EAR = (1 + periodic interest rate)^N - 1
<u>9.25 % Quarterly %</u>
EAR = 
= 0.09575 or 9.58%
<u>16.75 Monthly %
</u>
EAR = 
= 0.1809766 or 18.10%
<u>15.25 Daily %
</u>
EAR = 
= 0.1647053 or 16.47%
<u>11.25 Semiannually %</u>
EAR = 
= 0.115664 or 11.57%
Answer:
I. Capital expenditures
III. Taxes
IV. Working capital requirements
Explanation:
Free cash flow = EBIT*(1 - tax rate) + depreciation - changes in net working capital - capital expenditure
Answer:
Promotional expenses are those expenses that a company bears to make its product more aware to the consumers. Maturity stage of product life cycle means the product has already been accepted wide spread and is at its peak in respect of sales but will eventually slow down in growth.
Therefore, promotional activities at the maturity stage are done by companies so that the existing customers would not shift their demand to any of other substitute product.
Explanation:
Answer:
Few controls can be used to prevent or detect personal purchases on company's credit cards.
Explanation:
Following controls can be taken to prevent or detect personal purchases on company's credit cards:
1. One should make sure that the company policy clearly forbids all purchases that are personal with company funds.
2. Same employee should not be allowed to originate purchases and then approve them too.
3. Controls can be installed to know if there are multiple purchases under employees approval limits.
4. Also, there should be a maximum limit of purchase for each employee.
5. Any invoice which is not related to company should be checked regularly.
