The prime rate is the base rate for any financial transaction. The prime rate is considered for each type of lending instruments by the bank. bank add a margin % over the prime rate and offer loan/instrument at the increased rate.
In the given case, the BestBank's Visa credit card discloses an A.P.R. of "Prime Rate + 5.74% to Prime Rate + 22.74%, which means the A.P.R is calculated on the basis of Prime rate and any change in prime rate will directly affect the A.P.R.
The Prime Rate has increased from 3.25% to 4.25%, it means the increase of 1%. Hence the A.P.R. Shall also increase by 1%.
Hence the correct answer is:
b. Increase in A.P.R by 1%
Answer:
B. Cash 1,300 Dr, Accounts Receivable 1,200 Dr, Consulting Revenue 2,500 Cr
Explanation:
Kincaid Company
Journal Entry
Date Description Debit Credit
Cash $1,300
<em>Accounts Receivable $1,200</em>
Consulting Revenue $2,500
Answer:
Core components
Explanation:
In the product component model, the core component is the area concerned with what satisfies the needs and wants of customers.
If a company wishes to meet local differences in five foreign markets like un the question stated above, the core components contains what the customers in each of those five foreign markets are interested in.
The core components vary between markets. Market A, may like the color of the product in red and market B may like the color of the product in blue. So identifying these things and satisfying the needs of the customers would be done in the core component.
Answer:
Maximum price to be paid for the stock = $12.43
Explanation:
The Dividend Valuation Model is a technique used to value the worth of an asset. According to this model, the worth of an asset is the sum of the present values of its future cash flows discounted at the required rate of return.
<em>Hence the value of the stock would be the present value of its future dividend discounted at 15%</em>
Year PV of dividend
1 8 ×1.15^(-1)
2 4 × 1.15^(-2)
3. 2 × 1.15^(-3)
4 2 × 1.15^(-4)
PV of dividend = (8 ×1.15^-1) + (4 × 1.15^-2) + (2 × 1.15^ -3) + (2× 1.15^-4) = 12.439
Maximum price to be paid for the stock = $12.43
Answer:
The correct answer is letter "A": B2B.
Explanation:
In a B2B business model goods or services are traded between two or more businesses. Most parts of these transactions are dedicated to the exchange of raw materials. Customers are part of the process only when the final product is offered in the open market but not during the B2B business process.
