Joseph is probably denied credit due to his bad character, which is an essential element of the Three C's of Credit.
<h3>What are the Three C's of Credit?</h3>
To determine the credibility of a person for grant of a loan or an advance, a lender takes into consideration the Three C's of credit, which are as follows,
- Character
- Capacity
- Capital or Collateral.
Collaterals or Capital help in determination of security of lender from borrower, in case when the borrower is unable to repay the credit. Capacity determines the ability to repay the credit.
Character, on the other hand, helps in determination whether the customer or the borrower's behavior, and the qualities of his or her character in the society.
Hence, the three C's of credit are explained above.
Learn more about the Three C's of Credit here:
brainly.com/question/8743350
#SPJ1
Answer:
American Explorations current WACC is 9%
Explanation:
The computation of WACC is shown below:
= (Cost of equity × equity percentage) + (after-tax cost of debt × debt percentage)
= (12% × 50%) + (6% × 50%)
= 6% + 3%
= 9%
Since we have to compute only current WACC so we considered the 50-50 ratio. Hence, we ignored 70% cost of debt
WACC shows a relationship between debt, equity and the preferred stock.
Answer:
Fixed costs are high, variable costs are low
Explanation:
The reason is that the fixed costs are high because these fixed costs are uncontrollable and their might not be an alternative which means we have to move with higher fixed costs. And this is because most of tasks in manufacturing are handled by the machines not humans. So the cost of maintenance, depreciation, etc are fixed costs which are uncontrollable.
Furthermore, the company has very small variable costs because the company enjoys economies of scales, fast paced manufacturing machines, etc. And this is controllable by investments in another more robust machinery.
