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3 years ago

What is the prime rate?

Business

2 answers:

Aloiza [94]3 years ago

6 0

The answer is: a. The prime rate is the best interest rate that banks offer their most creditworthy customers.

In order to be considered as 'creditworthy' , there are several requirements that must be fulfilled by the customers. Such as:

- The customers have collateral for their credit (could be in the form of saving account or private assets)

- The customers never maxed out their credit card

- The customers never late to pay their debt.

- The customers have a steady income.

UkoKoshka [18]3 years ago

3 0

I think the answer is A

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Suppose your firm receives a $ 3.2 million order on the last day of the year. You fill the order with $ 1.7 million worth of inv

klio [65]

Answer and Explanation:

The consequences of given transactions are as follows

a. Revenues rise by $3.2 million as the firm received an order

b. Earnings rise by $1.5 million as the firm received an order and it filled by an orders i,e ($3.2 - $1.7)

c. Receivables rise by $1.80 million as it determines the remaining balance which ultimately increased the receivable balance

d. Inventory declined by $1.7 million as the order is filled which ultimately declines the stock

e. The cash would rise by $1.4 million

= Earnings - receivable + inventory

= $1.5 million - $1.80 million + $1.7 million

= $1.4 million

4 0

3 years ago

Periodic Inventory by Three Methods The beginning inventory for Dunne Co. and data on purchases and sales for a three-month peri

shusha [124]

Answer:

Merchandise inventory = $32,864

Cost of merchandise sold = $310,776

Explanation:

As per the data given in the question,

Merchandise inventory = Balance of purchases on 21 April

= 26 units × $1,264 per unit

= $32,864

Calculating the ending inventory :

Details units

Ending inventory = beginning inventory + Purchase - Sale

Beginning inventory = 25 units

Add : Purchase made on

April 8 = 75 units

May 8 = 60 units

may 28 = 80 units

June 21 = 35 units

Total units for sale = 275 units

Less : Units sold on

April 11 = 40 units

April 30 = 30 units

May 10 = 50 units

May 19 = 20 units

June 5 = 40 units

June 16 = 25 units

June 28 = 44 units

Ending Inventory in units = 26 units

Cost of merchandise sold =Merchandise available for sale - (Merchandise inventory, June 30, 2016)

=$343,640 - $32,864

= $310,776

6 0

3 years ago

Consider a firm with an EBIT of $500,000. The firm finances its assets with $2,000,000 debt (costing 6 percent) and 50,000 share

Schach [20]

Answer:

EPS is reduced by $1.92 and 42%

Explanation:

EBIT $500,000

Interest Expense ($120,000) ($2,000,000 x 6%)

EBT $380,000

Tax 40% ($152,000)

Net Earninig $228,000

Outstanding stock = 50,000

EPS = $228,000 / 50,000 = $4.56 per share

Change in Capital Structure.

EBIT $500,000

Interest Expense ($60,000) ($1,000,000 x 6%)

EBT $440,000

Tax 40% ($176,000)

Net Earninig $264,000

Outstanding stock = 50,000 + 50,000 = 100,000

EPS = $264,000 / 100,000 = $2.64 per share

Change in EPS = $4.56 - $2.64 = $1.92 per share

Change in EPS = $1.92 / $4.56 = 0.42 = 42%

5 0

3 years ago

Which of these rights is not considered a right of privacy?

Nina [5.8K]

A. right to engage in polygamy.

i hope this helps

8 0

3 years ago

Factors leading to the slow growth of demand in embryonic industries include all of the following except the

wolverine [178]

Answer:

C) lack of venture capital for innovative products.

Explanation:

Embryonic industries are such industries that are at the beginning stage in their life-cycle. More specifically, newly established ventures are called the embryonic industry or firm.

Options A, B, D, and E all are wrong because a new firm may not produce high qualified first products. It may not have the right complementary products, the production cost may be higher than expected, and finally, there are a few distribution points. Those lead to the slow growth of the embryonic industry.

Option C is the answer because venture capitalists like to invest in innovative products, so there should not be a lack of capital.

4 0

3 years ago