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OLEGan [10]
3 years ago
8

What are some financial consequences that could happen to a borrower if he or she cannot pay back a car loan from a financial in

stitution?
Business
1 answer:
Cerrena [4.2K]3 years ago
3 0

The bank can repossess the car and if anything is used as collateral they can claim that as well. It is best to not get yourself in debt you cannot pay off.

One way to calculate debt is to figure out what your income is per week, and divide that by the weekly payments for the car. Lets say you make 3200, and your debt is 450 a week.

As shown below

<em>Income ÷ Payments </em>

3200 ÷ 450 = 0.14

Now multiply that by 100 to get your percentage,

0.14 x 100 = %14

Financial advisors recommend that you keep your debt-to-income ratio under 30%.

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The firm's target capital structure should do which of the following?
inysia [295]

Answer:

e. Minimize the weighted average cost of capital (WACC)

Explanation:

A: Earnings per share is linked to the stockholders' only, therefore, it cannot achieve the target capital structure. It is a wrong statement.

B: Minimizing the cost of equity is related to the equity only, so, it is also a false statement.

C: Cost of debt is only related to liabilities. It cannot minimize the total target capital structure. Therefore, it cannot be an answer.

D: It is out of question because target capital structure cannot obtain the bond rating.

E: Since weighted average cost of capital is the combination of debt and equity capital's cost, it can be minimized with the firm's target capital structure.

8 0
3 years ago
Assume that a one-year CD purchased for $1000 pays an APR of 10% that is compounded semi-annually. How much is in the account at
vfiekz [6]

Answer:

<u><em></em></u>

  • <em>At the end of the first compounding period: </em><u>$1,050.00</u>
  • <em>At the end of the second compounding period: </em><u>$1,102.50</u>

Explanation:

<u />

<u>1. First period:</u>

  • Investment: $1,000

  • <em>APR =  10%</em> = 0.1 compounded semi-annually.

  • <em>Semi-annually compound interest</em>: 0.1 / 2 = 0.05

  • Interest earned at the end of the first period: $1,000 × 0.05 = $50.00

  • Amount in the accoun at the end of the first period:

                                                        $1,000.00 + $50.00 = $1,050.00

<u>2. Second period</u>

  • Amount in the account beginning the second period: $1,050.00

  • Semi-annually compound interest: 0.1 / 2 = 0.05

  • Interest earned in the second period:

                                                      $1,050.00  × 0.05 = $50.00 = $52.50

  • Amount in the account at the end of the second period:

                                                     $1,050.00 + $52.50 = $1,102.50

6 0
3 years ago
True or False: It is common for debt investors to push entrepreneurs to pursue less risky business strategies for their ventures
NNADVOKAT [17]

it is false and uncommon for debt investors to push entrepreneurs to pursue less risky business strategies for their ventures.

Basically, debt investment entails an investor who lends his money to a firm, individual with an expectation of repayment of loan plus interest from them at a particular date.

The practice that borrowers should engage in less risky business strategies for their ventures will not be encouraged by debt investors because it is less risky and will not yield high return to allow them repay their loan quick enough.

Therefore, it is false and uncommon for debt investors to push entrepreneurs to pursue less risky business strategies for their ventures.

Read more about this here

<em>brainly.com/question/25219850</em>

3 0
2 years ago
In this account of Budweiser’s history, there is evidence of both "Big M" marketing and "little m" marketing.
n200080 [17]

Answer:

Big M

Explanation:

The Big M Marketing is creating value for specific people. creating value here means understanding the peoples needs and motivations and using it to create a product to deliver to the people.

Budweiser is been advertised as the king of beers in america. this symbol has demonstrated its marketing strategy at identifying the peoples needs and thereby creating a value for it customers through its brand.

8 0
4 years ago
The predetermined overhead rate is calculated Blank______. Multiple choice question. after the period is over before the period
Ainat [17]

before the period begins

What is period progresses?

A Progress Payment may be provided for a period of time called a Progress Period that is both less than and included in the Performance Period. 2.22 "Target Reward" refers to the target award, as decided by the Committee in accordance with Section 3.3, payable under the Plan to a Participant for the Performance Period, expressed as a percentage of his or her Base Salary or as a specific monetary amount. 2.23 "Termination of Employment" refers to the end of the employee-employer relationship between an employee and the Company or an Affiliate for any reason, including, but not limited to, terminations due to resignation, discharge, death, disability, or retirement that take place in accordance with the rules that may from time to time be established by the Committee (at its discretion).

Learn more about period progresses with the help of given link:-

brainly.com/question/14759686

#SPJ4

5 0
2 years ago
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