Atlanta Spokane

Total liabilities $610,000 $466,200
Total equity 630,000 1,648,000

Compute the debt-to-equity ratio for each of the above companies. Which company appears to have a riskier financing structure

Answers

Answer 1

Answer:

Debt to Equity = Total liabilities / Total Equity

Atlanta

= 610,000/630,000

= 0.9682

= 0.97

Spokane

= 466,200/1,648,000

= 0.28

Atlanta appears to have the riskier financing structure because a higher debt to equity ratio signifies less capacity to be able to pay off debt with the equity which means there is a greater chance of default.


Related Questions

Which form of business having Unlimited liability?

a.
Sole proprietor business

b.
Corporate business

c.
None of the above

d.
Partnership business

Answers

Answer:

A

Explanation:

Within a sole proprietorship, the single business owner is subject to bankruptcy and even loosing personal belonging to debt if things go wrong. So this form has unlimited liability.

Answer letter choice A

Carter's preferred stock pays a dividend of $1.40 per quarter. If the price of the stock is $69.00, what is its nominal (not effective) annual expected rate of return?

Answers

Answer:

Carter's preferred stock nominal annual expected rate of return is 8.12%.

Explanation:

Nominal annual expected rate of return of a preferred stock can be described as the current or unadjusted rate of return of the stock.

The nominal annual expected rate of return can be calculated as follows:

Nominal annual expected rate of return = Annual preferred stock dividend per share / Preferred stock price ............. (1)

Where;

Annual preferred stock dividend per share = Dividend per quarter * 4 = $1.40 * 4 = $5.60

Preferred stock price = $69.00

Substituting the values into equation (1), we have:

Nominal annual expected rate of return = $5.60 / $69.00 = 0.0812, or 8.12%

Therefore, Carter's preferred stock nominal annual expected rate of return is 8.12%.

(Cost of debt) Sincere Stationery Corporation needs to raise $500,000 to improve its manufacturing plant. It has decided to issue a $1,000 par value bond with a 14 percent annual coupon rate and a 10-year maturity. The investors require a 9 percent rate of return. a. Compute the market value of the bonds. b. What will the net price be if flotation costs are 10.5 percent of the market price?

Answers

Answer:

a. $1,320.88

b.  $1,182.19

Explanation:

The computation is shown below:

a. For market value of the bond

Given that

Rate = 9%

NPER = 10

PMT = $1,000 * 14% = $140

FV = $1,000

The formula is shown below:

= -PV(RATE;NPER;PMT;FV;TYPE)

After applying the above formula, the present value is $1,320.88 i.e. equivalent to the market value of the bonds

b. Now the net price be

= Market price × (1 - flotation cost)

= $1,320.88 × (1 - 0.105)

= $1,182.19

Controllable margin is defined as A.sales minus variable costs. B.sales minus contribution margin. C.contribution margin less controllable fixed costs. D.contribution margin less noncontrollable fixed costs.

Answers

Answer:

answer d is correct is correct

Mary Alice just won the lottery and is trying to decide between the options of receiving the annual cash flow payment option of $420,000 per year for 25 years beginning today, or receiving one lump-sum amount today. Mary Alice can earn 6% investing this money. At what lump-sum payment amount would she be indifferent between the two alternatives? (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided and round final answer to nearest whole dollar amount.)A. $5,369,011B. $6,111,151C. $5,691,151D. $10,500,000

Answers

Answer:

C. $5,691,151

Explanation:

At what lump-sum payment amount would she be indifferent between the two alternatives?

Mary Alice just won the lottery and is trying to decide between the options of receiving the annual cash flow payment option of $420,000

$420,000 x 13.55036* = $5,691,151

*PVAD of $1: n = 25; i = 6%

Harrold is the project manager for his organization and he has seven people on his project team. Who is responsible for executing the project plan and creating the project deliverables?A. Project lead.B. Project manager and the project team.C. Project manager.
D. Project team.

Answers

Answer: D. Project team

Explanation:

The project team is responsible for executing the project plan and creating the project deliverables. They are also in charge of contributing to the success of the project by making sure that the project objectives are achieved.

Each team mate has a specific role that he or she is assigned and the team should execute the tasks assigned to them successfully.

