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3 years ago

What is the correlation between term length of a loan and interest paid?

Business

1 answer:

Nadusha1986 [10]3 years ago

7 0

Answer:

There is a positive relationship between the length of a loan and its interest paid

Explanation:

A positive relationship exist between the length of a loan and the interest paid. A higher interest will be paid for a longer time period. This is so because the lender is giving out a sum of money for more than the average time period, hence the interest must be increased appropriately too.

Hence, the shorter the repayment time for a loan, the lowest the interest and vice versa.

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a stock is priced at $45 per share. the stock has earnings per share of $3 and a market capitalization rate of 14%. what is the

yulyashka [42]

Answer: A concept known as Present Value of Growth Opportunities (PVGO) offers analysts a distinct method of appraisal. Given current stock values...

Explanation: Where is PVGO located?

PVGO is the value of a stock minus the earnings-to-cost ratio.

This strategy is predicated on the idea that businesses need to distribute profits to shareholders in the absence of a better use for them, such as investing in projects with a positive Net Present Value (NPV).

What is a stock's PVGO?

The portion of a company's share price that reflects forecasts for future profits growth is known as PVGO. The abbreviation "PVGO" stands for "present value of growth opportunities."

To know more about stock's pvgo visit;

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6 0

1 year ago

A cost is $11,000 at 1,000 units, $12,000 at 2,000 units, and $13,000 at 3,000 units. Using the high-low method, how much is the

Misha Larkins [42]

Answer:

Fixed costs= $10,000

Explanation:

Giving the following information:

Highest activity cost= $13,000

Highest activity= 3,000 units

Lowest activity cost= $11,000

Lowest activity= 1,000 units

<u>To calculate the unitary variable cost and total fixed cost, we need to use the following formulas:</u>

Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)

Variable cost per unit= (13,000 - 11,000) / (3,000 - 1,000)

Variable cost per unit= $1

Fixed costs= Highest activity cost - (Variable cost per unit * HAU)

Fixed costs= 13,000 - (1*3,000)

Fixed costs= $10,000

Fixed costs= LAC - (Variable cost per unit* LAU)

Fixed costs= 11,000 - (1*1,000)

Fixed costs= $10,000

6 0

3 years ago

Department F had 4,000 units in Work in Process that were 40% completed at the beginning of the period at a cost of $13,400. Of

Rufina [12.5K]

Answer:

a.$3.35

Explanation:

The first step in determining conversion cost per unit is to calculate the Total Equivalent units of production for Conversion Costs.

Conversion Costs

Units Completed and transferred (15,000 × 100%) = 15,000

Units in Ending Work In Process (3,000 × 75%) = 2,250

Total Equivalent units of production = 17,250

The next step is to determine the total conversion cost of production incurred during the period.

Conversion Costs

Conversion Costs in Beginning Work In Process $4,800

Conversion Costs added during the period ($33,000 + $20,000) $53,000

Total Conversion Costs $57,800

Finally calculate the conversion cost per unit

Conversion cost per unit = Total Conversion Costs / Total Equivalent units of production

= $57,800 / 17,250

= $3.35 (to the nearest cent)

4 0

3 years ago

rabapples, Inc. purchases and sells boxes of dried fruit. The following information summarizes its operating activities for the

pantera1 [17]

Answer:

$40.875

Explanation:

Given that,

Selling Expenses = $ 9,600

Merchandise Inventory on December 31 = 33,000

Merchandise Inventory on January 1 = 47,000

Purchases of merchandise = 83,500

Rent for store = 12,100

Sales commissions = 7,300

Sales revenue = 168,500

Cost of goods sold:

= Beginning merchandise inventory + Merchandise purchase - Ending merchandise inventory

= $47,000 + $83,500 + $33,000

= $163,500

If Crabapples sold 4,000 boxes of dry fruit during the year, then the cost per box of dry fruits is:

= Cost of goods sold ÷ Number of boxes sold

= $163,500 ÷ 4,000

= $40.875

3 0

3 years ago

Julie and anna opened their store – "hot coffee, cool clothes" – just 12 months ago. the concept was based on a store that they

kenny6666 [7]

Is this a question or a statement?

~ThePirc

6 0

2 years ago