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4 years ago

Making a minimum payment:

1 answer:

5 0

Making the total minimum payment each month means you avoid a late payment fee and ensures you can keep using your card. This is the defenition of making a minimum payment so I would go with answer A

You might be interested in

What does purchasing insurance for a business reveal about the business owner’s attitude toward financial risk?

Simora [160]

It shows that the owner acknowledges the financial risks and is willing to pay every month to transfer the risk to an insurance company.

8 0

3 years ago

15-10 A firm has 60,000 shares whose current price is $45.90. Those stockholders expect a return of 14%. The firm has a 3-year l

krek1111 [17]

Answer:

before taxes:

WACC 8.74959%

after a 21% tax-rate:

WACC 7.23587%

Explanation:

Equity: 60,000 x $45.90 = 2,754,000

Liabilities: 1,900,000 + 22,000 x 925 = 22,250,000

Value: 25,004,000

We solve for weights:

Ew = 2,754,000 / 25,004,000 = 0,1101423772196449

Lw = 22,250,000 / 25,004,000 = 0,8898576227803551

Cost of debt will be the market value rate of the bond That is the rate at which the future coupon payment and maturity matches the market price of the bond

we solve this using excel goal seek:

$C \times \frac{1-(1+r)^{-time} }{rate} = PV\\$

C 35.00

time 20

rate 0.040545327

$35 \times \frac{1-(1+0.0405453269606019)^{-20} }{0.0405453269606019} = PV\\$

PV $473.3728

$\frac{Maturity}{(1 + rate)^{time} } = PV$

Maturity $1,000.00

time 20.00

rate 0.04055

$\frac{1000}{(1 + 0.0405453269606019)^{20} } = PV$

PV 451.6270

PV c $473.3728

PV m $451.6270

Total $924.9998

a semiannual rate of 0.04055 is the market rate thus, cost of debt is

0.04055 x 2 = 0.081

Now we can solve for the WACC without taxes:

$WACC = K_e(\frac{E}{E+D}) + K_d(1-t)(\frac{D}{E+D})$

Ke 0.14000

Equity weight 0.1101

Kd 0.081

Debt Weight 0.8899

t 0

$WACC = 0.14(0.1101) + 0.081(1-0)(0.8899)$

WACC 8.74959%

wiht taxes of 21%

t 0.21

$WACC = 0.14(0.1101) + 0.081(1-0.21)(0.8899)$

WACC 7.23587%

4 0

4 years ago

explain why it is not encouraged to rely on estimates of the intercept or constant when making economic analysis

ryzh [129]

It is not encouraged to rely on estimates of the intercept when a person is making analysis because intercept is the mean of variable Y when all predictors have become zero.

<h3>What is economic analysis?</h3>

This is the term that is used to refer to the analysis that is done with the given data that has been established in a statistical test. The economic analysis helps to make the predictions that would be used to bring about new policies in government.

Economic analysis is not done with the the intercept because it would require all the other predictor variables to have zero value hence their impact cannot be seen.

Read more on economic analysis here: brainly.com/question/14300080

#SPJ1

8 0

2 years ago

The marginal revenue product schedule is: * 1 point A) the same whether the firm is selling in a purely competitive or imperfect

Inga [223]

Answer:

B) the firm's resource demand schedule.

Explanation:

A product can be defined as any physical object or material that typically satisfy and meets the demands, needs or wants of customers. Some examples of a product are mobile phones, television, microphone, microwave oven, bread, pencil, freezer, beverages, soft drinks etc.

Marginal cost can be defined as the additional or extra cost that is being incurred by a company as a result of the production of an additional unit of a product or service.

Generally, marginal cost can be calculated by dividing the change in production costs by the change in level of output or quantity.

Marginal revenue can be defined as the additional amount of money that is gained or generated by a business firm from the sales of an additional unit of a product or service.

Hence, the marginal revenue product schedule is equal to the firm's resource demand schedule i.e the quantity of goods demanded at different price level at a specific period of time.

7 0

3 years ago

uring a recession, which of the following is true? A. Consumer staple stocks rise on expectations that consumers will continue t

alexandr1967 [171]

Answer:

A. Consumer staple stocks rise on expectations that consumers will continue to spend on necessities.

Explanation:

Recession refers to the contraction which occurs in the business cycle when the economic activities experience a decline. When the economy experiences a decline for at least six months, a recession occurs. During the period of recession, because of unemployment, the rate of growth decreases. The consumers stop to spend which affects the economy of the business.

7 0

4 years ago