Answer:
Credit card
Explanation:
The formula for computing the APR is shown below:
= (1 + interest rate)^time period - 1
For monthly, it is
= (1 + 15% ÷ 12 months)^12 - 1
= (1 + 0.0125
)^12 -1
= 16.080000%
Now for the APR for 6 months is
= (1 + 16% ÷ 2 months)^2 -1
= 16.640000%
The rate that is given 8% is doubles i.e 16% and the computation is same as before
As we can see that credit card contain the lower rate i.e 16.08% as compare to the money borrowed from the parents
Answer:
b. 7.35%
Explanation:
Calculation for What is the best estimate of the after-tax cost of debt
First step is to use financial calculator to find I/Y
FV= 1,000
N=20 years *2 = 40
PMT=9%*1,000/2 = 45
PV = -930.41
I/Y=?
Hence,
I/Y = 4.9%
Second step is to calculate YTM
YTM=4.9%*2
YTM= 9.8%
Now let Calculate the best estimate of the after-tax cost of debt
Using this formula
After tax cost of debt = YTM*(1-tax rate)
Let plug in the formula
After tax cost of debt =9.8%*(1-25%)
After tax cost of debt =9.8*75%
After tax cost of debt =0.0735*100
After tax cost of debt == 7.35%
Therefore the best estimate of the after-tax cost of debt will be 7.35%
Those shops which are located in the mid of the mall and operated from there are called as Mall Koisk.
Answer:
As an alternatives to FDI, firms could choose <u>EXPORTING</u>, which involves producing goods at home and shipping them overseas, or <u>LICENSING</u>, which is granting a foreign firm the right to produce and sell a product in return for a royalty fee.
Explanation:
To export a good (or service) means to sell a domestically produced good to other foreign countries. Traditionally basically only goods were exported, but lately there has been a surge of service exports, e.g. outsourcing customer services to India.
Licensing a product or service refers to a licensor giving permission to produce a product or service and sell it within a given market, usually foreign market. The licensor charges royalties to the licensee in exchange for that permission.
