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3 years ago

Which option is an example of a debt-funding source

Business

1 answer:

Furkat [3]3 years ago

7 0

Answer:

The option which is an example of a debt funding source can be banks, credit unions, or any external lender.

Explanation:

Debt funding is when a company raises money by marketing bonds, bills and notes, etc. to the investors
It differs from equity financing which is selling shares of the company.
Debt funding must be paid back at an previously agreed date.
If the business goes under, then the lenders have more rights on the property that will be liquidated than the share holders.

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It is generally recognized that the spending habits of individuals changes over their lives. In general, young adults tend to sp

ki77a [65]

Answer:

1. more

2. less

3. borrowing

4. past savings

Explanation:

It is generally recognized that the spending habits of individuals changes over their lives. In general, young adults tend to spend more than they earn, while older adults tend to spend less. To accommodate their spending habits, young adults tend to rely on funds raised from borrowing . Retired adults, in contrast, tend to rely on past savings to cover the frequent shortage between their current expenditures and their current incomes.

4 0

3 years ago

Fragmental Co. leased a portion of its store to another company for eight months beginning on October 1, at a monthly rate of $9

kenny6666 [7]

Answer:

Debit to Unearned Rent

Credit to Rent Earned for $2,925

Explanation:

Given:

Amount of total rent = $7,800

Computation:

Amount unearned = Amount of total rent (3months / 8 months)

Amount unearned = 7,800 [3/8]

Amount unearned = $2,925

Journal entry:

Unearned rent A/c Dr $2,925

Rent A/c Cr $2,925

[Debit to Unearned Rent

Credit to Rent Earned for $2,925]

4 0

3 years ago

Vito is the sole shareholder of Vito, Inc. He is also employed by the corporation. On June 30, 2020, Vito borrowed $8,000 from V

otez555 [7]

Answer:

The first loan for $8,000 could fall under the exemption of employer-employee loan. But then after the second is taken, that exemption would no longer apply. A minimum interest of $18,000 x 4% x 6/12 = $360 should be charged.

If the loan is considered a corporation-shareholder loan, then it doesn't qualify for any type of exemption, resulting in interests = ($8,000 x 4% x 6/12) = $160 for 2020

for 2021, interest applied = [($8,000 + $160) x 4%] + ($10,000 x 4% x 6/12) = $326.40 + $360 = $686.40

3 0

2 years ago

Butler Corporation is considerIng the purchase of new equipment costing $81,000. The projected annual after-tax net income from

Dahasolnce [82]

Answer:

d. $(6,642)

Explanation:

The present value is the sum of after tax cash flows.

Present value can be calculated using a financial calculator

Cash flow in year 0 = $-81,000

Cash flow each year in year 1 to 3 = $27,000 + $2,900 = $29,900

I = 10%

Present value = $(6,642)

To find the PV using a financial calacutor:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

I hope my answer helps you

6 0

2 years ago

What would be the amount of deposits D, given that the monetary base MB $750 billion, the required reserve rate (r) -0.1, the ex

Thepotemich [5.8K]

Answer:

$574.71 billion.

Explanation:

The formula for calculating amount of deposits is as follows:

$D= \frac{1}{(C/D)+rr+(ER/D)}\times MB$

where,

D = Deposits

rr = required reserve rate

ER/D = excess reserve rate

C/D = non-bank currency to deposits

$D= \frac{1}{(1.2)+0.1+(0.005)}\times 750$

D = 574.712644

D = 574.71

Therefore, the amount of deposits is $574.71 billion.

4 0

3 years ago