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Greeley [361]
2 years ago
13

Capitalization of interest is adding accrued

Business
1 answer:
Anon25 [30]2 years ago
6 0

It is true that capitalization of interest is adding accrued interest to the principal balance,  so that the interest-bearing principal balance of the loan increases.

<h3>What is interest capitalization?</h3>

This is when an unpaid interest is rolled over with the principal amount, which increase the overall amount to be paid. It is the inclusion of an unpaid interest to the principal balance of the loan taken.

Hence, Capitalization of interest is adding accrued interest to the principal balance,  so that the interest-bearing principal balance of the loan increases.

Learn more about interest capitalization here: brainly.com/question/417585

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Tool Manufacturing has an expected EBIT of $82,000 in perpetuity and a tax rate of 24 percent. The company has $143,500 in outst
Dima020 [189]

Answer:

The value of the firm according to M&M Proposition I with taxes is $513,824.62

Explanation:

Value of firm = [EBIT x (1-Tax) / Equity Cost] + [Debt x Tax rate]

Value of firm = 82000 x (1-24%) / 13% + 143500 x 24%

Value of firm = 62320 / 0.13 + 143500 x 0.24

Value of firm = 479,384.62 + 34,440‬

Value of firm = $513,824.62‬

7 0
3 years ago
What is the major reason(s) for consumer default on loans?
denis-greek [22]
<span>Major reasons for consumer default on loans can include: missed payments, either known or unknown. This has a negative effect on the consumer's credit score and can limit their chances to take out new lines of credit. A continuation of missed payments results in default. High interest loans are also a major reason for default.</span>
6 0
3 years ago
To win back customers after they have discontinued service, when should the initial communication be made? g
nataly862011 [7]

The following methods can be used to successfully win back customers after they have discontinued service.

<h3>Successfully Re-engage Customers:</h3>
  • Consider the primary cause of the customer's initial reluctance. Take some time to consider what drove your brand to this point before developing unique methods for your re-engagement plan.
  • Surveying your consumers is one of the finest ways to find the answers to your inquiries. Based on how long a consumer has been away from your store, create a survey and email it to them.
  • Targeted email campaigns are a wonderful strategy to re-engage clients in addition to providing a generic email newsletter based on their prior actions and behaviours.
  • Digital re-targeting is the practice of setting cookies on visitors to your website or social media profiles, or tagging them, and classifying them into groups depending on the pages they visit and how they interact with your website.

Existing clients that have already chosen to use your brand for commercial purposes are quite valuable. Don't let them disappear into oblivion.

To know more about advantage of e-mail, here

brainly.com/question/2234629

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4 0
1 year ago
If an economy experiences increasing opportunity costs with respect to two goods, then the production possibilities curve betwee
umka2103 [35]

Production possibilities curve between the two goods will be a straight, downward-sloping line if the opportunity cost rise.

<h3>What is production possibilities curve?</h3>

The production possibilities curve serves as graph that display the relationship between the resources and the output that can be produced.

Therefore, when the opportunity cost that exists between two goods, there will be. downward slope as regards the production possibilities curve.

Learn more about production possibilities curve at;

brainly.com/question/2601596

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8 0
2 years ago
Having a good credit history impacts every one of these o teams but one.Which is the one item not impacted by good credit histor
Archy [21]
The answer is C. Anywhere to rent/buy a car or any time of loan looks at your credit history. Employers are supposed to be unbiased and fair when considering candidates for job interviews and can not discriminate based on gender, race, sexual orientation, your credit, and a few other things.
6 0
3 years ago
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