The Bohr model gives a more detailed understanding of the movement of the electrons and where they are. Unlike the Rutherford model, where electrons are simply thought of moving around in their spaces.

6 0

4 years ago

Why do infomercials use both strong and weak arguments? to appeal to both high and low involvement consumers because it is neces

Vesna [10]

Answer:

The correct answer is letter "A": to appeal to both high and low involvement consumers.

Explanation:

Strong arguments are those that provide probable support for an idea. Weak arguments fail to provide support for different matters. Then, when talking about marketing, strong arguments are more likely to engage consumers with a product while weak arguments can attract consumers at low levels but the ideas lack reliability.

Thus,<em> infomercials can make use of both strong and weak arguments at different levels of consumer involvement.</em>

4 0

3 years ago

In March 2017, Amazon and Clorox reported nearly identical earnings per share, but the stock price of Amazon was more than six t

adoni [48]

Answer:

c. investors see better long-term prospects for Amazon

Explanation:

As we know that Amazon has the more customer base in the market due to which the shareholder predicted the expected profit in upcoming years. The company could run in long run. Even the ompany suffered huge losses due to discount provided but the investors are ready to invest in this company as they seen there is a better and long term prospects

Therefore according to the given situation, the option c is correct

3 0

3 years ago

Cotton On Ltd. currently has the following capital structure: Debt: $3,500,000 par value of outstanding bond that pays annually

jeka57 [31]

Answer and Explanation:

This question is incomplete. Kindly find the incomplete question here

Ordinary shares: $5,500,000 book value of outstanding ordinary shares. Nominal value of each share is $100. The firm plan just paid a $8.50 dividend per share. The firm is maintaining 4% annual growth rate in dividends, which is expected to continue indefinitely.

Preferred shares: 45,000 outstanding preferred shares with face value of $100, paying fixed dividend rate of 12%

The firm's marginal tax rate is 30%.

Required:

a) Calculate the current price of the corporate bond?

b)Calculate the current price of the ordinary share if the average return of the shares in the same industry is 9%?

c) Calculate the current price of the preferred share if the average return of the shares in the same industry is 10%

The computation is shown below:

a. For the current price of the corporate bond

Before that first we have to determine the after tax yield to maturity i.e

After tax YTM = Before tax YTM × (1 - tax rate)

= 12% × ( 1 - 30%)

= 12% × (1 - 0.3)

= 12% × (0.7)

= 8.4%

Now

Price of bond = Interest × PVIFA(YTM%,n) + Redemption value × PVIF(YTM%,n)

Interest = 1000 × 10% = $100

YTM% = 8.4%

n = 20

PVIFA(YTM%,n) = [1 - (1 ÷ (1 + r)^n ÷ r ]

PVIFA(8.4%,20) = [1 - (1 ÷ (1 + 8.4%)^20 ÷ 8.4%]

= [1 - (1 ÷ (1 + 0.084)^20 ÷ 0.084]

= [1-(1 ÷ (1.084)^20 ÷ 0.084]

= [1 - 0.1993 ÷ 0.084]

= 0.8007 ÷ 0.084

= 9.5327

PVIF(8.4%,20) = 1 ÷ (1 + 8.4%)^20

= 1 ÷ (1.084)^20

= 0.19926

So, the price of bond is

= $100 × 9.5327 + $1000 × 0.19926

= $953.27 + $199.26

= $1,152.52

b)Price of stock = Dividend of next year ÷ (Required rate of return - growth rate )

where,

Growth rate = 4%

Required rate of return = 9%

The Dividend of next year = Dividend paid × (1 + growth rate)

= 8.50 × (1 + 4%)

= 8.50 × (1 + 0.04)

= 8.50 × (1.04)

= $8.84

Thus the price of the stock is

= $8.84 ÷ (9% - 4%)

= $8.84 ÷ 5%

= $176.80

c) Price of preference shares is

= Dividend ÷ Required rate of return

where,

Dividend = 100 × 12% = $12

And, the Required rate of return = 10%

So, the price of preference shares is

= 12 ÷ 10%

= $120

6 0

4 years ago