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2 years ago

Which of the following statements is TRUE? (economics)

Business

1 answer:

Angelina_Jolie [31]2 years ago

6 0

Answer:

Explanation:

Banks are other lending entity's has access to a customer borrowing history. Through credit rating agencies, a bank can know whether a customer has a bad history in making loan repayments.

When a customer takes up a loan, banks share that information with a credit rating agency. The agency updated its records with the customer's national identity, such as the social security number. The banks keep on updating agencies on how each customer is meeting their obligation. Credit card payments are considered as loans.

Credit agencies rates each customer creditworthiness by assessing how they been repaying their debts. A higher credit score means the customer repays his loans promptly without missing installments. The information of each customer is available to all banks and lenders upon request.

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The following lots of a particular commodity were available for sale during the year: Beginning inventory 10 units at $60 First

Rus_ich [418]

Answer:

The answer is: the amount of inventory at the end of the year was $1,583 using the average cost method.

Explanation:

The average cost method calculates the cost of inventory by dividing the total costs of goods by the total units.

10 units x $60 = $600
25 units x $65 = $1,300
30 units x $68 = $2,040
15 units x $75 = $1,125

The total cost of inventory is $5,065 ($600 + $1,300 + $2,040 + $1,125)

The total units in inventory are 80 (10 + 25 + 30 +15)

To find the average cost per unit = $5,065 / 80 units = $63.31

If 25 units were left at the end of the year, then the total cost of inventory is $63.31 x 25 = $1,582,81 or $1,583

3 0

3 years ago

Great Subs Inc., a regional sandwich chain, is considering purchasing a smaller chain, Eastern Pizza, which is currently finance

tatuchka [14]

Answer:

WACC 13.85600%

Explanation:

First we calculate Eastern Pizza CAPM:

$Ke= r_f + \beta (r_m-r_f)$

risk free = 0.08

market rate = 0.12

premium market = (market rate - risk free) 0.04

beta(non diversifiable risk) = 2

$Ke= 0.08 + 2 (0.04)$

Ke 0.16000

Then we solve for WACC

$WACC = K_e(\frac{E}{E+D}) + K_d(1-t)(\frac{D}{E+D})$

Ke 0.16000

Equity weight 0.8

Kd 0.08

Debt Weight 0.2

t 0.34

$WACC = 0.16(0.8) + 0.08(1-0.34)(0.2)$

WACC 13.85600%

The company will use the data on eastern Pizza to evualuate project presented to it. Also, it will consider the new tax rate to determinate the tax shield.

3 0

3 years ago

The U.S. unemployment rate moves up and down as the economy moves in and out of recessions. But over time, the unemployment rate

crimeas [40]

Answer:

c.4%

Explanation:

Based on the information provided within the question it can be said that the unemployment rate fluctuates but over time, always returns to a range of around 4%. Throughout history in the United States of America the unemployment rate has gone up and down with the times but always returns to normal. This normality is usually 3.9% with the lowest lately having been 3.6% in September of 2019.

7 0

3 years ago

Marketing by a service firm to effectively train and motivate its customer-contact employees and all the supporting service peop

ikadub [295]

Answer:

Internal

Explanation:

As the name implies, internal marketing is one in which a service firm trains employees in a product's company and its customers' contact to ensure maximum customer satisfaction. Internal marketing means that every member of staff is involved in marketing and not just the marketing department of the firm.

Cheers.

7 0

3 years ago

Pharoah Company reported net income of $1.30 million in 2022. Depreciation for the year was $208,000, accounts receivable decrea

Jet001 [13]

Answer:

Net cash flow from operating activities

$1,599,000

Explanation:

Pharoah Company

Cash flow from operating activities :

Net income $1,300,000

Net Cash flow from operating activities:

Add depreciation $208,000

Add accounts receivable decreased $455,000

Less accounts payable decreased ($364,000)

Net cash flow from operating activities $1,599,000

7 0

3 years ago