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3 years ago

What is a loan?

Business

1 answer:

sleet_krkn [62]3 years ago

6 0

Answer:

see below

Explanation:

A loan is when one party receives money from another and promises to pay it back with interest. A person, firm, or country will seek a loan from a lender with a promise to repay within a specified period and with interest. The interest paid becomes the cost of the loan.

Taking is a loan is similar to borrowing money. The loan amount is equivalent to the amount borrowed.

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The cost of raising capital through retained earnings is the cost of raising capital through issuing new common stock. The cost

Licemer1 [7]

Answer:

Explanation: Cost of equity can be defined as the return that the investors demand for bearing the risk of ownership in company's equity shares. It can be computed by using CAPM model which is represented as follows :-

cost of equity = risk free rate + beta *(market risk premium)

$K_e=\:R_f\:+\beta \left ( Er_m \right )$

$K_e=\:3.86\%\:+\b0.92 \left ( 5.75\% \right )$

= 9.15%

3 0

3 years ago

A company produces 500 microwave ovens per month, each of which includes one electrical circuit. The company currently manufactu

kipiarov [429]

Answer:

Operating income will be $6,000

Explanation:

The computation of the operating income is shown below:

= Total cost - outsourcing cost

where,

Total cost = Variable cost + fixed cost

Variable cost = Number of microwaves × variable cost per unit

= 500 × $26

= $13,000

And, the fixed cost is $7,000

Now put these values to the above formula

So, the value would equal to

= $13,000 + $7,000

= $20,000

And, the outsourcing cost equal to

= Number of microwaves × outsourcing cost per unit

= 500 × $28

= $14,000

So, the net income would be

= $20,000 - $14,000

= $6,000

3 0

3 years ago

Dolphus raymond tells scout, “you haven’t even seen this town, but all you gotta do is step back inside the courthouse.” how wil

Luden [163]

This is a quote taken from To Kill a Mocking Bird. Dolphus wanted Scout to understand the situation by looking stepping back and be able to see a better picture of the town. Scout was still young and immature to know about the situation.

6 0

3 years ago

Using the income statement method for accounting for uncollectible accounts, a company estimates that 2.5% of credit sales will

Digiron [165]

Answer:

the adjustment for estimated uncollectible accounts will require

b. Debit to Bad Debt Expense for $10,000.

Explanation:

There are two primary methods for estimating bad-debt expense. The first is an income-statement approach that measures bad debt as a percentage of sales.

Accout receivable at the end_ 80000

Credit sales_______________400000

Estimate________________ 2,50%

Debit bas debt expense______10000

7 0

3 years ago

What factors under the control of owners and managers make a firm successful and allow it to earn economic profits?

mafiozo [28]

Answer: E. The firm's ability to differentiate its product

Explanation:

The factor under the control of owners and managers that make a firm successful and allow it to earn economic profits is the firm's ability to differentiate its product.

Product Differentiation has to do with making a product unique from that of its rivals so that it'll be attractive to the customers and the target market. This will slow be vital for the company to produce at a average cost that is lower than that of its competing firms. This will help the company to have a competitive edge over others.

8 0

2 years ago