Answer:
d. Provides a guarantee of payment from the buyer, reducing the credit risk to the seller
Explanation:
A letter of credit is a document that guarantees a seller of payment from the buyer. It is drafted and issued by a bank assuring the seller of timely and full payment. A letter of credit is applied mostly in international trade where the buyer and seller hardly meet or know each other.
Banks issue a letter a credit against cash or other securities. Should the buyers fail to make payment, a letter of credit assures the seller that the bank will take responsibility for the payment. Banks usually charge a fee for issuing letters of credit.
Answer:
on municipal bond after tax rate of return = 5 percent
on corporate bond after tax rate of return = 5.44 percent
Explanation:
given data
rates of return = 5% = 0.05
rates of return = 6.4% = 0.064
tax bracket = 15% = 0.15
solution
first we get on municipal bond yield
municipal bond is tax exempt so
as on municipal bond there is no taxes is levied
so that here after tax rate of return will be as 5 percent
and
now we get after tax yield on corporate bond that is
after tax rate of return = rates of return × ( 1 - tax bracket ) .............1
after tax rate of return = 6.4% × ( 1 - 15%)
after tax rate of return = 0.064 × ( 1 - 0.15 )
after tax rate of return = 5.44 percent
Its not b , im trying to figure this out to hope that helps a little
Answer:
Option (b) is correct.
Explanation:
Variable cost = $27.20(1 + 0.02)
= $27.20 × 1.02
= $27.74
Cash fixed cost = annual fixed costs ÷ [annual sales(1 - 0.03)]
= $32,500 ÷ [2,400(1 - 0.03)]
= 13.96
Depreciation = Depreciation ÷ [annual sales(1 - 0.03)]
= $4,400 ÷ [2,400(1 - 0.03)]
= 1.89
Total annual expense per unit:
= Variable cost + Cash fixed cost + Depreciation
= $27.74 + 13.96 + 1.89
= $43.59
Answer:
D) Debit Interest Expense 6,800
Explanation:
To calculate Daylight Donuts' accrued interest at maturity on March 1, 2022 we can use the following formula:
interest expense = amount note payable x interest rate x (months / 12)
interest expense = $170,000 x 8% x (6 / 12) = $170,000 x 8% x 0.5 =$6,800