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3 years ago

When advertising increases brand loyalty for your company's brand, then the company's demand curve becomes:

1 answer:

6 0

Advertising often uses different ways to improve brand loyalty. The company's demand curve becomes more inelastic.

Brand Loyalty is very important and beneficial to businesses because it can result to constant purchases by consumers, higher revenues, and customer referrals.

It is regarded as a positive association that consumers cling to a specific product or brand. Customers who show brand loyalty are always buying a product or service.

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Other things equal, a firm will have to pay a higher coupon rate on its subordinated debentures than on its second mortgage bond

spin [16.1K]

The statement "Other things equal, a firm will have to pay a higher coupon rate on its subordinated debentures than on its second mortgage bonds." is True

This is further explained below.

<h3>What is a Mortgage?</h3>

Generally, MBS stands for mortgage-backed securities, which are bonds that are backed by mortgages and other types of real estate loans.

They are produced when a number of these loans, which often have qualities that are comparable to one another, are pooled together.

A company that operates for the purpose of making a profit and is often structured as a partnership in order to carry out the provision of professional services, such as legal or accounting work, is referred to as a firm.

The maximization of profits is the overarching goal of the business, according to the theory of the firm.

In conclusion, It is correct to say that, "all things being equal, a company will be required to pay a greater coupon rate on its subordinated debentures than on its second mortgage bonds."

Read more about mortgage bonds

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8 0

1 year ago

A bank will often hold government securities as an asset. If a bank were to sell S500,000 in government securities to an individ

sleet_krkn [62]

Answer:a.

It would increase by $500,000 multiplied by the reciprocal of the required reserve ratio.

Explanation:

A bank will often hold government securities as an asset. If a bank were to sell S500,000 in government securities to an individual who paid for the bond in cash and the bank placed this cash in its vault, by how much would the money supply change as a result - It would increase by $500,000 multiplied by the reciprocal of the required reserve ratio.

The money supply is the entire stock of currency and other liquid instruments circulating in a country's economy and is given by the formula:

MONEY SUPPLY = RESERVES X MONEY MULTIPLIER

Therefore the bank reserves increasing in the scenario will increase money supplier by the effect of the money multiplier or the reciprocal of the required reserve ratio.

5 0

3 years ago

Jan Throng invested $39,000 in the Invesco Charter mutual fund. The fund charges a commission (load) of 4.5 percent when shares

Karolina [17]

Answer:

amount of commission (load) Jan must pay is $1755

Explanation:

given data

investment = $39,000

charges commission (load) = 4.5 percent

to find out

Calculate the amount of commission (load) Jan must pay

solution

we get amount of commission will be here as

amount of commission = investment × charges commission % ......................1

put here value we will get

amount of commission = $39000 × 4.5%

amount of commission = $39000 × 0.045

amount of commission = $1755

so amount of commission (load) Jan must pay is $1755

5 0

3 years ago

Amend Inc. debited Accounts Receivable and credited Allowance for Uncollectible Accounts to reestablish an account previously wr

goldfiish [28.3K]

Answer:

Cash; account receivable

Explanation:

The journal entry to reestablish an account previously written off is given below:

Cash Dr XXXXX

To account receivable XXXXX

(being the reestablish an account previously written off is recorded)

Here the cash is debited as it increased the assets and account receivable is credited as it decreased the assets

5 0

3 years ago

Stock Y has a beta of 1.30 and an expected return of 14.9 percent. Stock Z has a beta of .95 and an expected return of 12.8 perc

Sever21 [200]

Answer:

Stock Y is overvalued and Stock Z is undervalued.

Explanation:

The stock is fairly valued when the required rate of return on the stock is equal to its expected return. If the expected return on the stock is more than the required rate of return, the stock is undervalued and vice versa.

The required rate of return on the stock is calculated under the CAPM approach suing the following formula.

r = rRF + Beta * rpM

Where,

rRf is the risk free rate
rpM is the risk premium on market

r of Stock Y = 0.052 + 1.3 * 0.077 = 0.1521 or 15.21%

The required rate of return of Stock Y (15.21%) is more than its expected rate (14.9%) which means the stock is overvalued.

r of Stock Z = 0.052 + 0.95 * 0.077 = 0.12515 or 12.515%

The required rate of return of Stock Z (12.515%) is less than its expected rate (12.8%) which means the stock is undervalued.

6 0

3 years ago