Answer:
4.65%
Explanation:
Data provided in the question:
Amount borrowed = $18,000
Discount Interest rate = 4% = 0.04
Required compensating balance = 10%
Now,
Effective loan rate on Discount Loan with compensating balance is given as
⇒ [ ( Interest rate ) ÷ (1- interest %-Compensating balance%) ] × 100%
⇒ [ 4% ÷ ( 1 - 4% - 10%) ] × 100%
⇒ [ 0.04 ÷ ( 1 - 0.04 - 0.10 ) ] × 100%
⇒ [ 0.04 ÷ 0.86 ] × 100%
⇒ 4.65%
Answer:
The balance for long-term debt and retained earnings on Glen’s Tobacco Shop’s balance sheet is $18.2 million and $27.8 million respectively
Explanation:
The computation is shown below:
Given that
Debt = 50% × Total Assets
= 50% × $96.4 million
= $48.20 million
As we know that
Total Debt = Current Liabilities + Long Term Debt
$48.20 million = $ 30.0 million + Long Term Debt
So, the long term debt is $18.2 million
Now,
Total Assets = Total Liabilities + Owner's Equity
where,
Total Assets = Long Term Debt + Current Liabilities + Common Stock and paid-in surplus + Retained Earnings
$96.4 million = $18.2 million + $30.0 million + $20.4 million + retained earnings
So, the retained earnings is $27.8 million
Answer:
The correct answer is option c.
Explanation:
The variable costs are the cost incurred on the variable factors of production. The fixed costs are the costs incurred on the fixed factors.
In the short run, there are certain factors that are fixed and others that are variable. So in the short run, some costs are fixed and others are variable.
But in the long run, there is enough time for all the factors to be changed. So all the factors are variable and cost incurred on these variables is also variable.
So we can say that in the long run, there are no fixed costs.
Answer:
A) derived demand
Explanation:
The economic concept of demand is used to express the total amount of a good or service that is consumed. In the case of the car market, demand will be the total of cars bought by consumers. The concept of derived demand aims to explain the indirect demand for the inputs used in car manufacturing that occurs when consumers buy cars. The greater the demand for cars, the greater the demand for inputs, such as steel, for car manufacturing. Thus, the demand for steel from the demand for cars is a derived demand.
<u>Political risk</u> is the chance that political forces may change a country's business environment in ways that lead investors to lose some or all of the value of their investment or be forced to accept a lower-than-projected rate of return.
<u>Explanation:</u>
A form of threat posed by shareholders, companies, and authorities that political actions, incidents, or circumstances will impact a business actor's productivity, or the anticipated value of a defined economic activity dramatically is understood as a political risk.This can also handle the diplomatic danger by seeking to show to the host nation that it could not survive without the company's operations. It can be achieved by attempting to monitor raw materials, infrastructure and the channels of distribution in the host nation.
