Answer:
The store manager must decide to buy 3
Explanation:
Given that:
- The first: $200 a year
- The second $150
- The third $75,
- The fourth $50
- Interest rate is 12 percent
- Investment: $500
As we know that the rate of return will be: Income / Investment
So the rate of return of:
- The first: $200 / $500 = 0.4 = 40%
- The second $150 / $500 = 0,3 = 30%
- The third $75 / $500 = 0.15 = 15%
- The fourth $50 / $500 = 0.1 = 10%
Only three rug cleaners have the rate of return greater than the interest rate so the store manager must decide to buy 3
<span>Major reasons for consumer default on loans can include: missed payments, either known or unknown. This has a negative effect on the consumer's credit score and can limit their chances to take out new lines of credit. A continuation of missed payments results in default. High interest loans are also a major reason for default.</span>
Answer:
C
Explanation:
The shareholder-debtholder conflict usually arises because shareholders would prefer the firm to engage in more risky business activities. This is because this has the potential to increase the income of the firm and as a result, the wealth of shareholders.
On the other hand debtholders would not want the firm to engage in risky activities because it might negatively affect the firm's ability to make its schedules payments to debtholders.
In order to protect themselves, debtholders usually draft a deb covenant which contains allowable activities of the firm
Answer:
Correct option is (a)
Explanation:
For any venture to be successful, it starts with a vision or idea. In this case, Greg is confident that he will be able to convince US Car manufacturers to purchase his fuel efficient car even though his friends were doubtful if his product will be accepted by car manufacturers.
He also had a clear vision as his goal was to make US economy energy efficient. Vision is to have a positive outlook regarding future.
It can be inferred that Greg has both vision and confidence
Answer:
0.69
Explanation:
From the question above on December 31, 2018 a company has an assets of $29 billion and stockholders equity of $22 billion.
On December 31, 2019 the same company recorded an assets of $55billion and stockholders equity of $17billion
Inorder to calculate the debt-to-assess ratio the first step is to find the amount of liabilities
Liabilities= Assets-Stockholders equity
Assets= $55 billion
Stockholders equity= $17 billion
= $55billion-$17billion
= $38 billion
Therefore, the debt-to-assets ratio can be calculated as follows
Debt-to-assets ratio= Total liabilities/Total Assets
= $38 billion/ $55 billion
= 0.69
Hence on December 31, 3019 the debt-to-assets ratio is 0.69
