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Setler79
1 month ago
13

When friends of Brian Richardson went to the carnival, they always wanted to take him with them because Richardson had an uncann

y ability to win almost every arcade game he played. Usually by the end of the evening his friends were also winning because Richardson did not mind sharing his secrets. His friends urged him to write a book. After several attempts, Richardson created The Secrets of Amusement Park Games-Revealed. In the 85-page book, Richardson reduces the art of playing arcade games to a science. According to him, the trick is to realize each game is not a game of chance. Richardson's mini-book is available at Amazon for $5.95.
Refer to the scenario Since, with the use of Richardson's book, most people dan win arcade games and carry home as many stuffed animals as their arms can hold, what would carnival operators hope for?

a. a slow diffusion of the book
b. the book's purchase and promotion
c. a rapid diffusion of the book
d. intensive distribution and promotion
Business
1 answer:
stepan [3K]1 month ago
3 0

Answer:

Option A indicates a gradual spread of the book.

Explanation:

This book holds the key strategies to excel in the game, resulting in more individuals gaining access to the book, subsequently boosting the number of winners. However, an increase in winners equates to greater payouts for carnival operators, who would then end up giving away more winnings. Consequently, as the book enhances the chances of winning, carnival operators would prefer that its popularity grows slowly, ensuring that the winning methods remain undisclosed to the public.

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Answer:

A. $880

B. -$752.23

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The initial step is to compute the Conversion ratio using the following formula

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Substituting, we find

Conversion ratio = $1,000/$25

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Next, we determine the Conversion value with this formula

Conversion value = Conversion ratio * Conversion price

Substituting gives

Conversion value = 40*$22 per share

Therefore, the conversion value of the issue equals $880

B. Now calculating the Straight bond value of the issue

Using a financial calculator for Present Value (PV)

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This means the Straight bond value of the issue is -$752.23

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