The disadvantage of extending credit to customers is that the cost may <u>exceed </u>the additional sales revenue received through credit transactions. hence, Option C is the correct statement.
<h3>What do you mean by extending credit to customers?</h3>
The method of extending credit to customers permits them to buy items and services and pay for them later on. Offering credit is usually a win-win for each trader and buyer.
Customers have greater buying strength and have a tendency to shop for greater in the event that they are not restrained to the cash they have got at the time of the sale.
The missing information from the above question is given below:
increase
be less than
exceed
Thus, The disadvantage of extending credit to customers is that the cost may <u>exceed </u>the additional sales revenue received through credit transactions. hence, Option C is the correct statement.
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Answer: hi your question has some missing data attached below is the missing table
answer : $9
Explanation:
If Simone practices price discriminations across cities i.e. charging different prices across city instead of charging a single price
<u>To determine the additional profit we will apply the formula below</u>
Profit made from charging different prices - profit made from charging a single price
= ( ( $11 * 4) + ( $9 * 4 ) + ( $10 * 5) ) - ( $11 * 11 units )
= $130 - $121
= $9
Note : For a single pricing system Simone will sell only 11 units at a unit price of $11
while for different pricing system Simone will sell 4 units in city A at$11 , 4 units in City B at $9 , 5 units in city C at $10
"The answer is $106".
After tax cost of debt 6%
Dep per year 1600
Tax sav from dep 640
cost of owning 0 1
interest -480
tax saving 192
maintence -240
maintenece saving 96
Depn tax saving 640
loan repay
net cash cost 208
PV cost of owning (6%) -3474
cost of leasing
lease payment -2100
Tax savings from lease 840
net cash cost -1260
PV cost lease 6% -3368
PV cost own - Pv cost lease 106
Answer: worksheet
Explanation:
The entries for the consolidation of Lisa and Victoria would be recorded in a worksheet.
Consolidation worksheet refers to the tool that is used in the preparation of the consolidated financial statements of both a parent company and the subsidiaries.
The consolidation worksheet is important as it shows the individual book values for the parents company and the subsidiaries.
Answer:
Cost of preferred stock = 12%
correct option is A. 12 percent
Explanation:
given data
preferred stock = $125 per share
annual dividend = $15
cost of issuing and selling = $4 per share
to find out
cost of the preferred stock
solution
we know that Cost of preferred stock is express as
Cost of preferred stock = Annual dividend ÷ (Stock price-Flotation cost) ...........................1
and we know Flotation cost will be here =
= 3.20 %
so
from equation 1 we get
Cost of preferred stock = Annual dividend ÷ (Stock price-Flotation cost)
Cost of preferred stock = $15 ÷ ($125 - 3.20 % )
Cost of preferred stock = 0.120030
Cost of preferred stock = 12%
correct option is A. 12 percent