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2 years ago

The amount the bank charges for use of money is called interest. True False

Business

1 answer:

klemol [59]2 years ago

3 0

True. When you borrow from a bank, you pay back the amount loaned PLUS interest.

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Galvatron Metals has a bond outstanding with a coupon rate of 6.1 percent and semiannual payments. The bond currently sells for

Eva8 [605]

Answer:

After tax cost of debt is 4.16%

Explanation:

The yield on the debt which is pre-tax cost of debt can be computed using the rate formula in excel, which is given as follows:

=rate(nper,pmt,-pv,fv)

where nper is the number of coupon payments,this is calculated as 19*2 since it has a semi-annual coupon interest

pmt is the periodic coupon payment 6.1%/2*$2000=$61

pv is the current price of the bond which is $1933

fv is the face value repayable on redemption $2000

=rate(38,61,-1933,2000)

=3.20%

This is semi-annual yield , annual yield is 3.20%*2=6.40%

After tax cost of debt=6.40%*(1-t)

where t is the tax rate at 35%=0.35

after tax cost of debt=6.40%*(1-0.35)

=4.16%

5 0

2 years ago

A document which shows how much a customer has to pay, for what and by when

blondinia [14]

Answer:

A Bill

Explanation:

A bill is a request for payment. A bill is usually considered from the customer's standpoint. It's common to receive a bill without an invoice, as in a restaurant or retail store. A bill is usually given with the expectation of immediate payment.

5 0

2 years ago

How do sales skimming schemes leave a victim organization's books in balance, - despite the theft of funds?

erastovalidia [21]

The money is skimmed before the transaction is processed. In a casino the casinos winning are moves to a count room during the movement money is removed before being counted.

3 0

2 years ago

One important benefit of a multiparty system over a two-party system is that ____________.

Musya8 [376]

<span>Actually one important benefit of a multiparty system over a two party system is that there will not be any single powerfull person controlling like a king or queen what ever and when ever he or she wants, without considering or taking consent of main important peoples, and also it gives more opinions and options in a multiparty system for the benefit of people.</span>

3 0

3 years ago

Xie Company identified the following activities, costs, and activity drivers for this year. The company manufactures two types o

kirill [66]

Answer:

Handling materials = $6.25 per part

Inspecting product = $600 per batch

Processing purchase = $150 per order

Handling materials = $350 per invoice

Insuring the factory = $7.50 per square feet

Designing packaging = $37,500 per model

Explanation:

Activity rate = Estimated Cost ÷ Estimated Activity

therefore,

Handling materials = $ 625,000 ÷ 100,000 parts = $6.25

Inspecting product = $ 900,000 ÷ 1,500 batches = $600

Processing purchase = $ 105,000 ÷ 700 orders = $150

Handling materials = $ 175,000 ÷ 500 invoices = $350

Insuring the factory = $ 300,000 ÷ 40,000 square feet = $7.50

Designing packaging = $ 75,000 ÷ 2 models = $37,500

6 0

2 years ago