In 2007, the price of oil increased, which in turn caused the price of natural gas to rise. This can best be explained by saying that oil and natural gas are:_______.A. Complements and the higher price for oil increased the demand for natural gas. B. Complements and the higher price for oil decreased the supply of natural gas. C. Substitutes and the higher price for oil increased the demand for natural gas. D. Substitutes and the higher price for oil decreased the supply of natural gas. E. Unrelated and the prices of both products increased because of increased reliance on fossil fuels.

Answers

Answer:

C. Substitutes and the higher price for oil increased the demand for natural gas.

Explanation:

In 2007, the price of oil increased, which in turn caused the price of natural gas to rise. This can best be explained by saying that oil and natural gas are substitutes and the higher price for oil increased the demand for natural gas.

Substitute goods are goods that can be used in place of another good because they serve the same purposes.

The demand for goods is said to be elastic, when the quantity of goods demanded by consumers with respect to change in price is very large. Thus, the more easily a consumer can switch to a substitute product in relation to change in price, the greater the elasticity of demand.

Generally, consumers would like to be buy a product as its price falls or become inexpensive.

For substitute products (goods), the price elasticity of demand is always positive because the demand of a product increases when the price of its close substitute (alternative) increases.

A monopoly that attempts to charge the socially desirable price will invariably reduce their economic profit because:_______

a. price and marginal cost is higher than marginal revenue.
b. marginal cost is equal to zero.
c. price is lower than marginal cost.
d. average cost and marginal cost are equal.

Answers

Answer:

D

Explanation:

A monopoly that attempts to charge the socially desirable price will invariably reduce their economic profit because average cost and marginal cost are equal.

Answer:

The correct choice is -  Price is equal to the Marginal Cost.

Explanation:

Socially desirable price refers to the point on the graph where the demand (D) stands equal to or intersects the marginal cost (MC). That is MC = D.

The challenge with setting prices like this is that the business in arriving at the price of its product(s) and or service(s) has not taken into consideration the fixed cost to the business. To breakeven, the owner of a business must know its Average Total Cost (which takes into consideration both marginal and fixed costs) and set its prices equal to same. To make a profit however the business must set its prices above the Average Total Cost.

Recall that ATC = MC +  F/Q where

ATC = Average Total Cost

MC = Marginal Cost

F = Fixed Cost

Q =  Quantity of goods produced

D =  Quantity of goods demanded

Cheers

Amy is single. During 2020, she determined her adjusted gross income was $12,000. During the year, Amy also contributed $2,500 to a Roth IRA. What is the maximum saver's credit she may claim for the year

Answers

Answer:

$1,000

Explanation:

Calculation for the maximum saver's credit she may claim for the year

For us to know the maximum saver's credit amount that she may claim for the year we have to know the standard maximum contribution amount that is eligibe for the maximum saver's credit which is the amount of $2,000 and then we multiply the amount by the standard filing status and AGI percentage which is 50%

Hence:

Maximum saver's credit=$2,000*50%

Maximum saver's credit=$1,000

Therefore the maximum saver's credit she may claim for the year will be $1,000

At an output level of 17,500 units, you have calculated that the degree of operating leverage is 3.26. The operating cash flow is $78,000 in this case. Ignore the effect of taxes. What will be the new degree of operating leverage for 18,500 units and 16,500 units? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) DOL at 18,500 units DOL at 16,500 units

Answers

Answer:

DOL at 18,500 = 2.91 DOL at 16,500 = 3.78

Explanation:

First find out the Contribution margin per unit and the fixed costs to enable you calculate the profit for the 18,500 units and the 16,500 units.

DOL = Contribution Margin/ Profit

3.26 = Contribution Margin/ 78,000

Contribution Margin = 3.26 * 78,000

= $254,280

Per unit = 254,280/17,500 = $14.53

Fixed Costs = Contribution - Profit

= 254,280 - 78,000

= $176,280

DOL at 18,500 units.

Profit = (14.53 * 18,500) - fixed costs of $176,280

= $92,525

DOL = Contribution/ Profit

= (14.53 * 18,500) / 92,525

= 2.91

DOL at 16,500 units.

Profit = (14.53 * 16,500) - 176,280

= $63,465

DOL = (14.53 * 16,500) / 63,465

= 3.78

What would be the approximate expected price of a stock when dividends are expected to grow at a 25% rate in each of years 2 and 3, and then grow at a constant rate of 5% if the stock's required return is 13% and next year's dividend will be $4.00?

