When an organization sets a number of prices for selected groups of merchandise, this is commonly referred to as
A. prestige pricing.
B. price lining.
C. customary pricing.
D. odd-even pricing.
E. ethical pricing.
Answer: B
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Indicate whether the statement is true or false
The prices at which the currency of one country can be converted into the currencies of other countries are known as _____.
A. procurement prices B. political risk costs C. exchange rates D. conversion costs E. transfer prices
Federico enters Gunther's property to read an electric meter. Gunther charges Federico with trespass to land. Federico has
A. a complete defense. B. a partial defense. C. a possible defense. D. no defense.
NorthWest Water (NWW)
Five years ago, issued $50,000,000 face value of 30-year bonds carrying a 14% (annual payment) coupon. NWW is now considering refunding these bonds. It has been amortizing $3 million of flotation costs on these bonds over their 30-year life. The company could sell a new issue of 25-year bonds at an annual interest rate of 11.67% in today's market. A call premium of 14% would be required to retire the old bonds, and flotation costs on the new issue would amount to $3 million. NWW's marginal tax rate is 40%. The new bonds would be issued when the old bonds are called. Refer to the data for . The amortization of flotation costs reduces taxes and thus provides an annual cash flow. What will the net increase or decrease in the annual flotation cost tax savings be if refunding takes place? A. $6,480 B. $7,200 C. $8,000 D. $8,800 E. $9,680