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wlad13 [49]
3 years ago
8

Biochemical Corp. requires $720,000 in financing over the next three years. The firm can borrow the funds for three years at 10.

20 percent interest per year. The CEO decides to do a forecast and predicts that if she utilizes short-term financing instead, she will pay 8.50 percent interest in the first year, 12.90 percent interest in the second year, and 9.75 percent interest in the third year. Assume interest is paid in full at the end of each year.
Required:
a. Determine the total interest cost under each plan.
b. Which plan is less costly?

i. Short-tem variable-rate plan
ii. Long-term fixed-rate plarn
Business
1 answer:
Brrunno [24]3 years ago
6 0

Answer:

Long-term fixed-rate plan-$220,320.00  

Short-term variable-rate plan-$224,280.00  

The long-term fixed-rate plan is less costly as it has a lower interest expense

Explanation:

Total interest under the first plan=principal amount*interest rate*3 years

principal amount is $720,000

interest rate is 10.20%

total interest expense=$720,000*10.20%*3=$220,320.00  

Interest expense under second plan=($720,000*8.50%)+($720,000*12.90%)+($720,000*9.75%)=$224,280.00  

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adell [148]

Answer:

Be tailored to the specific needs of an individual decision maker.

Explanation:

A managerial account report is more likely to be tailored to the specific needs of an individual decision maker. This is usually In comparison with a financial statement prepared in conformity with generally accepted accounting principles,

The managerial account lays its focus on specific needs which the decision maker needs.

It doesn't do any of theses;

Focus upon the operating results of the most recently completed accounting period neither does it View the entire organization as the reporting entity.

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3 years ago
Write 5-7 words that are similar to marketing. What words come to your mind when you think of marketing?
Gwar [14]

Answer:

sell, retail, trade, advertise, promote, buying,

Explanation:

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3 years ago
Patty Corporation holds 75 percent of Slider Corporation's voting common stock, acquired at book value. The fair value of the no
Marina86 [1]

Answer:

1) d. $175,000

2) b. $156,250

Explanation:

1. The computation of net income for 20X9 under the treasury stock method is shown below:-

Net income for 20X9 under the treasury stock method = Janet Operating income + Slider operating income

= $100,000 + $75,000

= $175,000

2. The computation of income assigned to the controlling interest for 20X9 is shown below:-

income assigned to the controlling interest for 20X9 = Janet Operating income + (Slider operating income × Remaining percentage)

= $100,000 + ($75,000 × 75%)

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3 years ago
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Korvikt [17]
I would assign each roommate to wash their own dishes after they eat so you don’t get one big pile that no one wants to do.

You will have to come up with some kind of motivation otherwise, nothing will get done, suggestions are:

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5 0
3 years ago
If a firm's variable cost per unit estimate used in its base-case analysis is $50 per unit and they anticipate the upper and low
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Based on the base-case analysis of the firm's variable cost and the upper bounds anticipated, the worst case for variable cost per unit is $52.50.

<h3>What is the worst case for variable costs?</h3>

The worst case scenario for expenses would be a situation where they are higher instead of lower.

This means that the upper bound of the variable cost will be applied to find the worst case scenario:

= Base case analysis amount x (1 + upper bound)

= 50 x (1 + 5%)

= $52.50.

Find out more on variable costs at brainly.com/question/5965421.

8 0
2 years ago
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