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ratelena [41]
3 years ago
13

Shelly has a business that requires her to take out a loan to finance short-term working capital needs since she extends credit

repayment terms to her customers. Her working capital needs vary over time depending on her customer orders. The best type of loan financing for this is a_____________.
a. Revolving loan
b. Term loan
c. Secured loan
d. None of these are correct
Business
1 answer:
OLEGan [10]3 years ago
6 0

Answer:

Revolving loan

Explanation:

A revolving loan can be described as a loan that has a fixed monthly repayment. The interest rate that will be paid depends on the individual previous credit score and well as how well the individual can afford it.

The revolving loan provides access to a rolling credit facility, it enables the individual to borrow some amount of money again which could be up to your original loan amount, as long as a certain percentage of the loan has been repaid.

A revolving credit loan helps to provide cash for the business day-to-day activities thereby leading to an effective cash flow management for small businesses.

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McPhail Corporation $100 face value fixed-rate perpetual preferred stock pays an annual dividend of $5.75 per share. What is the
Diano4ka-milaya [45]

Answer:

$92

Explanation:

Value per share of preferred stock = Annual dividend / Required rate of return

Annual dividend = $5.75 per share

Required rate of return = 6.25%

Value of one share of this stock = $5.75/6.25%

Value of one share of this stock = $5.75/0.0625

Value of one share of this stock = $92

7 0
3 years ago
Abbey Co. sold merchandise to Gomez Co. on account, $35,000, terms 2/15, net 45. The cost of the goods sold was $24,500. Abbey C
larisa [96]

Answer:

b. $7,972

Explanation:

The computation of the amount of the gross profit earned is shown below:

But before that we have to do the following calculations

Net sales = $35,000 - $3,600 = $31,400

Merchandise cost = $24,500 - $1,700 = $22,800

Discount allowed= $31400 × 2% = $628

Now

Gross profit earned  is

= $31,400 - $22,800 - $628

= $7,972

5 0
3 years ago
If an organization's requirements conflict with the software package chosen, and the package cannot be customized, the organizat
gogolik [260]

Answer:

A. change its procedures.

Explanation:

if there is any problem with the procedure and the use of the software, the organization should think about it and change the procedures

5 0
4 years ago
What is the par value of a corporate bond that was issued with an 9% annual coupon, pays $45 in semiannual interest, and is due
nasty-shy [4]

Answer:

$1,000

Explanation:

A bond's par value is the bond's face value or maturity value. This is the amount that the bondholder will collect once the bond matures. The coupon is calculated by multiplying the bond's par value times the coupon rate (interest rate). In this case, the coupon rate is 9% / 2 = 4.5% because it pays a semiannual coupon.

coupon = bond's par value x coupon rate

$45 = bond's par value x 4.5%

bond's par value = $45 / 4.5% = $1,000

3 0
4 years ago
Why do you think celebrities bother to involve themselves in politics?
vova2212 [387]

Answer:

Answer in explanation.

Explanation:

I think that celebrities bother to involve themselves in politics to try and make a statement or gain more fame and followers. Oftentimes, you see celebrities speaking on world events such as the BLM act, global warming, wildfires, or the pandemic that is still ablaze. As we all know, all politicians have their strong opinions but the points do not always get across when just the politicians talk about it. Sometimes, celebrities feel the need to speak on a topic that may be popular in the world of politics just to shine a light on it or even to get more attention. In conclusion, I feel that celebrities try to worm their way into politics because I believe that they think that it will make an impact.

7 0
3 years ago
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