Answers

Answer:

$68.64

Explanation:

Div₁ = $4

Div₂ = $5

Div₃ = $6.25

Div₄ = $6.5625

the terminal value at year 3 = Div₄ / (Re - g) = $6.5625 / (13% - 5%) = $82.03

P₀ = $4/1.13 + $5/1.13² + ($6.25 + $82.03)/1.13³ = $88.28/1.13³ = $68.64

Which are Career and Technical Student Organizations? (Check all that apply.)
Business Professionals of America
American Association of School Administrators
American Chemical Society
UDECA
Future Business Leaders of America
FFA
Skills USA
FCCLA
Will give brainliest! 50 points!!!

Answers

Answer:

Answer:

Business Professionals of America

American Association of School Administrators

DECA

Future Business Leaders of America

Explanation:

Hope it helps your question!

Answer:

A,B,D,E

Explanation:

Why would an e-mail rule memo like this work better as an innovation-driven company such as Tesla rather than at a manufacturing-driven company such as General Motors

Answers

Answer:

An e-mail rule memo like this work better as an innovation-driven company such as Tesla rather than at a manufacturing-driven company such as General Motors is discussed below in details.

Explanation:

The general motor is a very large business in each department with numerous tiers of hierarchy. then departments of the hierarchy are likely to report each other. the company's overall structure is very bureaucratized. one of the disadvantages is that when it comes to decision making and policymaking. General Motors are a slow-moving business. However, this bureaucracy is required by the big organizational structure to keep it together.

Tesla is a business that is younger and relatively lower than General motors because of this general motor funds are likely to be lacking but they are agile and that is their benefit.

An e-mail rule is a rule that determines the better way to mail the messages formally or informally. Tesla is a business that is younger and relatively lower than General motors because of this general motor funds are likely to be lacking but they are agile and that is their benefit.  

The reason e-mail rule memo works better as compared to innovation-driven is:

 

The general motor holds a very large economic activity in each department with numerous tiers of hierarchy and then these departments of the hierarchy are likely to report each other,  the company's overall structure is very bureaucratized.

One of the disadvantages of this is that when it comes to decision making and policymaking. General Motors are a slow-moving business.

However, this bureaucracy is required by the big organizational structure to keep it together.

To know more about the general motors and the tesla motors, refer to the link below:

https://brainly.com/question/19509195

A potential obligation that depends on the future outcome of past events is a contingent liability. true false

Answers

Answer:

TRUE

Explanation:

A potential obligation that depends on the future outcome of past events is a contingent liability!

- An obligation is something that is to be done

- A potential obligation is a thing or activity that is among the options of stuff that can be done

- When something depends on the future outcome of past events, it introduces or carries with it, the cost of waiting (for future outcomes)

- A contingent liability is something that poses probability of loss instead of gain. The opposite of liability is asset.

So in business, a potential obligation or action that depends on the future outcome of past events is a contingent loss rather than gain.

If fruit vendors in India had consumed one less cup of tea per day and invested the money in their business, their income at the end of the day would have been _______ after thirty days.

Answers

Answer: Lesser

Explanation:

Despite it might not looks noticeable but shortage really affects production or business, especially when it's done consistently. The amount of reduction it would experience at the end of the month would be tremendous compared to the thought that it's just a little cup of tea.

If the net present value of a project is positive (non-zero), then the project's:________.a) PI will be less than 1. b) internal rate of return will exceed its required rate of return. c) costs exceed its benefits. d) discounted payback period will exceed the life of the project. e) payback period must equal the life of the project.

Answers

Answer:

b) internal rate of return will exceed its required rate of return.

Explanation:

The internal rate of return is the discount rate at which the NPV = 0. If the NPV is positive when calculated using the project's discount rate, then the IRR is going to be higher than the discount rate.

Option A is wrong because the profitability index (PI) of a project is calculated by dividing the present value of its cash flows by its cost. If the NPV is positive, it means that the present value of its cash flows will be greater than the costs, so the pI will be more than 1.

Option C is wrong because if the costs exceed the benefits, then the NPV will be negative.

Option D is wrong because that would mean that the NPV is negative.  

Option E is something made up that doesn't make any sense.

