Anne-Marie Cole Runs the Sales Division for a Local Auto

question 52

Multiple Choice

Anne-Marie Cole runs the sales division for a local auto insurance firm.One of her key duties is to ensure the company has 10 percent market share by the end of the year.When evaluating the current sales numbers, she determines that her sales division has total sales of $3 million and the entire industry has total sales of $50 million.What additional sales must Anne-Marie's division meet to ensure they have 10 percent of the market by the end of the year?

• A)$1 million
• B)$2 million
• C)$5 million
• D)$10 million

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Definitions:

Coupon Rate

The annual interest rate paid on a bond's face value to its holders, expressed as a percentage of the face value.

Duration

Measures the sensitivity of a bond's price to changes in interest rates, calculated as a weighted average of the times until the bond's cash flows are received.

Yield To Maturity

The total return anticipated on a bond if the bond is held until its maturity date, including all interest payments and the repayment of principal.

Coupon Rate

The interest rate that a bond issuer will pay to a bondholder, typically expressed as an annual percentage of the bond's face value.