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kifflom [539]
3 years ago
8

First, spend a couple of sentences summarizing the Concepts in Action video you watched this week. Then, answer the following. I

n the Concepts in Action video you watched this week, the speaker mention that for a small business, having payment terms is like using "free money" for a while. What do you think this means
Business
1 answer:
Masja [62]3 years ago
6 0

Answer with its Explanation:

Free Money means the money that has to be paid back to the money lender within a reasonable time. The money lender usually is a trader who sells his product at credit allowing his customer a reasonable period to payback. Furthermore, the free money is termed free because they are interest free lendings.

In real life, free money is can be availed by purchasing products from the suppliers if you are acting as a middle man in the distribution channel or you are a small customer and your borrowings doesn't impact the supplier. Almost all of the businesses lend free money in the form of products because allowing credit increases the sales of the organizations.

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Mackay gives a list of items (starting with "Two lasts of wheat, 448 florins") that were traded for one tulip root. He could hav
Oksana_A [137]

Answer:

For a better valuation of trade.

Explanation:

Mackay could have left out this list and simply said that the root cost 2500 florins. But he gave the list to have a better understanding of the valuation of trade. Now, the cost could have simply being layed out. But then this list helped helped to give a better perspective of the valuation of the bulb and also how it could be used to replace money

8 0
3 years ago
The brinton clothing company wants to create and build brand awareness. It would use ________ advertising.
dolphi86 [110]

Answer:

Informative

Explanation:

It would use <u>informative</u> advertising

6 0
2 years ago
Read 2 more answers
Orwell Building Supplies' last dividend was $1.75. Its dividend growth rate is expected to be constant at 25% for 2 years, after
EleoNora [17]

Answer:

Best estimate of the current stock price= $42.64

Explanation:

Price of the stock today = \frac{D1}{(1+ke)^1}+\frac{D2}{(1+ke)^2}+\frac{P2}{(1+ke)^2}.

where P2 = \frac{D3}{ke-g}

D0=$1.75

D1=$1.75(1.25)

D2=$1.75(1.25)(1.25)

D3=$1.75(1.25)(1.25)(1.06)

Price of the stock today = \frac{1.75(1.25)}{(1+0.12)^1}+\frac{1.75(1.25)(1.25)}{(1+0.12)^2}+\frac{1.75(1.25)(1.25)(1.06)}{(0.12-0.06)(1+0.12)^2}. = $42.64

8 0
4 years ago
The Ramirez Company's last dividend was $1.75. Its dividend growth rate is expected to be constant at 25% for 2 years, after whi
Greeley [361]

Answer:

option b is correct

current stock price is $42.64

Explanation:

given data

dividend = $1.75

growth rate = 25% for 2 year

growth rate 1 = 6%

required return 2 = 12%

to find out

current stock price

solution

we will find here first stock price after 2 year that is

stock price = cash flow at 2 year end × ( 1+rate ) / ( rate 2 - rate1 )    ..................1

so here  cash flow at 2 year end = 1.75×1.25 = 2.1875

2.1875 × 1.25 = 2.734

stock price = 2.734  × ( 1+ 0.06 ) / ( 0.12 - 0.06 )  

stock price = 48.30

so stock price at 0.12 return

= cash flow at 1 year / ( 1+ rate 2 ) + cash flow at 2 year / ( 1+ rate 2 )² + stock price / ( 1+ rate 2 )²

= 2.1875 / ( 1+ 0.12 ) +  2.734 / ( 1+ 0.12 )² + 48.30 / ( 1+ 0.12 )²

= $42.64

so option b is correct

current stock price is $42.64

8 0
4 years ago
Assume you have a car worth $3,200 and investments worth another $7,500. of you owe $1,300 on credit cards and that is your only
coldgirl [10]
<span>Net worth is calculated by adding all of your assets together and then subtracting your total amount of debt. In this case, your net worth are the items you own and how much value they are worth. The car ($3200) and the investments ($7500) added together make a total of $10700. Your total debts are $1300 from your credit cards. Subtracting debts from assets ($10700 - $1300) you have a total net worth of $9400.</span>
7 0
4 years ago
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