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Reika [66]
3 years ago
15

he average borrowing rate for interest bearing debt is calculated as: Select one: A. Interest Expense divided by Average Interes

t-bearing Debt B. Interest Expense divided by Average Long-term Debt C. Interest Paid divided by Average Liabilities D. Interest Expense divided by Average Liabilities
Business
1 answer:
Anna11 [10]3 years ago
7 0

Answer:

A. Interest Expense divided by Average Interest-bearing Debt

Explanation:

A bond can be defined as a debt or fixed investment security, in which a bondholder (investor or creditor) loans an amount of money to the bond issuer (government or corporations) for a specific period of time. The bond issuer are expected to return the principal (face value) at maturity with an agreed upon interest (coupon), which are paid at fixed intervals.

An interest-rate risk can be defined as the risk associated with bond owners due to fluctuating interest rates. This risk has a direct level of impact on the value of fixed income securities such as bonds.

An interest rate can be defined as an amount of money that is charged as a percentage of the total amount borrowed from an individual or a financial institution.

Mathematically, the average borrowing rate (ABR) for an interest bearing debt is calculated using the formula;

ABR = \frac {Interest \; Expense}{Average \; Interest \ bearing \; Debt}

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miskamm [114]

Answer:

Marginal cost.​

Explanation:

6 0
3 years ago
Consider Emily's balance statement:
notsponge [240]

Answer:

see below

Explanation:

A balance sheet is prepared following the accounting principles of assets equal to liabilities plus equity. Assets are left side while equity and liabilities on the other.

Assets are valuable that a business owns. Liabilities refer to the debts or loans of the business. It is what the business owes others. Equity is the owner's contribution to the business.

In this balance sheet,  Emily has confused assets and liabilities.

The column labeled as liabilities represents assets. She should change that. This column should be the topmost column.  She has interchanged the labels for liabilities and assets. The difference between assets and liabilities should be equity.

8 0
3 years ago
Read 2 more answers
Mariah Dover cashed her $100 traveler's check in Riga, the capital of Latvia. At the current _____ rate, she received $61.82 in
zhannawk [14.2K]

Answer:

current floating exchange rate

Explanation:

Exchange rate is the rate at which one currency will be exchanged with another. For example, 1 United States Dollar is equivalent to 4.24 Poland Zloty as of March 2020.

There are two common types of exchange rates:

1. Floating exchange rate: This is set by the FOREX market, and is based on the current supply and demand of currencies. When demand for a currency is high, its value increases and vice versa.

2. Fixed exchange rate: A fixed or pegged exchange rate is whereby a government entirely determines the rate and value of the currency.

Generally, a floating exchange rate system is used in the global market. This does not mean countries allow their currencies to fluctuate endlessly. The central bank of a country and it's government does intervene and manipulate the currency to make it favorable for them during international trade but it is done in a more indirect manner as opposed to a fixed exchange rate system.

4 0
4 years ago
When selling convenience goods such as tobacco, newspapers, chewing gum, and potato chips to convenience stores, companies often
valentinak56 [21]

Answer: intensive distribution

                 

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The core objective of implementing thus Strategy is to make customer satisfied regarding the availability. These strategy is implemented for the products that already have a strong customer base.

Hence from the above we can conclude that the correct option is B.

5 0
3 years ago
What are some of the key components that are listed on a check in the current day?
stepladder [879]

Checks have several vital pieces of information, including

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5 0
4 years ago
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