Answer:
c. seller receives cash sooner than if credit is granted directly to the customers
d. may allow seller to increase sales volume
Explanation:
When a customer uses a credit card, the bank that issued the card pays the seller immediately, and later, the bank recovers the money plus interest from the customer.
So this method allows for a faster collection of cash (basically immediatly) than if the seller granted the credit directly to the customer.
Credit cards also allow seller to increase sales volume because many people lack the cash necessary to pay down the full value of the purchase.
Karen is buying a new laptop. She is looking for a light-weight computer. The laptop she purchases is a little heavier than she had originally hoped, but she was willing to accept the extra weight for a computer with a bigger, clearer screen.
Karen made her purchase decision using a compensatory decision rule.
In psychology, compensation is a approach whereby one covers up, consciously or unconsciously, weaknesses, frustrations, goals, or feelings of inadequacy or incompetence in a single life area thru the gratification or (drive toward) excellence in some other area. compensation can cowl up both real or imagined deficiencies and personal or bodily inferiority. fantastic compensations may additionally help one to conquer one's problems. then again, bad compensations do not, which ends up in a strengthened feeling of inferiority.
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Answer:
wP = 114.5 / 514.6 = 0.2225 or 22.25%
Explanation:
The WACC or weighted average cost of capital is the cost of a firm's capital structure. The capital structure of a firm can be made up of one or more of the following components namely debt, preferred stock and common equity. The WACC is normally calculated using the market value of these components. The formula for WACC is,
WACC = wD * rD * (1-tax rate) + wP * rP + wE * rE
Where,
- wD, wP and wE represents the weight of debt, preferred stock and common equity in the capital structure based on the market value
- rD, rP and rE are the cost of debt, preferred stock and common equity respectively.
To calculate the weight that should be assigned to the preferred stock in the calculation of WACC, we need to determine the market value of preferred stock and the market value of the capital structure.
Market Value - Debt = 10000 * 1000 * 1.01 = $10.1 million
Market Value - Preferred stock = 1 * 114.50 = $114.5 million
Market Value - Common equity = 26 * 15 = $390 million
Total MV of capital structure = 10.1 + 114.5 + 390 = $514.6
wP = 114.5 / 514.6 = 0.2225 or 22.25%
Answer:
Increasing visibility on all procurement stages. You can get access to the reports, documents, payments, workflows anytime. Data Security.
Explanation:
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