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2 years ago

What is the best way to use a credit card to build your credit history?

Business

1 answer:

rjkz [21]2 years ago

7 0

Answer:

All you have to do is pay off your credit card bill in full and on time each month, and just keep doing that.

Explanation:

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The Clifford Corporation has announced a rights offer to raise $10 million for a new journal, the Journal of Financial Excess. T

kkurt [141]

Answer and Explanation:

1. The maximum possible subscription price is $60

The maximum price is anything greater than $0

2.Number of new shares

$10,000,000/$50

=$200,000

Number of right shares

$1,000,000/$200,000

=$5

3. Excess right 58.33

(5*60+50)/(5+1)

Value of excess 1.67

($60-58.33)

4.Portfolio value before right offering

2,000×60

= 120,000

Portfolio value after right offering 120,000

(2000×58.33 +2000×1.67 )

8 0

3 years ago

Microhard has issued a bond with the following characteristics:

Aleks [24]

Answer:

At Yield to maturity = 11%

Price = $1,000

Explanation:

As for the provided information we have:

Par value = $1,000

Interest each year = $1,000 $\times$ 11% = $110

Effective interest rate semiannually = 11%/2 = 5.5% = 0.055

Since it is paid semiannually, interest for each single payment = $110 $\times$ 0.5 = $55 for each payment.

Time = 8 years, again for this since payments are semi annual, effective duration = 16

Price of the bond = $C \times \frac{(1 - \frac{1}{(1+i^n)}) }{i} + \frac{M}{(1 + i)^n}$

Here, C = Coupon payment = $55

i = 0.055

n = Time period = 16

M = Maturity value = Par value = $1,000

Therefore, if yield to maturity = 11% then,

P = $55 \times \frac{1 - \frac{1}{(1 + 0.055)^1^6} }{0.55} + \frac{1,000}{(1 + 0.55)^1^6}$

= $1,000

7 0

3 years ago

Dream Homes is an appliance store. It recently launched its own brand of freezers in order to build customer loyalty. The store

Alex787 [66]

The Pricing strategy which Dream Homes implemented is known as Price lining (Option A) which categorized the prices accordingly with the financial soundness of the customers.

Explanation:

The demand for more goods always plays a vital role in ensuring good sales. The likes of the customers towards particular products depend upon the nature of unique features and its fine quality. By capturing the pulse of the purchasing power of the customers, the business ventures fixed the prices according to the level of economical weaker sections, middle, and high-income groups.

In this case, Dream Homes fix the price of freezers by measuring the ability of customers' to buy them without compromising with the customers requirements. Dream Homes uses the price lining method to gain customers' reputation by selling the products accordingly with their status of income level.

8 0

3 years ago

New greenbelt areas have been created to beautify the grounds around tampa power and light company. the greenbelt areas are an e

Alexandra [31]

The areas are an example of <span>a decrease in the price and an increase in the quantity of the firm's output.
The green areas would decrease the amount of money that the company need to handle waste of production, and social responsibility related cost, which would decrease the price and increase the firm's output.</span>

3 0

3 years ago

Read 2 more answers

Net Zero Products, a wholesaler of sustainable raw materials. Prepared the following aging of receivables analysis.

kkurt [141]

Answer:

Net Zero Products

a) The balance of the Allowance for Doubtful Accounts using the aging of accounts receivable method is $4,300.

b) Adjusting Entry to record bad debt expense:

Debit Bad Debt Expense $1,700

Credit Allowance for Doubtful Accounts $1,700

To record the bad debt expense for the period and bring the allowance to $4,300 credit balance.

Explanation:

a) Data and Calculations:

Aging of receivables analysis:

Total (days) 0 1 to 30 31 to 60 61 to 90 above 90

Accounts receivable $171,000 $96,000 $34,000 $15,000 $12,000

Percent uncollectible 1% 4% 6% 9%

Allowance for doubtful 0 $960 $1,360 $900 $1,080

Total allowance for doubtful = $4,300 (960 + 1,360 + 900 + 1,080)

b) The adjustment in the Allowance for Doubtful Accounts needed for the current period is $1,700 ($4,300 - $2,600). This amount will be debited to the Bad Debts Expense account and credited to the Allowance for Doubtful Accounts. It will bring the total for the Allowance for Doubtful Accounts to $4,300 from $2,600.

3 0

3 years ago