THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION

question 248

Multiple Choice

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
A manufacturer of automobiles conducted a market survey.Eighty percent of the customers want better fuel efficiency,while 55% want a vehicle navigation system and 45% percent want both features.
-The probability that a person does not want a vehicle navigation system is:

• A)0.45
• B)0.10
• C)0.90
• D)0.35

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Definitions:

Preferred Stock

A class of stock that typically has a priority claim on dividends and assets in the event of liquidation over common stock.

Yield

The income return on an investment, such as the interest or dividends received, expressed as an annual percentage of the investment’s cost.

Cost of Debt

The effective rate that a company pays on its current debt, including loans and bonds, which can be measured before or after taxes.

Annual Coupon

The annual interest payment made to bondholders, expressed as a percentage of the bond's face value.