Answer:
B. Teaser rate
Explanation:
Teaser rate also called introductory rate is an interest rate that is usually below market that last for a short period of time. It is the beginning rate placed on credit products. It is a form of discounted interest rate that is offered for a short period of time. The rate can be as low as 0% for that short period of time and goes back to the normal rate after the short period of time expires.
For question 3: I think it's True
For question 4: I think it's False.
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Answer:
The intrinsic value of the stock is $21.52
Explanation:
To calculate the intrinsic value of the stock, we will use the constant growth model of the dividend discount model (DDM). The DDM values the stock based on the present value of the expected future dividends from the stock. The formula for price today under the constant growth model of DDM is,
P0 = D0 * (1+g) / r - g
Where,
- D0 * (1+g) is D1 or the next expected dividend
- r is the required rate of return
- g is the growth rate in dividends
First of all, we need to calculate the r or required rate of return using the CAPM equation,
r = rRF + Beta * (rM - rRF)
Where,
- rRF is the risk free rate
- rM is the return on market
r = 0.024 + 1.12 * (0.107 - 0.024)
r = 0.11696 or 11.696%
P0 = 2 * (1+0.022) / (0.11696 - 0.022)
P0 = $21.52
Answer: Please refer to Explanation
Explanation:
The entry for the transfer of costs from finished goods to cost of goods sold is shown as follows,
DR Cost of goods sold $375,000
CR Finished goods. $375,000
As finished goods are transfered to the Costs of Goods, the account is CREDITED as an asset being reduced is credited. The Cost of Goods being another asset is increasing, thus it will be DEBITED.
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Answer:
E. Outbound logistics.
Explanation:
Outbound logistics is the process of designing, managing, and improving the movement of finished goods and works in process through the supply chain. In outbound logistics goods are stored, transported and distributed to the customers. There are two types of logistics, inbound and outbound. In inbound logistics, goods and materials move inside the organization while in outbound logistics the movement of the products is outside of the business. Outbound logistics is one of the important mechanism of the organization where they move their final products to the distributors, wholesalers and final consumers.