11. Paying off a consumer loan prior to its maturity Paying Off Installment Loans Some installment loans include terms that charge a penalty if the borrower pays off the loan earlier than its maturity date. The specific terms can vary so it’s important to know if a loan you’re considering provides for a prepayment penalty and if it does, what its exact terms are. A common way to compute a penalty is the sum-of-the-digits method. You and your friend recently took out installment loans. You expect to pay off your loan before its maturity date, so you made sure that the contract: Provides for the use of the Rule of 78s Does not contain a prepayment penalty clause Provides for the use of the sum-of-the-digits method Your friend didn’t anticipate being able to pay off the loan before its maturity date—until he won a lot of money in the lottery, enough to pay it off. He decided to pay off the loan today rather than invest his winnings. What’s the most likely reason why? The loan contract would use the sum-of-the-digits method to compute interest if your friend paid off the loan before its maturity date. The interest rate on the loan is lower than the rate of return your friend would earn on his investment. The contract does not contain a prepayment penalty clause. True or False: Computing interest using the sum-of-the-digits method allocates more interest at the beginning of a loan than at the end of the loan. True or False

Answers

I believe it’s True hope this helps

Hayden Company currently sells widgets for $160 per unit. The variable cost is $60 per unit and total fixed costs equal $240,000 per year. Sales are currently 40,000 units annually, and the income tax rate is 40 percent. Required: a. Calculate the contribution margin per unit. b. Calculate break-even in units. c. Calculate break-even in sales dollars d. Calculate the current after-tax net income. e. The company is considering a 10% drop in the selling price that it believes will raise units sold by 15%. Assuming all costs stay the same, what is the impact on income if this change is made? f. How many units need to be sold to earn a pre-tax operating income of $100,000?

Answers

Answer:

a. $100

b. 2,400 units

c. $380,952

d. $2,256,000

e. 15.90 %

f. 3,400 units

Explanation:

Contribution margin per unit

Contribution margin per unit = Sales per unit  less Variable Cost per unit

Therefore,

Contribution margin per unit = $160 - $60

                                                = $100

Break-even in units

The Breakeven units is the level of activity where a firm makes neither a profit nor a loss.

Break-even in units = Fixed Cost ÷ Contribution margin per unit

Therefore,

Break-even in units = $240,000 ÷ $100

                                 = 2,400 units

Break-even in sales dollars

Break-even in sales dollars = Fixed Cost ÷ Contribution margin ratio

Where,

Contribution margin ratio = Contribution margin ÷ Sales

                                           = $100 ÷ $160

                                           = 0.63

Therefore,

Break-even in sales dollars = $240,000 ÷ 0.63

                                              = $380,952

After-tax net income

Contribution ( $100 × 40,000 )    $4,000,000

Less Fixed Cost                             ($240,000)

Next Income Before Tax              $3,760,000

Less Income tax at 40 %             ($1,504,000)

Net Income After Tax                   $2,256,000

Effect of the Change on Income

First, calculate the Degree of Operating Leverage (DOL).

The DOL shows the times Net Income Before Interest and Tax will change as a result of a change in sales contribution.

Degree of Operating Leverage (DOL) = Contribution ÷ Net Income

Therefore,

Degree of Operating Leverage (DOL) = $4,000,000 ÷ $3,760,000

                                                               = 1.06

Effect on Income using the DOL = 1.06 × 15% = 15.90 %

Therefore Net Income would also increase by 15.90 %.

Units to be sold to earn an income of $100,000

Units to Earn a Target Profit = (Fixed Costs + Target Profit) ÷ Contribution margin per unit

Therefore,

Units to be sold to earn an income of $100,000 = ($100,000 + $240,000) ÷ $100

                                                                                = 3,400 units

Suppose apples come in two quality levels, low and high. At a store in the apple-growing region, the price of low-quality apples is $1 per pound, and the price of high-quality apples is $4 per pound. Johnny lives in the apple-growing region and buys eight pounds of each type. His marginal utility of apples is 3 utils for low-quality apples and 12 utils for high-quality apples.

a. Is Johnny maximizing his utility?
b. Suppose Johnny moves to an area outside the apple-growing region. Shipping the apples to his new area adds $2 to the price of a pound of apples, for both low- and high-quality apples. To simplify matters, assume Johnny's income increases by an amount large enough to fully offset the higher prices of apples. In other words, he can still afford the original bundle of eight pounds of each type of apples. If he continues to buy eight pounds of apples of each type, is he maximizing his utility? If not, how should he change his mix of high- and low-quality apples?
c. What are the implications for the mix of high- and low-quality apples in apple-growing areas and other regions? Where will most of the high-quality apples be sold?

