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podryga [215]
3 years ago
7

Antonio would like to replace his golf clubs with a custom measured set. A local sporting goods megastore is advertising custom

clubs for ​$690​, including a new bag.​ In-store financing is available at 5.23 percent or he can choose not to renew his ​$600 certificate of deposit​ (CD), which just matured
Business
1 answer:
Anastasy [175]3 years ago
8 0

Answer:

The below statements in quote are missing from the question.

“The advertised CD renewal rate is 6.13 percent. Antonio knows the in-store financing costs would not affect his taxes but he knows he’ll pay taxes (25% federal and 5.75% state) on the CD interest earnings. Should he cash the CD or use in-store financing? Why?”

Antonio  should cash in the CD to pay for the golf clubs rather  than opt for in-store financing arrangement,because after tax rate of CD is 4.25%  which less than the cost of in-store financing at 5.23%

Explanation:

The interest on CD before tax deductions is 6.13%

Total tax percentage due Federal and State governments  = 25% + 5.75% = 30.75%

After tax rate of CD = 6.13%(1 - .3075) = 4.25%

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Varvara68 [4.7K]

ANSWER 1. Capital

EXPLANATION: Calculating capital is necessary for a business. It is the basic duty of an entrepreneur to calculate capital before starting any business to check the financial capacity of the entrepreneur. Calculating capital also helps to estimate if any outside finance is necessary to start the business.

ANSWER 2: Set of Services

EXPLANATION: Choosing and categorizing set of services is necessary before starting any business. This will help in acquiring expert and trained set of labors to carry out the work. The clients will also come to know of the services that are available in the business. Expert and trained set of labors are difficult to find in any market.

ANSWER 3: Total Cost of Ownership

EXPLANATION: Total cost of ownership is a financial estimate intended to help buyers and owners determine the direct and indirect costs of a product or system. Each and every piece of equipment that Anita buys is added to the cost of the ownership of the business.

4 0
3 years ago
Read 2 more answers
Suppose that Edison, an economist from a university in Arizona, and Hilary, an economist from a school of industrial relations,
Ivahew [28]

Answer:

Tariffs and import quotas generally reduce economic welfare.

Explanation:

The vast majority of economists (over 90% according to the University of Chicago) agree that tariffs and import quotas generally reduce economic welfare. This is perhaps the normative statement in which economists agree the most.

The reason why is because tariffs and import quotas only benefit a small fraction of domestic producers, to the dismay of a larger number of consumers who end up having to pay higher prices for consumer goods.

6 0
3 years ago
At the beginning of 2021, Angel Corporation began offering a two-year warranty on its products. The warranty program was expecte
BartSMP [9]

Answer:

$9.7 million

Explanation:

The amount of warranty expense on Angel's 2021 income statement = Net sales x 5%

= $194 million x 5%

= $9.7 million

Thus, the amount of warranty expense on Angel's 2021 income statement will be $9.7 million

7 0
4 years ago
The common stock of Auto Deliveries sells for $28.16 a share. The stock is expected to pay $1.35 per share next year when the an
CaHeK987 [17]

Answer:

Market rate of return is 7.79%

Explanation:

The market rate of return on the stock can be computed using the market price of the stock , which is given below:

share market price =D1/(Expected market return-Dividend growth rate)

share market price is $28.16

D1 is the expected dividend next year which is given by $1.35

expected market return is the unknown

dividend growth rate is 3%

$28.16=$1.35/expected market return-3%

let y be the expected market return

$28.16=$1.35/y-3%

by cross multiplication the equation becomes

$28.16*(y-3%)=$1.35

y-3%=$1.35/$28.16

y=($1.35/$28.16)+3%

y=7.79%

6 0
3 years ago
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public debt a. . b. is public debt interest that the government must pay to those who hold the bonds it has issued to finance pa
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Net public debt is gross public debt minus the portion that is held by government agencies

Public debt is the total amount borrowed by the government, including all obligations, to meet its development budget. It must be paid out of the Consolidated Fund of India. The term "debt obligations" is also used to describe the total liabilities of the federal and state governments, even though the Union government expressly distinguishes its financial obligations from those of the states.

The ability of the government to issue debt has been crucial in the development of states. Public debt has been linked to the establishment of democracy, private financial markets, and modern economic expansion..

Learn more about public debt here:

brainly.com/question/27648457

#SPJ4

8 0
1 year ago
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