The prime rate is the base rate for any financial transaction. The prime rate is considered for each type of lending instruments by the bank. bank add a margin % over the prime rate and offer loan/instrument at the increased rate.
In the given case, the BestBank's Visa credit card discloses an A.P.R. of "Prime Rate + 5.74% to Prime Rate + 22.74%, which means the A.P.R is calculated on the basis of Prime rate and any change in prime rate will directly affect the A.P.R.
The Prime Rate has increased from 3.25% to 4.25%, it means the increase of 1%. Hence the A.P.R. Shall also increase by 1%.
Hence the correct answer is:
b. Increase in A.P.R by 1%
Answer:
$88,920
Explanation:
capitalized interest = weighted average accumulated expenditure for the year x interest rate of the loan = $889,200 x 10% = $88,920
Capitalized interest can be added to the basis of the new building that is being constructed. This way, the building's depreciable value will increase.
In my opinion, i think this happens because different majors can you get different jobs, where people are making different amounts of money! so if you had a education degree, it would take longer to pay it “off” verses say a law degree! hope that kinda helped :)
Answer:
Small individual investors will benefit the most.
Explanation:
From the case given, it can be established that small individual investors represent the bulk of shareholders or business owners.
Also, from Smith Jones stock, we see that Pension and Mutual Fund constitute a bulk in the share position, and the direct intervention of shareholders motivate the management.
From the foregoing analysis, the shareholders holders have thus seek to incorporate corporate governance in the organization as a tool to reduce the agency problem between business owners and management. By this, management objectives and the shareholders could be aligned. The business owners singular objective is the profit maximization of their wealth, while the management is interested in their job security, status, mutual funds, pension and all. Since this objective of management has been duly taken care of by the shareholders, it is believer that this will boost the management morale and ultimately improve their performance. The result is thus increase in organisational performance with resultant growth in profit, share price and returns from the business. These are benefits to the individual investors.
Answer:
The correct answer is B.
Explanation:
Giving the following information:
Travel Book
Sales= $164,000
Cost of goods sold= (67,000)
Contribution margin= 97,000
Order and delivery processing (25,000)
Net income= 72,000
Rent and allocated corporate costs remain constant in both decisions (drop or not). Therefore, they are irrelevant.
<u>Now, if the travel book product line was discontinued, the company's net income would have decreased by $72,000</u>
