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sineoko [7]
3 years ago
14

Lester lent money to The Corner Store by purchasing bonds issued by the store. The rate of return that he and the other lenders

require is referred to as the:
(A) cost of equity.
(B) pure play cost.
(C) weighted average cost of capital.
(D) subjective cost.
(E) cost of debt.
Business
1 answer:
Alexxx [7]3 years ago
7 0

Answer:

The correct answer is letter "E": cost of debt.

Explanation:

The cost of debt is the interest a company pays on its borrowings. It is expressed as a percentage rate. Also, the cost of debt can be calculated as a before-tax rate or an after-tax rate. Before interest is deductible for income taxes, the cost of debt is usually expressed as an after-tax rate.

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If the expected return generated by a financial asset is greater than what is required for compensating the asset's risk, the de
Elis [28]

Answer:

False

Explanation:

Arbitrage refers to buying and selling stocks, commodities, bonds, currencies, or any other type of security. This process is carried out simultaneously, and a profit is made when the purchase price is lower than the selling price. E.g. a trader that purchases gold from a European seller and immediately sells it to an Asian buyer at a slightly higher price.

As technology advances, arbitrage has become more difficult to carry out because information is available to everyone. Before, a company could purchase a good (e.g. beef) in Texas and sell it at a higher price to a buyer in New York.

4 0
4 years ago
_____, a key feature of a customer relationship management (CRM) system, has the ability to capture and analyze all customer int
stiv31 [10]

Answer:

Contact management

Explanation:

Customer Relationship Management:

This is simply regarded as some known practices, strategies, and technologies used by companies so as to manage, record, and evaluate customer interactions. It is a tool used to increase sales growth by blessings or taking care of relationships within a company's customer base.

Customer life cycle

This simply shows the increasing steps a customer must pass through when considering, purchasing, using, and maintaining loyalty to a product

CRM captures, stores and analyzes customer data in real-time so the organization can improve processes that is of importance to customer satisfaction and thereafter support them. It helps in carrying out business strategy effectively.

By implementing a CRM system in a company successfully, a company can reduce costs and improve customer satisfaction. Focusing on customer's needs can helps with building of brand loyalty and market growth of the business.

4 0
3 years ago
At a total cost of $5,600,000, Herrera Corporation acquired 280,000 shares of Tran Corp. common stock as a long-term investment.
Volgvan

Answer:

1.

Date            Account title                                            Debit                Credit

Dec. 31        Investment in Tran Corp.                     $210,000

                    Investment Income                                                      $210,000

Working:

Herrera owns 280,000 out of 800,000 Tran Corp shares so they will recognize:

= 280,000/800,000 * 600,000

= $210,000 of Tran Corp. net income.

2.

Date            Account title                                         Debit                  Credit

Dec. 31        Cash                                                   $140,000

                   Investment in Tran Corp.                                               $140,000

Working

Cash received as dividend = 0.5 * 280,000 share

= $140,000

6 0
3 years ago
Which of the following type of income should a budget be based on
Luba_88 [7]
Investment property income should a budget be based
6 0
3 years ago
Which of the following protects the brokers commission
mrs_skeptik [129]

Answer:

A safety protection clause in a listing agreement entitles the real estate broker or agent to a commission after the listing expires or is canceled. This applies when the final buyer was brought to the deal by the broker.

5 0
3 years ago
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