Answer:
The variable rate loan term best describes this loan.
Explanation:
In these type of loans variable interest rate is charged. A variable interest rate is a floating interest rate on a loan or security (bonds,debentures) that changes over time because it is based on an underlying benchmark interest rate or index that changes periodically. So the interest payment fluctuates with change in benchmark.
The advantage of a variable interest rate is that if the underlying interest rate or index falls down, the borrower’s interest payments also decrease. Accordingly, if the underlying index rises, interest payments increase.
Answer:
21.75%
Explanation:
The computation of the expected rate of return is shown below:
According to the Capital Asset Pricing Model (CAPM)
Expected Rate of return = Risk Free Rate of Return + Beta ×(Market Rate of Return - Risk Free Rate of Return)
24.75% = Risk Free Rate of Return + 1.5 × (16.50% - Risk Free Rate of Return)
So,
Risk Free Rate of Return = 0%
Now If the market return this year turns out to be 14.50%
Expected Rate of Return = Risk Free Rate of Return + Beta ×(Market Rate of Return - Risk Free Rate of Return)
= 0% + 1.5 × (14.50% - 0%)
= 21.75%
Answer:
: $4,610
Explanation:
The allowance for uncollectible accounts should be 2% of accounts receivable. So first we wil find out the 2% of $268,000.
($268,000 x 2%) = $5,360
Then we will subtract the $750 allowance for uncollectible accounts before any adjustments.
$5,360 - $750 = $4,610
The amount of the adjusting entry for uncollectible accounts would be: $4,610.
Answer:
High demand and little supply
Explanation:
There is a gap in the market which when filled by few companies means they aren't competing against many others and can charge higher prices
Answer:
Explanation:
iate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Pretax cost of debt % If the tax rate is 40 percent, what is the aftertax cost of debt? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Aftertax cost of debt %