Answer:
9%
Explanation:
The first step is to understand the relevant terms in the question
Average Cost of New Capital
The cost of capital represents a required return rate (in percentage) an organisation or an individual ( in the case of John) will need to make a capital project advantageous, worthwhile or profitable.
In the case of John, the Average Cost of New Capital is 9%
MARR - Minimum Acceptable Rate of Return
This rate also in percentage represents the lowest or minimum rate of return a business or an individual is able to accept in order to start a given project. It is usually based on the risk of the project as well as the alternate benefit foregone if other projects were accepted.
It is also called the Hurdle rate, or the cutoff rate.
John's MARR is 18%
Based on these,
John's Net rate of return is calculated as follows
Minimum Acceptable Rate of Return - Average Cost of the New Capital
= 18% - 9% = 9%
Answer:
Loan protection insurance is designed to help policyholders by providing financial support in time of need. Whether the need is due to disability or unemployment, this insurance can help cover monthly loan payments and protect the insured from default.
Explanation:
Average cost is calculated in the following way
Explanation:
Given that XO Group Inc. conducted a survey of 13,000 brides and grooms married in the United States and found that the average cost of a wedding is $29,858
X is N(29,858, 5600)
Or Z=x-29158/5600 is N*(0,1)
We can use std normal distribution table to get the probabilities
a) The probability that a wedding costs less than $20,000 (to 4 decimals)
P(X<20000)
=0.039174
=0.0392
b) the probability that a wedding costs between $20,000 and $30,000
=0.5101-0.0392
=0.4709
c) For a wedding to be among the 5% most expensive, how much would it have to cost (to the nearest whole number)
=29858+1.645*5600
=38083
Answer:
C)Direct marketing is the correct answer.
Explanation:
The promotional method in which the information of company, product or survive is promoted directly to the customer without the use of advertising middleman is called direct marketing. In this method potential interest is presented to a consumer that is a likely buyer. Various of direct marketing are catalogues, fliers, Newsletters, phone calls etc. Although some marketing techniques aim to educate about company's products but the direct marketing aims to persuade people to take action, getting the sale is the ultimate goal.
