Answer:
True, spiff is the actual word
Explanation:
A spiff, or spiv is slang for an immediate bonus for a sale. Typically, spiffs are paid, either by a manufacturer or employer, directly to a salesperson for selling a specific product.
Answer:
A. $117 million
B.13%
C. $21.75
Explanation:
B. Calculation to determine How large a loss in dollar terms will existing FARO shareholders experience on the announcement date
Expected Loss= 390*30%
Expected Loss= $117 millions
Therefore How large a loss in dollar terms will existing FARO shareholders experience on the announcement date will be $117 millions
B. Calculation to determine What percentage of the value of FARO’s existing equity prior to the announcement is this expected gain or loss
First step is to calculate the Existing Shares Value
Existing Shares Value =36*$25
Existing Shares Value= $900 millions
Now let calculate the Expected Loss %
Expected Loss % = $ 117/$ 900
Expected Loss % = 13%
Therefore the percentage of the value of FARO’s existing equity prior to the announcement is this expected gain or loss will be 13%
C. Calculation to determine At what price should FARO expect its existing shares to sell immediately after the announcement
Price Per Share: $ 25*(1 - 0.13)
Price Per Share$25*0.87
Price Per Share: $21.75
Therefore what price should FARO expect its existing shares to sell immediately after the announcement is $21.75
Answer:
The correct answer is option d.
Explanation:
Music compact discs are normal goods. This means that they have a positive income elasticity.
If musicians lower their royalties the cost of producing CDs will get reduced and producers will have more profit. The producers will be able to produce more compact discs at the same cost. This will cause the supply of compact discs to increase. As a result, the supply curve will move to the right.
Compact discs player is a complementary good for compact discs. A fall in the price of the complement will increase the demand for discs. At the same, an increase in income of music lovers will contribute to increasing the demand for discs.
As a result, the demand curve will shift to the right. This rightward shift in both the demand as well as the supply curve will cause the equilibrium quantity to increase. The change in price will depend upon the extent of change in demand and supply.
