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wolverine [178]
3 years ago
6

A rapidly growing small firm does not have access to sufficient external financing to accommodate its planned growth. Discuss wh

at alternatives the company can consider in order to implement its growth strategy. How can the firm determine the cost of those alternative sources of capital?
Business
1 answer:
monitta3 years ago
3 0

Answer:

Alternatives :

1. Bank Overdraft facility

2.Suppliers Credit

Cost determination :

1. Bank Overdraft facility = Interest rate charged on the facility by the bank

2.Suppliers Credit = Opportunity cost of losing the early settlement discount.

Explanation:

If the company can not access sufficient external financing, consider internal sources such as bank overdraft or suppliers credit.

The cost of bank overdraft is evaluated based on the interest rate charged by the bank whilst the cost of the suppliers credit is determined by considering the opportunity cost of losing the cash discount available.

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Serjik [45]

The answer for Blank 1: C. total value of the money supply

The answer for Blank 2: D. number of citizens.

GDP per capita describes the average economic output that a single citizens had produce in a certain year.

In order to calculate this, we need to find out the total value of the money supply by adding total Consumption, investments, Government spending, and net export. After this, we divide the total value of the money supply with the number of populations in a country to find the average economic output.


6 0
2 years ago
Read 2 more answers
When the sales of a certain brand of diet soda slowed, a national grocery retailer decided to drop the price of that product, wh
Zigmanuir [339]
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3 0
3 years ago
Why does a small difference in economic growth result in a large difference in wealth over time?
larisa [96]

Answer:

The correct answer is the option C: Because the effect of compounding allows growth to build upon previous growth.

Explanation:

To begin with, the term of <em>"Compounding"</em> in economics refers to the situation in which an assets' earnings are reinvested to generate more additional earnings over the pass of time and therefore that in an economy when there is a small growth the investors take advantage of the effect that the compounding has over the situation and use it in order to generate more earning in the future and that is why that the the effect of compounding allows growth to build only upon previous growth.

7 0
2 years ago
How does a bond sale by the fed affect the money supply?
kumpel [21]
A bond sale is a debt investment that is given by an investor to a particular corporate or governmental entity and is payable over a period of time at a variable or a fixed interest rate. It can affect the money supply, or the money of the country, because it encourages debtors to keep loaning from the government to finance their personal interests.
4 0
2 years ago
Read 2 more answers
A company has a process that results in 1,300 pounds of Product A that can be sold for $13.00 per pound. An alternative would be
n200080 [17]

Answer:

If the company process further the units, income will decrease by $600.

Explanation:

Giving the following information:

A company has a process that results in 1,300 pounds of Product A that can be sold for $13.00 per pound.

An alternative would be to process Product A further for $13,600 and then sell it for $23.00 per pound.

We need to determine the result of further processing the product.

Sell as-is:

Effect on income= 1,300*13= $16,900 increase

Continue processing:

Effect on income= 1,300*23 - 13,600= $16,300

It is more profitable to sell the units before further processing.

8 0
3 years ago
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