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Vlad1618 [11]
3 years ago
15

A Chinese exporter sells $200,000 of toys to a French importer. The Chinese exporter requires the French importer to obtain a le

tter of credit. When the bank accepts the draft, the exporter discounts the 90-day note at a 4 percent discount. What does the exporter's true effective annual financing cost?
Business
1 answer:
GuDViN [60]3 years ago
4 0

Answer:

0.0416483 or 4.16%

Explanation:

Annual percentage rate, APR = 4%

Value of toys sold = $200,000

Note period = 90 day

N = 365 ÷ 90

= $200,000 × [1 - (0.04 × 90/360)]

= $198,000

Effective annual financing cost:

=(\frac{Value\ of\ toys\ sold}{Calculated\ value} )^{\frac{365}{90} }-1

=(\frac{200,000}{198,000} )^{\frac{365}{90} }-1

= 1.0416483 - 1

= 0.0416483 or 4.16%

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you want to have $57,000 in your savings account 10 years from now, and you're prepared to make equal annual deposits into the a
VMariaS [17]

Answer:

$2,271.50

Explanation:

Future value of annuity=Annuity[(1+rate)^time period-1]/rate

57,000=Annuity[(1.079)^10-1]/0.079

57,000=Annuity[(1.079)^9]/0.079

57,000=Annuity * 1.9824/0.079

57,000=Annuity * 25.093671

Annuity=57,000/25.093671

Annuity = 2271.489094

Annuity = $2,271.50 appr.

6 0
3 years ago
A company plans to issue new Preferred Stock that pays 6% on the Par Value of $25. Similar preferred stocks are current selling
statuscvo [17]

Answer:

The cost of newly issued preferred stock to the firm is 5.82%

Explanation:

Annual dividend = $25 * 6% = $1.5

Present price = $28

Flotation costs = 8% = 8/100 = 0.08

Cost of new stock = Annual dividend / [Current price(1 - flotation costs)]

Cost of new stock = 1.5 / [ 28(1 - 0.08)]

Cost of new stock = 1.5 / [ 28(0.92)]

Cost of new stock = 1.5 / 25.76

Cost of new stock = 0.0582

Cost of new stock = 5.82% (Approx).

6 0
3 years ago
Calculate the gross margin in both dollars and percentage for this swim department if net sales are $1,150,000 and cost of goods
yawa3891 [41]

The gross margin ratio is also known as the gross profit margin or the gross profit percentage.<span>

The gross margin ratio is computed by dividing the company's gross profit dollars by its net sales dollars.</span>

 swim department net sales--------------------- $1,150,000

 cost of goods sold<span> -------------------------------- $638,400</span>

  This means its gross profit is $511,600  (net sales of $1,150,000 minus its cost of goods sold of $638,400) and its gross margin ratio is 44% (gross profit of $511,600  divided by net sales of $1,150,000).

6 0
3 years ago
Lawrence has worked in his career field for 20 years. one benefit of his experience over younger employees lies in
Ad libitum [116K]
<span>Experience teaches the things which a book can not teach. Thus, having extra work experience gives an edge to the person with higher experience with person with lesser experience. Lawrence's experience is more than his younger employees hence he knows various aspects of his work profile than the youngsters.</span>
3 0
3 years ago
They were totally excited to be getting a new system. It would allow them to conduct a remote discussion of the budget with the
slamgirl [31]

Answer:

The correct answer is letter "C": They were excited about the video conference system.

Explanation:

In order to make sentences more professional and direct, they must be objective. It implies any point of view, perspective, comment, or any subjective piece of information should be deleted so the statement is unbiased. By doing this, we avoid exaggerations or misunderstandings from the author.

In the sentence:

  • <em>They were </em><u><em>totally</em></u><em> excited to be getting a new system. </em>

We should delete "totally" which is an individual perception of the author. Then:

  • <em>They were excited about the video conference system.</em>

<em />

Will be a more objective sentence.

7 0
3 years ago
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