Match the specifications to the type of creditors.

In __________ pricing, the price of goods and services is limited to levels that tend to discourage new entry to markets. Multip

Sati [7]

In Limiting pricing, the price of goods and services is limited to levels that tend to discourage new entry into markets.

<h3>What is LImiting Pricing?</h3>

A monopolist may utilize limiting pricing to deter entrants. If a monopolist sets a profit-maximizing price (MR=MC), the level of supernormal profit is so high that it attracts new enterprises into the market.
Limiting pricing entails lowering the price enough to discourage entry. It results in lower short-term profit, but it allows the corporation to maintain its dominant position and long-term profitability.
As a result, rather than encouraging new firms to participate, the monopolist may decide to establish a price that is lower than the profit-maximizing level, but yet high enough to allow it to make more profits than in a competitive market.

To learn more about Limiting Pricing refer to:

brainly.com/question/12678021

#SPJ4

8 0

2 years ago

The contract that describes the terms of a borrowing arrangement between a firm that sells a bond issue and the investors who pu

miss Akunina [59]

The contract that describes the terms of a borrowing arrangement between a firm that sells a bond issue and the investors who purchase the bonds is called the indenture.

The indenture in the document, in which the bond contract terms are described. The bond trustee is empowered and has a fiduciary duty to protect the interests of bondholders in this agreement.

This documents contains the bond covenants and all the bond features. The covenants are restrictions and requirements that the issuer must follow. The features describe the bond issue itself. If the issuer defaults on any of the provisions in the indenture, the trustee can take action.

To learn more about indenture click below

brainly.com/question/13103904

#SPJ4

5 0

2 years ago

3. distinguish between beta (i.e., market) risk, within-firm (i.e., corporate) risk, and stand-alone risk for a potential projec

Gnesinka [82]

Market risk concerns with the changes occur in the financial market; corporate risk is associated with the organization itself; and standalone risk reflect the problem happen within a single department of an organization.

Here, all the three risks in regard to a portential project are breifly described:

Market risk reflects the effect of loss in the project due to the overall performance of the financial market. Market risk arises from fluctuations in interest rates, exchange rates, stock prices, and commodity prices.
Corporate risk refers to a risk to the project that is associated with an organization’s internal or external factors that may impact profitability negatively.
Standalone risk is a risk that is concerned with a single operating unit, or asset of an organization that may damage the project.

Of the three risks, the market risk is the most relevant because in regard to the project the market risk measures all the factors which have impact on the performance of financial markets.

You can learn more about risks at

brainly.com/question/17238279

#SPJ4

4 0

1 year ago

Revenues normally carry a _______ balance and are shown in the ______________. Credit; Balance sheet Debit; Balance sheet Credit

MA_775_DIABLO [31]

Answer: Credit, income statement

Explanation: Revenues refers to the amount of income a business receives from its customers by performing their core activities.

Credit balance in an account depicts that the relative account is your property and someone owes you that balance. As noted earlier, revenue is the amount earned by the company and is owed by the customers , therefore, it has a credit balance.

Income statement refers to the statement that depicts the performance of the firm for the year and is used to ascertain profit. Revenue is recorded in the income statement so that after deducting the expenses, income could be ascertained.

4 0

4 years ago

Lila purchased Hampton Industries Inc. stock for $18.35 and sold it 6 months later for $21.45 after receiving a $0.50 dividend.

Scorpion4ik [409]

Answer:

HPR = 19.62 %

APR = 39.24 %

EAR = 43.09 %

Explanation:

a.Calculation of Holding Period Return :

The formula for calculating the holding period Return is

= ( Sale price + Dividend earned during the holding period – Purchase Price ) / Purchase Price

As per the information given in the question is

Purchase Price : $ 18.35

Sale price : $ 21.45

Dividend per share = $ 0.50

Applying the above values in the formula we have

= ( 21.45 + 0.50 – 18.35 ) / 18.35

= 3.60 / 18.35

= 0.196185 = 19.6185 %

= 19.62 % ( when rounded off to two decimal places )

Thus the HPY i.e., Holding period return is 19.62 %

b.Calculation of Annual Percentage Rate :

The formula for calculating the Annual Percentage Rate = Holding period return / n

Where n = Period of Investment / 12 months

We know that the period of Investment = 6 months

Thus n = 6 / 12 = 0.50

Holding Period Return = 19.62 %

Applying the above values in the formula we have

Annual Percentage Rate = 19.62 % / 0.50

= 39.24 %

Thus the Annual Percentage Rate = 39.24 %

c. Calculation of Effective Annual Return :

The formula for calculating the Effective annual rate = ( 1 + Return ) ( 1/n ) - 1

Where Return = Holding period return = 19.62 % = 0.1962

N = No. of years = ( 6 / 12 ) years = 0.5 years

Applying the above values in the formula we have

= ( 1 + 0.1962 ) ( 1 / 0.5 ) - 1

= ( 1.1962 ) 2 - 1

= 1.430894 – 1

= 0.430894 = 43.0891 %

= 43.09 % ( when rounded off to two decimal places )

Thus the Effective annual rate = 43.09 %

NOTE : The value of ( 1.1962 )2 has been calculated using the excel function =POWER(Number,Power). Thus =POWER(1.1962,2) = 1.430894

Thus we have :

HPR = 19.62 % ; APR = 39.24 % ; EAR = 43.09 %

4 0

4 years ago