The reduction and removal of trade barriers.
Answer:
The right answer is $50,000
Explanation:
Simply put, adjusted basis is the cost of an object after factors that affects the cost has being considered. These factors usually include taxes, depreciation value and any other cost incurred in getting and retaining the said object. Adjusted basis is important so as to know the right amount to sell.
Adjusted basis increases when an individual factors the cost incurred from taxes and maintenance ad it reduces when he/she factors in depreciation.
In the case of Koch, he already exchanged his machine for another at $50,000, as far as he is concerned at that moment, the adjusted basis is $50,000 because it was exchanged in a fair market.
Answer : Premium Pricing.
Companies manufacturing or selling designer apparel, custom jewellery or exclusive paintings usually have a unique brand. These companies usually have their own signature brands that have a big competitive advantage. Hence they charge higher prices.
Answer:
The answer is:
Inelastic
Elastic
Explanation:
Nita’s demand for Coca-Cola will be relatively more inelastic i.e his demand will not be sensitive to price. Increasing the price of Coca-cola will not make Nita to change its taste because he is a devoted Coca-Cola consumer.
Becky’s demand will be relatively more elastic because he has an option to choose between Pepsi and Coca-cola.
Any increase in price of Coca-cola will make Becky to shift to Pepsi.
Answer:
50.0%
Explanation:
The computation of the information ratio is as follows
Information ratio = Alpha ÷ residual standard deviation
where,
Alpha is
= Average rate of return - required rate of return
The average rate of return is 18%
And the required rate of return is
= Risk-free rate + Beta × (Market rate of return - Risk-free rate)
= 7% + 1.25 × (15% - 7%)
= 17%
So, the alpha is
= 18% - 17%
= 1%
Therefore the information ratio is
= 1% ÷ 2%
= 50.0%
