Answer:
Advantages of buying business premises
There are considerable advantages to securing a mortgage to buy business premises, including:
- your mortgage repayment is likely to be similar to or less than a rental payment on the same property
- with a fixed rate mortgage, your monthly repayments will be predictable
- you aren't exposed to any sudden, large rent increases
- you may be able to sublet any free space, reducing your monthly repayments (you may require permission from your lender to do so) and allowing you to generate extra income
- interest payments on a commercial mortgage are tax-deductible
- any gain in value of the property will increase your capital
- as your business grows, you may be able to extend your existing premises, avoiding relocation costs
- you have control over what alterations you want to make to your office space
Disadvantages of buying business premises
The disadvantages of buying business premises include the following:
- Unlike renting, you'll need to come up with a substantial mortgage deposit - this is money that might be used for more important business purposes.
- If you own premises, you may find it harder to relocate your business, because selling business premises is a complex and sometimes lengthy process. If you rent, you may be able to negotiate to end your rental agreement, or to find another organisation to take over your tenancy at short-notice.
- If you have a variable rate mortgage, you are exposed to increases in interest rates.
- Owning a property means you'll be responsible for factors such as maintenance, fixtures and fittings, insurance, decoration and security, which can prove expensive.
- Repaying a commercial mortgage
- Commercial mortgage fees and costs
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Explanation:
Answer:
C) Central banks finance large government budget deficits
Explanation:
Hyperinflation is when general price level rise at accelerating high rates. This leads to loss in real value of currency, people tend to substitute it by other stable currency holdings.
An important cause of Hyperinflation is Deficit Financing. This means government generating funds, by bank issuing (printing) new currency. It is done to cover the deficit, the excess of government expenses over its revenues.
Increase in currency money supply, by borrowing from central bank - raises Aggregate Demand & general price level at a very rapid rate, i.e Hyperinflation
Customer value proposition refers to the assortment of buyer-specific benefits that a seller provides to a buyer when selling a product.
More about the Customer value proposition:
A customer value proposition (CVP) in marketing is the total of the advantages a vendor guarantees a customer will receive in exchange for the related payment (or other value-transfer).
A company can create value in their product or service while marketing to potential customers by using a customer value proposition. This is frequently determined by totaling the benefits that vendors offer to their customers.
Similar to the USP, this is a succinct claim intended to persuade buyers that a specific good or service will be more valuable or better able to address their issue than those offered by competitors.
Learn more about the Customer value proposition:
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Answer:
the required rate of return on the stock is 12.52%
Explanation:
The computation of the required rate of return on the stock is shown below:
= (Next year Dividend ÷ current stock price ) + growth rate
= ($1.68 ÷ $ 22.35 ) + 0.05
= 0.075 + 0.05
= 12.52%
Hence, the required rate of return on the stock is 12.52%
We simply applied the above formula so that the correct value could come
And, the same is to be considered
