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3 years ago

Annual Percentage Rate (APR), credit limit, and penalties

Business

1 answer:

Artyom0805 [142]3 years ago

3 0

Answer:

Choosing a credit card.

Explanation:

A credit card is a plastic rectangular card issued by financial institutions such as banks, that allows the cardholder to purchase goods or services from merchants on credit.

Credit cards offers it's users convenience to access a line of credit and thus, eliminates the need to carry cash (money) or check around.

The important criteria to consider when choosing a credit card are;

1. Annual Percentage Rate (APR).

2. Credit limit.

3. Penalties and fees.

4. Cash back.

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A young chef is considering opening his own sushi bar. To do so, he would have to quit his current job, which pays $20,000 a yea

iren [92.7K]

Answer:

$52,000 is the correct answer.

Explanation:

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3 years ago

What is the IRR for a project that costs $100,000 and provides annual cash inflows of $30,000 for 6 years starting one year from

ahrayia [7]

Answer:

A) 19.91%

Explanation:

Net present value of cash flow at 19.91% can be calculated as follows

- 100000 + 30000/1.1991 + 30000/ (1.1991)² + 30000/(1.1991)³ + 30000/ (1.1991)⁴ +30000/(1.1991)⁵ + 30000/ (1.1991)⁶

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= 0 ( approx )

So the IRR for the project is 19.91 % .

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4 years ago

Zoua needs 1.3 pounds of apples to make 1 pint of applesauce. She has 14.6 pounds of apples. How many more pounds of apples does

Daniel [21]

She needs 6.2 more pounds to reach 20.8, which is how much she needs for 16 pints of applesauce.

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3 years ago

Read 2 more answers

At Cost At Retail Inventory, February 1, 2020 $89,550 $99,500 Markdowns 35,000 Markups 63,500 Markdown cancellations 20,500 Mark

Taya2010 [7]

Answer:

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Explanation:

See attached file

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3 years ago

Balance Sheet (partial) Stockholders’ equity Paid-in capital Preferred stock, cumulative, 11,833 shares authorized, 7,100 shares

pickupchik [31]

Answer:

a) 548,000 shares

b) The stated value = $3 per common stock.

c) The par value of the preferred stock = $100

d) The dividend rate of preferred stock = 7%

e) Reported for retained earnings = $1,079,600

Explanation:

A. Number of outstanding common stock = Number of Common stock - Treasury stock

Given,

Number of Common stock issued = 555,000 shares

Treasury stock = 7,000 common shares

Treasury stock is the purchasing of the company's own stock from the market.

Therefore, Number of outstanding common stock = (555,000 - 7,000) shares

Number of outstanding common stock = 548,000 shares.

The stock of the firm has no par value. It means the full amount is either in the premium or in stated value. Therefore, the firm's declared value of the common stock is the total common stockholders' equity divided by the total number of common stock issued.

Hence, the formula is,

The stated value = $\frac{total common stockholders' equity}{total number of issued common stock}$

The stated value = $\frac{1,665,000}{555,000}$

The stated value = $3 per common stock.

We know,

The par value of the preferred stock = $\frac{Total preferred stock amount}{Number of preferred stock}$

Given,

Total preferred stockholders' equity = $710,000

Number of preferred stock = 7,100 shares

Putting the value in the formula,

The par value of the preferred stock = $\frac{710,000}{7,100}$

The par value of the preferred stock = $100

It is the selling price to the preferred stockholders for every preferred stock.

Given,

The annual dividend = $49,700

Total preferred stockholders' equity = $710,000

We know, the dividend rate of preferred stock = $\frac{Annual Dividend paid to the preferred stockholders}{Total preferred stockholders' equity}$ x 100

Therefore,

The dividend rate of preferred stock = $\frac{49,700}{710,000}$ x 100

The dividend rate of preferred stock = 7%

This is a fixed rate and for this firm, it is cumulative. Therefore, the firm's preferred stockholders' will receive 7% dividend per year.

Since the preferred stock of this firm is cumulative, therefore, the dividend has to be paid to the preferred stockholders if there are any outstanding amount remains in the previous year. Therefore, if there were $71,400 arrears of dividends, the firm would give those amounts from the retained earnings' balance.

Given,

Retained earnings = $1,151,000

Arrear preferred dividend = $ (71,400)

The balance would be reported for retained earnings = $1,079,600

3 0

3 years ago