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3 years ago

Subprime lending means lending to borrowers and charging interest that is below the current prime interest rate.

Business

1 answer:

STALIN [3.7K]3 years ago

8 0

Answer:

False

Explanation:

Subprime lending means lending to borrowers and charging interest that is above the current prime interest rate.

The current prime interest refers to the rate offered to the best credit rated customers based on their credit history. This rate is lower as it is meant to be an attraction for the customers who are good credit payers and takers.

The sub-prime lending refers to giving loans at a rate higher than current prime interest rate to the borrowers who are lower on credit rating. This lending takes on higher risk and hence thereby charges higher interest from the borrowers.

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Anew Health Care Company reports net income of $210,000 and Depreciation Expense of $24,000 for the year ending December 31, 20

Fiesta28 [93]

Answer:

$344,000

Explanation:

2018 2019 Change

Amount in $ Amount in $ Amount in $

Inventory 99,000.00 72,000.00 27,000.00 Total current asset 289,000.00 248,000.00 41,000.00 Accounts payable 52,000.00 42,000.00 (10,000.00)

Salaries payable 39,000.00 91,000.00 52,000.00

Amount in $

Net income 210,000.00

Add depreciation 24,000.00

Changes to current assets and liabilities

Inventory 27,000.00

Total current asset 41,000.00

Accounts payable (10,000.00)

Salaries payable 52,000.00

Net cash flows from operating activities 344,000.00 

3 0

3 years ago

What industry cannot rely on estimation

jeka94

There is no industry which can not relay on estimation, all industries needs estimation.

The two primary categories of this profession are construction and manufacturing, according to the Bureau of Labor Statistics. It states that more than half of all cost estimators work in the construction industry, where they may further specialize in projects for homes, businesses, industries, or the government.

Cost estimation aids in setting the project budget, planning the required work, and managing new resources. Cost estimates are also of the utmost importance when trying to win over new clients. Before starting actual building, property owners also utilize cost estimates to evaluate the viability of their projects.

Learn more about estimation here

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7 0

2 years ago

The beta of a security is calculated as: (_____ of a security’s return with the return on the market portfolio / _______).

spayn [35]

Answer:

Beta of a security is the covariance of the security return with the return on the market portfolio divided by variance of the market return.

The correct answer is C

Explanation:

Beta of a security is calculated as covariance (Ri,Rm) divided by Variance of the market return. Beta is used for measuring the systematic risk of a security.

5 0

3 years ago

Suppose the rate of return on short-term government securities (perceived to be risk-free) is about 5%. Suppose also that the ex

Natalka [10]

Answer:

The expected rate of return on the market portfolio is 14%.

Explanation:

The expected rate of return on the market portfolio can be calculated using the following capital asset pricing model (CAPM) formula:

Er = Rf + B[E(Rm) - Rf] ...................... (1)

Where:

Er = Expected rate of return on the market portfolio = ?

Rf = Risk-free rate = 5%

B = Beta = 1

E(Rm) = Market expected rate of return = 14%

Substituting the values into equation (1), we have:

Er = 5 + 1[14 - 5]

Er = 5 + 1[9]

Er = 5 + 9

Er = 14%

Therefore, the expected rate of return on the market portfolio is 14%.

7 0

3 years ago

Which of the following elements of the marketing communications mix refers to any paid form of nonpersonal presentation and prom

Lesechka [4]

Answer:

A. Advertising.

Explanation:

Advertising is an elements of the marketing communications mix refers to any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor via print, broadcast, network, electronic, and display media.

In other words, it is a means of promoting products or services of the sponsors.

Advertising is also a means of increasing the sales or consumption of goods and services by the sponsors through the product image, otherwise termed as "brand" with specific characteristics in the minds of the consumers.

Advertising can be done through the following means:

1. Newspaper

2. Radio

3. Television

4. Outdoor and Transit

5. Direct mails

6. Online.

7. Magazine

7 0

3 years ago