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3 years ago

Jason has a Visa credit card and the Annual Percentage Rate is 18%, what is the rate he will be charged interest on per month?

Business

1 answer:

Keith_Richards [23]3 years ago

5 0

Answer:

a. 1.5%

Explanation:

18% for 12 mo

18%/12 mo

1.5%/mo

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Suppose a firm expects it’s EBIT to be 105,000 per year forever. Assume the firm can borrow at 6.75% ad has a tax rate of 32%. I

kolbaska11 [484]

Answer:

* If the firm has no debt, value of the firm = $696,585;

* If the firm borrows $120,000 and uses the proceeds to repurchase shares, value of the firm = $1,132,686.

Explanation:

* If the firm has no debt, value of the firm is calculated as: EBIT x ( 1- tax rate) / Cost of equity = 105,000 x ( 1- 32%) /10.25% = $696,585;

* If the firm borrows $120,000 and uses the proceeds to repurchase shares, value of the firm is calculated as below:

- New capital structure: Debt = 120,000; Equity = 696,585 - 120,000 = $576,585=> Debt + Equity = $696,585.

=> WACC= 10.25% x 576,585 / 696,585 + 6.75% x 120,000 * (1-32%) / 696,585 = 9.27%.

=> Value of the firm = EBIT / WACC = 105,000/9.27% = $1,132,686.

8 0

3 years ago

Sunland Company issued its 9%, 25-year mortgage bonds in the principal amount of $2,990,000 on January 2, 2006, at a discount of

sveticcg [70]

Answer:

Cash 2,839,000 debit

discount on BP 151,000 debit

Bonds Payabl*e 2,990,000 credit

--to record bonds issuance--

interest expense 275,140 debit

discount on BP 6,040 credit

cash 269,100 credit

--to record interest payment--

Explanation:

We will cacualte the cash outlay per interest paymenr

2,990,000 x 9% = 269,100 cash outlay

Then, we divide the discount over the life of the bond to knwo the depreciation:

amortization 151,000 / 25 = 6040

interest expense: 269,100 + 6040 = 275,140

As both, the amortization and cash putlay are fixed th interest entry repeats it selft each year.

4 0

3 years ago

Which statement defines externality?

valentina_108 [34]

I think the correct answer from the choices listed above is option D. It would be the impact of production and consumption on unrelated third parties that best defines the term externality. It is<span> a consequence of an economic activity experienced by unrelated third parties; it can be either positive or negative.</span>

7 0

3 years ago

When Sony launched its new PS4 gaming system, the product was sold as a package that included the game console, game controllers

spin [16.1K]

Answer:

Bundling

Explanation:

Bundling a strategy in which two or more products are packaged together and sold as a single combined unit, often for a lower price than they would charge customers to buy each item separately.

This strategy has a distinct feature which entails that The products and services are usually related, but they can also consist of dissimilar items which appeal to one group of customers.

In the bundling marketing strategy, the strategy of companies offering discounts can stimulate demand, lifting revenues often at the expense of profit margins.

It enables companies roll out different productsat the same time and selling at a discounted price while still making huge profit.

5 0

4 years ago

Read 2 more answers

Define demand and supply

daser333 [38]

They’re correct ^^!!!!

8 0

3 years ago