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3 years ago

Gabrielle daily borrows $1,000 at a 6 percent add-on rate for one year.what is the finance charge?answers

1 answer:

5 0

P - principle of the loan
FC - finance change or total interest
N - number of months the loan is force

FC = ($1,000 x .06 x 1)
FC = $60

Finance charge is $60.

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Doug and Kayla formed a partnership with capital contributions of $220,000 and $320,000, respectively. Their partnership agreeme

Mandarinka [93]

Answer:

The correct answer is $79,000 and $37,000.

Explanation:

According to the scenario, the given data are as follows:

Net income = $116,000

Doug's Salary = $52,000

Receive an interest = 10%

So, the amount to be shared equally = [$116,000 - $52,000 - ( 10% × $220,000) - ( 10% × $320,000)] ÷ 2

= $5,000

So, Doug share = $52,000 + ( 10% × $220,000) + $5,000

= $79,000

Kayla share = (10% × $320,000) + $5,000 = $37,000

5 0

3 years ago

Assume a firm has a beta of 1.2. All else held constant, the cost of equity for this firm will increase if the: beta decreases.

eduard

Answer:

Risk-free rate decreases

Explanation:

The CAPM formula for calculating cost of equity requires one to know the value of 3 pieces of information only:

1. the market rate of return,

2. the beta value

3. the risk-free rate.

Ra = Rrf + [Ba∗(Rm−Rrf)]

where:

Ra=Cost of Equity

Rrf = Risk-Free Rate

Ba = Beta

Rm=Market Rate of Return

From the formula

Ra = Rrf + [1.2∗(Rm−Rrf)]

Ra = Rrf + 1.2Rm - 1.2Rrf

From Ra = 1.2Rm -0.2Rrf

From the expression above, it can be seen that the lower the value of Rrf (Risk-Free rate), the higher the value of Ra.

4 0

3 years ago

Russell Corporation sold a parcel of land valued at $440,000. Its basis in the land was $294,800. For the land, Russell received

WITCHER [35]

Answer:

Please see attachment

Explanation:

Please see attachment

6 0

3 years ago

Assume that an analyst is using the constant dividend growth model to value a stock. Which of the following scenarios would be c

Sophie [7]

Answer: A. She believes the company has become riskier, and therefore increases her required rate of return for the stock.

Explanation:

The formula for the Constant dividend growth model of valuing stock is:

<em>= Next dividend / (Required return - growth rate)</em>

From the formula above, one can tell that if the required return is higher, it would result in a lower value for stock because it would divide the numerator more.

If the analyst believes that the company is riskier and increases the required return, the value would therefore reduce if other measures are kept constant.

7 0

3 years ago

An annuity immediate pays 15 at the end of years 1 and 2, 14 at the end of years 3 and 4 and so on. The payments decrease by 1 e

Inessa05 [86]

Answer:

$138.63

Explanation:

I used an excel spreadsheet and the NPV function to determine the present value of this annuity. The present value of this annuity is $138.63

3 0

3 years ago