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Alecsey [184]
3 years ago
7

Fido wants to buy a new car. He will need to get a car loan. Fido decides to wait for a few months until his credit history impr

oves. Which explains whether Fido is making a sensible decision?
A.Fido’s decision is sensible because the selling price of the car should be less in a few months.

B.Fido’s decision is sensible because the cost of the car loan should be less if his credit history improves.

C.Fido’s decision is not sensible because he needs the car right away.

D.Fido’s decision is not sensible because it does not matter if he buys the car now or in a few months.
Business
2 answers:
andriy [413]3 years ago
5 0
Hi there. 

your answer is: <span>Fido's decision is sensible because the cost of the car loan should be less if his credit history improves.

hope this helps! :3</span>
Rom4ik [11]3 years ago
4 0

your answer is: Fido's decision is sensible because the cost of the car loan should be less if his credit history improves.


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Answer:

Expected return on the market = 11.58%

Explanation:

MRP = Market risk premium

RFR = Risk free rate

ERM = Expected return on market

MRP = \frac{0.155-0.128}{1.45-1.14}=\frac{0.027}{0.31}= 0.0871

MRP = 8.71%

RFR = 0.155 - (1.45*0.0871) = 0.155 - 0.126295 = 0.0287

RFR = 2.87%

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Swifty Company issued $456,000 of 10%, 20-year bonds on January 1, 2020, at 101. Interest is payable semiannually on July 1 and
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Answer:

Swifty Company

a) Issuance of the bonds:

Debit Cash Account $460,560

Credit Bonds Payable $456,000

Credit Bonds Premium Amortization $4,560

To record the bonds issue and related premium.

b) Payment of interest and related amortization on July 1, 2020:

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c) Accrual of interest and the related amortization on December 31, 2020:

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Explanation:

The total cash received from the bonds issuance is $456,000 x 101% = $460,560.  This amount includes the bonds premium amounting to $4,560, which is the difference between the amount received and the actual value of the bonds.  This amount will be amortized on a straight-line basis over 20 years, semi-annually at $114.

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Opportunity cost also known as the alternative forgone, can be defined as the value, profit or benefits given up by an individual or organization in order to choose or acquire something deemed significant at the time.

Simply stated, it is the cost of not enjoying the benefits, profits or value associated with the alternative forgone or best alternative choice available.

For example, if you decide to invest resources such as money in a food business (restaurant), your opportunity cost would be the profits you could have earned if you had invest the same amount of resources in a salon business or any other business as the case may be.

In this scenario, Farmer Jane's opportunity cost of producing corn is lower than Farmer John's, therefore, she has a comparative advantage in producing corn.

Comparative advantage in economics is the ability of an individual or country to produce a specific good or service at a lower opportunity cost better than another individual or country.

Hence, the comparative advantage gives an individual or country a stronger sales margin than their competitors as they are able to sell their specific products or render their peculiar services at a lower opportunity cost.

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