1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
o-na [289]
3 years ago
6

The Reynolds Corporation buys from its suppliers on terms of 2/19, net 50. Reynolds has not been utilizing the discounts offered

and has been taking 50 days to pay its bills. Ms. Duke, Reynolds Corporation's vice president, has suggested that the company begin to take the discounts offered. Duke proposes that the company borrow from its bank at a stated rate of 17 percent. The bank requires a 10 percent compensating balance on these loans. Current account balances would not be available to meet any of this compensating balance requirement. a. Calculate the cost of not taking a cash discount. (Use a 360-day year. Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.)
Business
1 answer:
harina [27]3 years ago
4 0

Answer:

23.68%

Explanation:

The computation of the cost of not taking a cash discount is shown below:-

Cost of not taking a cash discount = [Discount percentage ÷ (100% - Disc.%)] × (360 ÷ (Final due date - Discount period))

= (2% ÷ 98%) × (360 ÷ (50 - 19))

= 2.04% × 11.61

= 23.68%

Therefore for computing the cost of not taking a cash discount we simply applied the above formula.

You might be interested in
They have each been working​ full-time jobs on a design team for a​ high-tech firm. They decided to approach their manager with
harkovskaia [24]

Answer:

Job sharing

Explanation:

Job sharing here is a technique whereby the two people share a full-time job responsibilities into a part-time roster to finish off the job one person has been doing in a single full-time job. This redesign technique usually occurs where the workers are looking for a way to reduce their workload without quitting the job entirely or done to give more attention to a loved one at home.

7 0
2 years ago
Should the United States acced to the United Nations Law of the Seas without reservations?
grin007 [14]

I think that the answer to this question should be based upon your opinion sorry if you were expecting the actual answer


5 0
3 years ago
As a marketing manager for Kitch-It-Tools, Jim is frustrated with the way his organization markets their kitchen utensils. Curre
Rashid [163]

Answer:

C. Mass Marketing

Explanation:Mass Marketing is a type of marketing where the target is to get the connect with a large number of customers or consumers as possible. Mass Marketing is done through mass media and other marketing channels to ensure that the greatest number of persons are reached to guarantee that the company sale a larger Volume of products or services, this type of marketing has been adopted by many multinational companies.

6 0
3 years ago
Smathers Corp. stock has a beta of 1.23. The market risk premium is 7.00 percent and the risk-free rate is 2.86 percent annually
Schach [20]

Answer:

the company's cost of equity is 11.47 %.

Explanation:

The Company`s cost of equity is the return that is required by holders of Common Stocks.

The Cost can be determined using the <em>Capital Asset Pricing Model</em> (CAPM) as follows :

Cost of Equity = Return on Risk Free Rate + Beta × Return on Market Portfolio

                       = 2.86 % + 1.23 × 7.00 %

                       = 11.47 %.

6 0
3 years ago
Black Corporation declared $50,000 cash dividends to shareholders. The coporation has 4,000 shares of $25-par, 5% preferred stoc
Liono4ka [1.6K]

Answer:

$5,000 will be distributed to preferred stockholders and $45,000 will be distributed among common stockholders.

Explanation:

The accrued dividend on preferred stock based on predetermined rate or amount is known as preferred stock dividend. Preferred stock has priority over common stockholders, It means that dividend will be given to preferred stockholder first.

Preferred stock dividend = 4,000 shares x $25 x 5% = $5,000

Common stock dividend = $50,000 - $5,000 = $45,000

6 0
3 years ago
Other questions:
  • Grason Corporation is preparing a budgeted balance sheet for 2018. The retained earnings balance at December 31, 2017 was $533,5
    12·1 answer
  • What data are collected from consumers to develop a perceptual map for a particular product category?
    8·1 answer
  • Match each type of unfair business practice with its description.
    12·1 answer
  • A company has 10.1 million shares of common stock outstanding, 450,000 shares of 5 percent preferred stock outstanding, and 235,
    8·1 answer
  • Toyota and Honda Shift Production to North America Toyota plans to stop exporting the Lexus RX to North America from​ Japan, bui
    5·1 answer
  • "formalization refers to the extent to which procedures and rules determine the jobs and activities of employees"
    12·1 answer
  • Question 6
    5·1 answer
  • A thief steals an ATM card and must randomly guess the correct three​-digit pin code from a 9​-key keypad. Repetition of digits
    11·1 answer
  • Aspen Integrated Marketing used to have a strict hierarchical structure, with information given only to those who required it. T
    8·1 answer
  • You work in the economic-development department of your city. The mayor asks you to conduct an analysis of a plan to increase pa
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!