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3 years ago

A company has the following loan activity—Additional loan from bank: $19,000; Ending cash

Business

1 answer:

Bingel [31]3 years ago

3 0

Answer:

Preliminary cash balance = - $13,400.

Explanation:

We know,

Cash at hand = Preliminary cash balance + Additional borrowings from bank.

Given,

Cash at hand = $5,600

Additional borrowings from bank = $19,000

Putting the values into the formula, we can get

Cash at hand = Preliminary cash balance + Additional borrowings from bank

Or, $5,600 = Preliminary cash balance + $19,000

Or, $5,600 - $19,000 = Preliminary cash balance

Or, Preliminary cash balance = - $13,400.

Therefore, the company had no cash at the beginning; rather, they had to use other people's money.

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1 year ago

Dee's made two announcements concerning its common stock today. First, the company announced that the next annual dividend will

amid [387]

Answer:

The value of the stock at the given discount rate is $9.5

Explanation:

Here, we are interested in calculating the value of the stock at the given discount rate.

To do this, we employ a mathematical formula;

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According to the question, we identify the following;

Expected dividend = $1.58

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3 years ago

All companies operate in a broad ______-environment that is made up of six components, including political factors and technolog

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Answer:

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Explanation:

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2 years ago

In 1975, interest rates were 7.85 % and the rate of inflation was 12.3 % in the United States. What was the real interest rate

Georgia [21]

Answer:

Since the real rate of interest is negative, this means that the purchasing power of the savings have decreased over the year.

Explanation:

Data provided:

Interest rates = 7.85 %

The rate of inflation = 12.3 %

Now,

The Real interest rate is calculated as :

Real interest rate = Nominal interest rate - Inflation rate

on substituting the respective values, we get

Real interest rate = 7.85% - 12.3%

The real interest rate = - 4.45%

Here,

Since the real rate of interest is negative, this means that the purchasing power of the savings have decreased over the year.

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3 years ago

The price of baseballs, a complement to baseball bats, increases at the same time the price of aluminum, an input to baseball ba

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Answer:

The price of baseball bats (a complementary good) increased

If the price of a complementary good increases, this would result in a decrease in demand for baseballs.

Explanation:

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2 years ago