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
stiks02 [169]
3 years ago
14

A U.S. exporter sells $150,000 of furniture to a Latin American importer. The exporter requires the importer to obtain a letter

of credit. When the bank accepts the draft, the exporter discounts the 120-day note at a 5.25 percent discount. What is the exporter's true effective annual financing cost?
Business
1 answer:
grandymaker [24]3 years ago
6 0

Answer:

5.52%

Explanation:

Cost of Furniture= $150,000

discount= 5.25% (120-day note)

To get the exporter's true effective annual financing cost, we have:

150,000*[1-(0.0525*120/360)] = 147,375

=(150,000/147,375) 365/120-1 = 5.52%

Therefore, the exporter's true effective annual financing cost is 5.52%

You might be interested in
The federal government wants more people to buy hybrid or electric cars. currently, they are more expensive than cars fueled by
zavuch27 [327]
<span>Government encourages people to buy hybrid or electric cars even though it is more expensive than the fuelled gas / diesel cars. With this the government gives financial incentives to people who will buy hybrid cars. With this plan it will lessen the pollution and it will also give benefit to the car manufacturers.</span>
7 0
3 years ago
Frictional unemployment: Multiple Choice 1) refers to unemployment caused by friction between labor and management. 2) comes fro
koban [17]

Answer:

2) comes from people entering the labor force and changing jobs.

Example of frictional unemployment maybe someone quitting their job and searching for a new one.

Explanation:

6 0
3 years ago
Organization that offer products to their customers to earn a profit are known as?
Alexus [3.1K]

An organization that offer goods and services to customers to earn a profit are known as, for profit organizations. A for profit organization is a organization that has a goal to earn profit from their customers.

7 0
3 years ago
Read 2 more answers
T&amp;P Corporation is a transnational company with four distinct businesses, including a national music and video store chain,
Aleksandr [31]

Answer: Related diversification

Explanation:

The corporate-level strategy that T&P appear to follow is related diversification. Related Diversification is a situation that comes into place when there is an expansion or an addition of a company's existing production line.

In this scenario, we are informed that T&P is in the process of acquiring another company, its major music store rival ReBop Records. This will lead to an expansion of the production line of T&P.

Therefore, the corporate-level strategy that T&P appear to follow is Related diversification.

6 0
3 years ago
What is the difference between the work of an auditor and finance manager? ​
cupoosta [38]

Answer:

Accountants and finance managers both work with clients and businesses to improve their finances. However, finance managers supervise all financial aspects of a business over a long period of time, while accountants focus on managing financial records and taxes.

7 0
3 years ago
Other questions:
  • Parenthetical citations are _____.
    6·1 answer
  • Scott Incorporated has been in business for several months. Because of increased competition in the region for part​ adapters, t
    15·1 answer
  • Coy, Inc. initially issued 250,000 shares of $1 par stock for $1,250,000 in 2019. In 2020, the company repurchased 25,000 shares
    13·2 answers
  • The method involves placing money in separate packets to meet particular expenses.
    5·1 answer
  • Luis is going to receive $20,000 six years from now. Soo Lee is going to receive $20,000 nine years from now. Which one of the f
    14·1 answer
  • What price will be paid for a u.s. treasury bond with an ask price of 135:20?
    13·1 answer
  • A company that makes fireplace mantles uses computer modeling in order to ensure that the process used makes the most efficient
    15·1 answer
  • Wellington Corp. has outstanding accounts receivable at year end totaling $6,500,000 and had sales on credit during the year of
    15·1 answer
  • Ava School of Learning obtained a charter at the start of the year that authorized 50,000 shares of no-par common stock and 20,0
    15·1 answer
  • What is it called when one power controlled the trade exports?
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!