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ELEN [110]
3 years ago
14

Monthly Payments and Finance Charges. Kimberly Jensen of Storm Lake, Iowa, wants to buy some living room furniture for her new a

partment. A local store offered credit at an APR of 16 percent, with a maximum term of four years. The furniture she wishes to purchase costs $4,800, with no down payment required. Make the following calculations:
Business
1 answer:
Alenkinab [10]3 years ago
8 0

Jensen needs to pay 8691.07$ to clear off her debt at the end of 4 years

Explanation:

Step by step solution-

Details as given in the question-

Purchase cost of furniture- 4800$

Term of credit- 4 years

Annual percent rate charged- 16%

Condition- No down payment done at the beginning

Amount needed to be re-payed at the end of the credit term  

We know that

Amount= Principal*(1+rate/100) ^time (for compounded interest rate type)

Substituing the values of principal as purchase cost, rate and time

Amount= 4800*(116/100)⁴

Amount needed to be re-payed to ward off the credit = 8691.07$  

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Look in a recent issue of The Wall Street Journal at "NYSE-Composite Transactions."a. What is the latest price of IBM stock? b.
nydimaria [60]

Answer:

A) $191.08

B)  The annual dividend = $0.85 per share

     dividend yield = 1.78%

C) 3.14%

D) 13.74

E) $13.91

F) IBM's P/E  at 13.74 is higher than Exxon Mobil P/E at 11.29

G) The possible reasons for the difference in P/E is due to the difference in EPS earned by each company and also the difference in stock price of each company's stock

Explanation:

Referring the the recent issue of the wall street Journal at NYSE-Composite Transactions

A) The Latest price of IBM stock = $191.08

B)  What are the annual dividend payment and the dividend yield on IBM stock

The annual dividend = $0.85 per share

dividend yield = 1.78%

C) calculate what the yield will become if yearly dividend is moved up to $1.50

first we find the price per share

price per share = annual dividend per share / current dividend yield

                         = 0.85 / 1.78%  = 0.85 / 0.0178 = $47.75

since we now have the price per share value we can now calculate the dividend yield

dividend yield = annual dividend / price per share

                       = $1.50 / $47.75 =  0.0314

                       = 3.14 %

D) Calculate the P/E on IBM stock

 = 13.74 times as it was traded for the last 12 months

E) calculate IBM's earnings per share using P/E

 earnings per share = Price / P/E

 Latest  price of IBM stock = $191.08

  P/E = 13.74

 earnings per share =  191.08 / 13.74  = $13.91

F) IBM's P/E  at 13.74 is higher than Exxon Mobil P/E at 11.29

G) The possible reasons for the difference in P/E is due to the difference in EPS earned by each company and also the difference in stock price of each company's stock

7 0
3 years ago
In order to make sure that audiences can correctly identify your mood and attitude during speech, it is necessary to make sure y
BabaBlast [244]
The correct answer for the question that is being presented above is this one: "c. Intonation." <span>In order to make sure that audiences can correctly identify your mood and attitude during speech, it is necessary to make sure you have correct intonation.</span>
Here are the following choices:
<span>a. Enunciation
b. Pronunciation
c. Intonation
d. Elucidation</span>
5 0
2 years ago
Read 2 more answers
Your boss has asked you to calculate the profitability ratios of Cold Goose Metal Works, Inc. and make comments on its second-ye
Alinara [238K]

Answer:

Gross Margin % 59.2% 53.8%

 compares gross profit to sales revenue  

 

Ne income Margin 32.0% 28.9%

 compares net income to sales revenue  

 

ROA return on assets 10.8% 12.3%

net earnings relative to the company’s total assets.  

 

ROE return on equity 32.5% 23.1%

net income relative to stockholders’ equity,  

Explanation:

Net Sales                                                         3,810,000 3,000,000

Operating costs less depreciation/amortization 1,365,000 1,267,500

Depreciation and amortization                            190,500 120,000

Total Operating Costs                                        1,555,500 1,387,500

Operating Income (or EBIT)                               2,254,500 1,612,500

Less: Interest                                                           225,450 169,313

Earnings before taxes (EBT)                               2,029,050 1,443,187

Less: Taxes (40%)                                                   821,620 577,275

Net Income                                                           1,217,430 865,912

 

assets 11,277,600 7,050,000

Equity 3,750,000 3,750,000

 

Gross Margin % 59.2% 53.8%

 compares gross profit to sales revenue  

 

Ne income Margin 32.0% 28.9%

 compares net income to sales revenue  

 

ROA return on assets 10.8% 12.3%

net earnings relative to the company’s total assets.  

 

ROE return on equity 32.5% 23.1%

net income relative to stockholders’ equity,  

8 0
3 years ago
What does deficit spending require a government to do?
Kruka [31]

Answer:

c. TAKE ON DEBT

Explanation:

5 0
3 years ago
Read 2 more answers
Select the correct answer.
Mademuasel [1]

Answer:

C.earning college credits in high school.

Explanation:

The other answers are all negative and in the question it says ''a benefit''.

Hope this helps! Please mark brainliest!

3 0
2 years ago
Read 2 more answers
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