Answers

Answer:

a. Is Johnny maximizing his utility?

in order to determine if Johnny is maximizing his utility we must calculate the utils per dollar spent on apples:

low = 3 / $1 = 3 utils per $high = 12 / $4 = 3 utils per $

since both types of apples yield the same utility per dollar spent, then Johnny is maximizing his utility.

b. Suppose Johnny moves to an area outside the apple-growing region. Shipping the apples to his new area adds $2 to the price of a pound of apples, for both low- and high-quality apples. To simplify matters, assume Johnny's income increases by an amount large enough to fully offset the higher prices of apples. In other words, he can still afford the original bundle of eight pounds of each type of apples. If he continues to buy eight pounds of apples of each type, is he maximizing his utility? If not, how should he change his mix of high- and low-quality apples?

low = 3 / $3 = 1 util per $high = 12 / $6 = 2 utils per $

Johnny is no longer maximizing his utility since he should buy less-low quality apples and more high-quality apples

c. What are the implications for the mix of high- and low-quality apples in apple-growing areas and other regions? Where will most of the high-quality apples be sold?

Since distribution costs increase the price of apples equally regardless of their quality, low-quality apples will be consumer more in the areas surrounding apple-growing fields. On the other hand, high-quality apples will be sold in larger amounts in areas far away from apple-growing fields. Distribution costs are based on weight and volume, not quality. That is why it is more profitable to sell high-quality goods far away.

You use ________________ to communicate a risk and the resulting impact.A. risk management plansB. CBAsC. risk statementsD. POAMs

Answers

Answer:A

Explanation:

I believe the answer is: A.

Because the others don’t sum up to the problem. Hope this helps! :)

On January 1, 20XA, Tie Company purchased a machine that had a sticker (list) price of $22,000. The seller agreed to allow Tie Company to pay for the machine over a three-year period at 10% interest on the unpaid balance and with equal payments of $8,444 due at the end of 20XA, 20XB, and 20XC. The amount that should be debited to the asset account, Machinery, on the day the contract was initiated is (rounded to the nearest dollar)A) $27,865.B) $25,332.C) $22,000.D) $20,999.E) None of the above is correct.

Answers

Answer:

I cant understand that question

The amount that should be debited to the asset account, Machinery, on the day the contract was initiated is  $22,000. Option C is correct.

What is Machinery?

Land, machinery, vehicles, furniture, computer equipment, buildings, and other equipment are examples of fixed assets. Depending on how a corporation conducts business, fixed assets can vary.

Machinery is a noncurrent asset, often known as a fixed asset. A long-term investment made by your organization that is unlikely to or does not easily convert to cash within an accounting year is referred to as a noncurrent asset.

Therefore if a machinery has been acquired on credit and the payment will be made in three equal installment payable annually then the asset shall be recognized at cost of acquisition i.e. $22000 original cost requiring the asset to bring in it present and current location and condition.

Learn more about Machinery:

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#SPJ2

The amount of loss (lower profit or higher cost) from not making the best decision for each state of nature is known as:______.a. best payoff.
b. opportunity loss.
c. risk profile.
d. utility.

Answers

Answer:

b. opportunity loss.

Explanation:

The opportunity loss means the loss that arises by taking the difference between the profit i.e. optimal and the actual payoff received for a specific decision. It could occurred at the time when the best alternative is not picked up.

Therefore according to the given options, the option b is correct as it meets the criteria given in the question

Hence, all the other options are incorrect

You are starting your own small business in Albuquerque. You borrow $10,000 from the bank at a 9% rate for 5 years. What is the total amount you will pay on this loan.

Answers

Answer:

4,500

Explanation:

Use the I=PRT method to help

P=10,000      T=5 years     R=9%=9/100=0.09

this is going to be your equation

I=10,000 x .09 x 5

multiply you t x r

it should now look like this,

I=10,000 x .45

now the last thing to do is just multiply them both.

you should get,

I=4500

A company is 49% financed by risk-free debt. The interest rate is 8%, the expected market risk premium is 6%, and the beta of the company’s common stock is .59. a. What is the company cost of capital? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Cost of capital

Answers

Answer: 9.81%

Explanation:

Cost of capital = (cost of debt * weight of debt) + ( cost of equity * weight of equity)

Cost of Equity = Risk free rate + beta * Market risk premium

= 8% + 0.59 * 6%

= 11.54%

Cost of capital = (8% * 49%) + (11.54% * 51%)

= 9.81%

The separation of the ownership of the firm from the control of the firm leads to: ____________

a. debt financing.
b. an agency problem.
c. depreciation.
d. equity financing.

