= 0.07
Inflation,
= 4%
i.e.,
= 0.04
- Lengthy-term inflation would lessen the return on investment that lowers the net return as long-term investments are made.
- It can also aim to obtain a higher return that will comfortably exceed the rate of inflation and therefore is beneficial towards diminishing the average return.
Now,
The rate of return will be:
= 
On substituting the values, we get
= 
= 
= 
= 
Therefore it isn't able to measure the average return rate because the quantity of years for its expenditure.
Answer:
The weighted-average unit contribution margin for Concord is $70.50
Explanation:
For computing the weighted-average unit contribution margin , first we have to compute the contribution margin which is shown below:
Contribution margin per unit = Selling price per unit - Variable expense per unit
For Q- drive, it will be
= $90 - $30
= $60 per unit
And, for Q-drive plus,
= $135 - $60
= $75 per unit
Now the weighted-average unit contribution margin equal to
= Weighted sales mix × contribution margin + Weighted sales mix × contribution margin
= 30% ×$60 + 70% × $75
= $18 + $52.50
=$70.50 per unit
