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Nimfa-mama [501]
3 years ago
5

18. What is the term used for unscheduled full or partial payment of the principal amount outstanding on a loan before its due d

ate?
Business
1 answer:
vitfil [10]3 years ago
4 0

Answer:

Explanation:

Prepayment is the term used to describe unscheduled repayment of debts either partially or in full before their due date. Prepayment is also the payments of bills such as utilities, invoices and other operating expenses in advance. Extra payments on top of the regular monthly repayment amount is also a prepayment.

Corporates and individuals make prepayments to save on payable interests. Debts, especially short term facilities such as credit cards and overdrafts, attract high-interest rates. The longer they remain unsettled, the more interest will be paid. Making prepayments saves from spending huge amounts on interest.  

Prepayments help improve credit score.  An improved credit score qualifies an individual or a business to borrow at low-interest rates.

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The price of a stock is $55 at the beginning of the year and $50 at the end of the year. If the stock paid a $3 dividend and inf
n200080 [17]

Answer:

Real holding period return = - 6.44% (Approx)

Explanation:

Holding period return = [Dividend + (Price of share ending - Price of share start)] / Price of share start

Holding period return = [3 + (50-55)] / 55

Holding period return = -2 / 55

Holding period return = -0.0363636

Real holding period return = [(1 + Holding period return)/(1 + Inflation)] - 1

Real holding period return = [(1 - 0.0363636)/(1+0.03)]-1

Real holding period return = - 0.06443

Real holding period return = - 6.44% (Approx)

8 0
4 years ago
The service-profit chain is designed to help managers better understand the key linkages in a service delivery system that drive
Illusion [34]
The answer for this question is true
6 0
3 years ago
Which one of the following statements is TRUE? a. A targeted share repurchase can be used to encourage a hostile takeover. b. A
-Dominant- [34]

Answer:

Option b: A targeted share repurchase is when the company purchases stock from one shareholder at a higher price than it offers to other shareholders

Explanation:

Stock repurchase is simply the buying of stock by a company from its stockholders. It is another means or way for a company to distribute value to the stockholders. It is a transactions in which a firm buys back shares of its own stock, thereby decreasing shares outstanding and increasing the stock price.

Repurchase by direct negotiation involves purchasing shares from a major shareholder often at a premium over market price.

Repurchase shares: is a way companies uses cash to buy shares of its own outstanding stock, shares are held and usually resold if company needs to raise money in the future.

6 0
3 years ago
FordTech is a software company whose clients are based in France. The company has formed a team to decide the direction the orga
Tomtit [17]

Answer:

The correct answer is "corporate strategy"

Explanation:

FordTech is a software company whose clients are based in France. The company has formed a team to decide the direction the organization should take over the next five years. The focus of this team is to increase their clientele in Europe. The company is keen on taking advantage of the opportunities and avoiding threats in the changing environment. This team is involved in developing the corporate strategy  for the organization.

Corporate Strategy takes a group of people to take strategic decisions making by looking across all of a firm’s businesses to determine how to create the most value to achieve company objectives while achieving a competitive advantage.

4 0
4 years ago
List and briefly describe the 6 major processes involved in risk management.
Mekhanik [1.2K]
<span>Identify the Risk
</span><span>Analyze the Risk
</span><span>Prioritize the Risk
</span><span>Assign an Owner to the Risk
</span><span>Respond to the Risk
</span><span>Monitor the Risk

</span>
8 0
4 years ago
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