Answers

Answer:

D. Equity financing

Explanation:

Hope this helps!

The PE ratio: Assuming Net Income for the year is $250,000, what is the net cash flows from operating activities given the following information: Increase in Salaries Payable $ 19,500 Depreciation Expense $ 9,500 Increase in Prepaid Rent $ 27,500 Loss on sale of asset $ 1,250 Increase in Accounts Payable $ 29,500 Increase in Inventory $ 93,000 Multiple Choice

Answers

Answer:

Net operating cash flow = $189,250

Explanation:

Particulars                                    Amount$

Net income                                    250,000

Add:depreciation expense           9,500

Add:loss on sale of asset              1,250

Add:increase in salary payable    19,500

Less:increase in prepaid rent       (27,500)

Add:increase in AP                        29,500

Less:increase in inventory            (93,000)

Net operating cash flow              $189,250

Howard Company has 10,000 shares of $200 par value, 6% cumulative preferred stock and 150,000 shares of $50 par value common stock. Howard declares and pays cash dividends amounting to $800,000. If no arrearage on the preferred stock exists, how much in total dividends is paid to each class of stock

Answers

Answer:

Dividend - Preferred stock = $120000

Dividend - Common stock = $680000

Explanation:

The amount of dividend that is paid to each class of stock can be calculated by first calculating the dividend payable to preferred stock. The amount of dividend on preferred stock is fixed and is paid before the common stockholders are paid. Thus, dividend on preferred stock per year is,

Dividend - Preferred stock = 10000 * 200 * 0.06 = $120000

Thus, out of $800000 cash dividends, $120000 will be paid on the cumulative preferred stock.

Remaining dividend = 800000 - 120000 = $680000

The remaining $680000 will be paid to the common stockholders.

Demand forecasting is the process of creating statements about ____________ of demand that are ______________.

a. future realizations, currently uncertain
b. current uncertainties, future realized
c. current realizations, future realized
d. future uncertainties, currently realized

Answers

Answer:

a. future realizations, currently uncertain

Explanation:

Demand forecasting is the process where the demand is forecasted based on the past sales so that the estimation of the customer demand could be done. It tells the value of the goods and services that the customer will buy in near future

So according to the given options, the first option is correct as it is based on the future i.e. totally uncertain

Therefore the first option is to be chosen

Naomi complains to Andy that he "hasn’t been here – until now, when we’re in crisis mode." Based on this statement, Andy is most likely viewed as a(n) ________ leader by Naomi.

a. passive management by exception
b. active management by exception
c. transformational
d. laissez-faire
e. contingent reward

Answers

Answer: a. passive management by exception

Explanation:

Even though this might sound like it is laissez-faire leadership, it is not.

This is a passive management by exception leadership style and a leader that does this is usually inactive and absent from their duties unless mistakes are being made or crisis are popping up that need to be fixed. They will then spring into action to mitigate the adverse effects of their absence.

This is different from laissez-faire leadership because in laissez-faire, the leader is simply absent even during crisis.

Based on the given statement, it is the passive management by exception that leader by Naomi.

The following information should be considered related to the  passive management by exception :

In this, the leader is not active also it is absent from the duties until the mistakes should be made or the crisis should be popping up the requirement to be fixed. After this, there is the transformation of the spring into action for decreasing the opposite impacts.

Therefore we can conclude that the correct option is a.

Learn more: brainly.com/question/16115373

Question 16 of 20
Frank just met with his marketing team to create his billboard sign. So far, he
knows the billboard will have a catchy slogan, a brief description about the
company and what makes them different, and information directing
customers to visit his website. What element of an effective advertisement is
Frank's billboard missing?
A. Unique selling proposition
B. Call to action
C. Appropriate information
O D. Exciting graphics and color

Answers

Answer:

b. call to action

Explanation:

An element of an effective advertisement is Frank's billboard missing is Call to action. Thus the correct option is B.

What is advertisment?

An advertisement is referred tool of promotion to create awareness of any product among customers and persuade them to make a purchase which helps in the sales of the product.

In this paragraph, it is described that Billboards have a catchy slogan that gets successful gets the attention of the customer, and influences them to make a visit to their website.

The element of effective advertising which the billboard is missing is a call to action that encourages customers to take action of buying. Here Billboards is unable to tell a story to engage customers so that they will not turn their actions of buying.

Therefore, option B is appropriate.

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