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Aleks [24]
3 years ago
7

Your friend just opened their first credit card.What advice would you give them before they start making purchases?

Business
2 answers:
Nady [450]3 years ago
7 0

To get at least one small thing under their own name, and to try not to use it as much or else they will be in debt for some time.

Hope this helps you out!! (:

ddd [48]3 years ago
6 0

Answer: Try not to use the credit card too much cause they will be in a LOT of debt if they do use it a lot.

Explanation:

Just did it on everfi

You might be interested in
Harold's caters to the clothing needs of men, manufacturing two different lines of fashion based on the purchasing power of its
Pavel [41]

Answer:

<u>Demographic</u>

Explanation:

Harry's caters to the clothing needs of men, manufacturing two different lines of fashion based on the purchasing power of its customer . One product line caters to the needs pf affluent , middle-aged men , and the other line targets younger , up -and - coming professionals . Harry's most likely segments the consumer market is based on<em><u> demographic variables.</u></em>

<em>The statistical data of the population of the people is known as demographics . Demographics contain age , gender , income etc.</em>

Demographic is important for the company as it help the company to tell about how to market and how to develop the brand. It helps in telling the behavior of the customer towards the product means whether the people liking the product or not liking the product . It is consider as the best way to reach to the people and know about their preference for the product.

8 0
3 years ago
Eric receives a portion of his income from his holdings of interest-bearing U.S. government bonds. The bonds offer a real intere
MArishka [77]

Solution :

Given :

The bonds offer a \text{real interest rate} of 4.5% per year

Tax rate = 10% = 0.10

Inflation rate = 2

\text{Nominal interest rate} = \text{real interest rate} + \text{inflation rate}

\text{Nominal interest rate} = 2 + 4.5

                                   = 6.5

\text{After tax nominal rate} = \text{Nominal interest rate} $\times (1-\text{tax rate})$

\text{After tax nominal interest rate} = $6.5 \times (1-0.10)$

                                                  $=6.5 \times 0.90$

                                                 = 5.85

After tax real interest rate = \text{after tax nominal rate} - \text{inflation rate}

                                           = 5.85 - 2.0

                                            = 3.85

\text{Inflation rate} = 7.0

\text{Real interest rate = 4.5}

\text{Nominal interest rate} = \text{real interest rate} + \text{inflation rate}

                                   = 7 + 4.5

                                  = 11.5

\text{After tax nominal interest rate} = \text{Nominal interest rate} $\times (1-\text{tax rate })$

                                                  $=11.5 \times (1 - 0.10)$

                                                  $=11.5 \times 0.90$

                                                = 10.35

\text{After tax nominal interest rate} = 11.5 x (1 - 0.10)

                                          = 11.5 x 0.90

                                         = 10.35

\text{After tax nominal interest rate} = \text{after tax nominal rate} - \text{inflation rate}

                                           = 10.35 - 7.0

                                          = 3.35

Putting all the value in table :

\text{Inflation rate}    Real interest  Nominal interest  After tax nominal  After tax  

                                  rate                rate               interest rate       interest rate

2.0                             4.5                  6.5                        5.85                   3.85

7.0                              4.5                11.5                         10.35                3.35

Comparing with the \text{higher inflation rate}, a \text{lower inflation rate} will increase the after after tax real interest rate when the government taxes nominal interest income. This tends to encourage saving, thereby increase the quantity of investment in the economy and the increase the economy's long-run growth rate.

7 0
3 years ago
Duffert Industries has total assets of $940,000 and total current liabilities (consisting only of accounts payable and accruals)
Studentka2010 [4]

Answer:

ROE = 13.04%

ROIC = 7.83%

Explanation:

Data provided in the question:

Total assets = $940,000

Total current liabilities = $130,000

Interest rate on its debt = 8%

Tax rate = 40%

The firm's basic earning power ratio = 14%

Debt-to capital rate = 40% = 0.40

Now,

Basis earning power = EBIT ÷ Total Assets

or

EBIT = Basis earning power × Total assets

= 14% × $940,000

= $131,600

Total Assets  = Total Debt + Total Equity + Total Current Liabilities

$940,000 = Total Debt + Total equity + $130,000

Debt + Equity  = $940,000 - $130,000

= $810,000

Debt to capital ratio = Debt ÷ [ Debt + Equity ]

0.40 = Debt ÷ $810,000

or

Total Debt = $324,000

Thus,

Debt + Equity  = $810,000

or

$324,000 + Equity = $810,000

or

Equity = $810,000 - $324,000

= $486,000

Interest = 8% of Debt

= 0.08 × $324,000

= $25,920

Taxes = 40% of [ EBIT - Interest ]

= 0.40 × ($131,600 - $25,920 )

= $42,272

Therefore,

ROE = [ EBIT - interest - Taxes ] ÷  Equity

= [$131,600 - $25,920 - $42,272 ] ÷ $486,000

= 0.1304

= 13.04%

ROIC = [ EBIT - interest - Taxes ] ÷ Total capital

= [$131,600 - $25,920 - $42,272 ] ÷ [Debt + Equity]

= [$131,600 - $25,920 - $42,272 ] ÷ $810,000

= 0.0783 = 7.83%

5 0
2 years ago
Your bank is offering you an account that will pay 20 % interest in total for a​ two-year deposit. Determine the equivalent disc
Crank

Answer: a. 0.042 b. 0.086 c. 0.00692

Explanation:

NOTE: Convert months to years. So 24 months = 2 years.

a. Six months

Months to year conversion gives: 6months/24months as 1/4 years

= (1 + 18%)^ 1/4 — 1 x 100%

= 1.042 — 1

= 0.042

Equivalent Discount Rate = 0.042

b. One year

12months/24months as 1/2 years

= (1 + 18%)^1/2 — 1 x 100%

= 0.086

Equivalent Discount Rate = 0.086

c. 1 month

1month/24months as 1/24 years

= (1 + 18%)^1/24 — 1 x 100%

= 0.00692

6 0
3 years ago
Which one of the following is an example of systematic risk? Multiple Choice Investors panic causing security prices around the
Rus_ich [418]

Answer:

Multiple Choice Investors panic causing security prices around the globe to fall precipitously

3 0
3 years ago
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