Marsden Company Has Three Departments Occupying the Following Amount of Floor

question 73

Multiple Choice

Marsden Company has three departments occupying the following amount of floor space: $$\begin{array} { | l | l | } \hline \text { Department 1 } & 15,000 \text { sq. ft. } \\\hline \text { Department 2 } & 10,000 \text { sq. ft. } \\\hline \text { Department } 3 & 25,000 \text { sq. ft. } \\\hline\end{array}$$ How much store rent should be allocated to Department 3 if total rent is equal to $200,000? (Do not round your intermediate calculations.)

• A) $100,000
• B) $50,000
• C) $66,667
• D) None of these answers is correct.

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Definitions:

Medium-Term Bond

A bond that has a maturity period typically ranging from one to ten years, serving as a middle ground between short-term and long-term investments.

Canada Call

A feature of certain bonds allowing the issuer to redeem the bond before maturity exclusively within Canada.

Market Risk

That part of a security’s total risk that cannot be eliminated by diversification; measured by the beta coefficient.

Maturity Date

The date when the bond’s par value is repaid to the bondholder. Maturity dates generally range from 10 to 40 years from the time of issue.