A company will pay interest based on its credit rating and the length of time over repayment is scheduled to occur (1-year, 5- years, or 10 years).
<h3>How is interest decided?</h3>
- It is based on various risks such as credit risk and maturity risk.
- Credit risk of a company is shown in its credit rating.
- The maturity risk increases as the length of time to repayment increases.
The interest paid will therefore be dependent on the credit rating of the company and the term of the loan that it took out as these show different types of risk.
In conclusion, option A is correct.
Find out more on maturity risk at brainly.com/question/24780094.
Answer:
CMR: 52% --> each dollar of sales generates 52 cent of contribution
VCR: 48% --> 48 cent per dollar of sales are cost
BEPu: 10,000 units will pay up the cost to purchasethis units and the fixed cost for the business.
BEPs: $ 250,000 in sales pay up both, fixed and varible operating cost.
Explanation:
selling price per hat: $ 25
variable cost per hat: $ 12
Contribution per unit $ 13
Contribution Ratio:
13/25 = 0.52
Variable cost Ratio:
12/25 = 0.48
Fixed cost: 130,000
Break even point:
dollars of sales BEP: 250,000
units sold to pay up variable and fixed cost: 10,000
Answer:
hospitals, highways, schools
Explanation:
A municipal bond is a type of debt security made by government entities in order to finance <em>capex </em>(capital expenditures), mainly for the construction of hospitals, highways, schools.
They represent loans that investors give to such government entities and they are usually exempt from the usual taxes on building such things.
Answer:
C. 30 comma 000 units
Explanation:
Inventory to be produced = Sales +ending inventory - Beginning inventory
= 26,000 + 8,000 -4,000
=30,000 Units (Answer is C. 30 comma 000 units ).
Answer:
Check the following calculations.
Explanation:
C(q) = 50+0.20q+0.0800q2
MC(q)=0.20+0.160q
In the long run market will be in equilibrium when P=MC=ATC=LRAC=LRMC
where LRAC=long run average cost curve
LRMC=long run marginal cost curve
ATC=average total cost
noe total cost C(q)= 50+0.20q+0.0800q2
therefore ATC=C(q)/q
= 50/q + 0.20 + 0.0800q
therefore in long run MC=ATC
0.20+0.160q=50/q + 0.20 + 0.0800q
on solving q=25
therefore P=ATC=MC=0.20+0.160q
=0.20+0.16*25
P = 4.20
