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3 years ago

Which of the following is most likely to represent a fixed rate, secured debt?

Business

2 answers:

myrzilka [38]3 years ago

4 0

A student loans are more professional and stiff

vladimir1956 [14]3 years ago

3 0

Answer:

D A dealer financed auto loan

Explanation:

A secured debt refers to a loan that is guaranteed by an asset like a house and a fixed rate means that the interest rate doesn't change during the term of the loan. According to this, the option that most likely represent a fixed rate, secure debt is a dealer financed auto loan because it can have a fixed rate and the loan can be guaranteed by the car.

The other options are not right because it could be possible that they have a fixed rate but they don't have a collateral that backs up the loan.

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The most recent financial statements for Bello Co. are shown here: Income Statement Balance Sheet Sales $ 20,700 Current assets

givi [52]

Question : What is sustainable growth Rate

Answer:

Sustainable growth Rate = 1.69 %

Explanation:

Sustainable growth Rate = Return on Equity x Retention Rate

Where Return on Equity = Asset Utilization Rate x Profitability Rate x Financial Utilization Rate

Asset Utilization Rate= Total Sales/Total Assets

= 20,700/46,260 = 0.45

Profitability Rate = Net Income/ Total Assets

= 4,940/46,260 = 0.11

Financial Utilization Rate = total debt/ Total equity

= 16,780/ 29,480 = 0.57

Return on Equity = 0.45 x 0.11 x 0.57

=0.028

Retention Rate = 1- dividend pay out ratio

= 1-0.40

= 0.60

Sustainable growth Rate = 0.028 x 0.60

= 1.69 %

6 0

4 years ago

In Myanmar, six laborers, each making the equivalent of $3.00 per day, can produce 40 units per day. In China, ten laborers

kati45 [8]

Answer:

China

Explanation:

Calculation to determine which location would be most economical to produce the item

Using this formula

LaborCost per Unit=Labor Cost per Day/Production(units per day)

Let plug in the formula

Myanmar = 6 Laborers x $3/day = $18/day

Myanmar=$18/day/ 40 units

Myanmar= $0.45/unit

China = 10 Laborers x $2/day = $20/day

China= $20/day/ 45 units

China= $0.444/unit

Montana = 2 Laborers x $60/day = $120/day

Montana= $120/day/100 units

Montana = $1.20/unit

Therefore the location that would be most economical to produce the item is CHINA

8 0

3 years ago

Hawley company makes decorative wedding cakes. The company is considering buying the cakes rather than baking them, which will a

worty [1.4K]

Answer:

1. Continue to Make the Cakes. Because the Cost of Outsourcing is greater that the cost of making by $1,150.

2. C. Qualitative factors include quality and on-time delivery.

Explanation:

Analysis of the Make or Buy Decision

Make Outsource Difference

Cake costs cakes cakes

Variable costs:

Direct materials $550 $0 $550

Direct labor $950 $0 $950

Variable manufacturing overhead $150 $0 $150

Fixed manufacturing overhead $1,125 $1,125 $0

Purchase cost $0 $2,800 ($2,800)

Total differential cost of cakes $2,275 $3,925 ($1,150)

Qualitative Factors.

Are non-monetary factors that need to be considered in decision making.

8 0

3 years ago

Lauren is trying to find her net income. She used the statement and the steps shown.

Marat540 [252]

Lauren made an error in step 3 because she should have subtracted expenses from income.

Net income = (Total of all sources of income)- (Total of all bills and expenses)

You must subtract expenses because they are things you are paying for.

8 0

3 years ago

Read 2 more answers

High-Low Method

svlad2 [7]

Answer:

Variable cost per unit= $50

Fixed costs= $900,000

Explanation:

Giving the following information:

Total Costs Units Produced

January $1,900,000 20,000 units

February 2,250,000 27,000

March 2,400,000 30,000

To calculate the unitary variable cost and the fixed cost under the high-low method, we need to use the following formulas:

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

Variable cost per unit= (2,400,000 - 1,900,000) / (30,000 - 20,000)

Variable cost per unit= $50

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

Fixed costs= 2,400,000 - (50*30,000)

Fixed costs= $900,000

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

Fixed costs= 1,900,000 - (50*20,000)

Fixed costs= $900,000

7 0

3 years ago