What are the two kinds of business or organizational structure?

The manager of Gloria's Boutique has approved Carla's application for 24 months of credit with maximum monthly payments of $70.I

Ymorist [56]

Answer:

Maximum initial purchase that Carla can buy on credit is <u>$1455.08</u>

Explanation:

Formula = M = [P (1 + r)^n * r] / [(1 + r)^n - 1]

$70 = P [(1 + 0.142/12)^24 * 0.142/12 ] / [(1 + 0.142/12)^24 - 1]

= $70 = P (1.326209535) * 0.142/12 / 0.326209535

= $70 = P * 0.0156934795 / 0.326209535

= P = $1455.08

So, the maximum initial purchase that Carla can buy on credit = $1455.08

4 0

3 years ago

▼ Cash Flow Present Discounted Value Interest Rate is based on the notion that a dollar paid in the future is less valuable than

BigorU [14]

Answer:

5000 in 1 year at 4% = $4,807.6923

9000 in 2 year at 1% =

Explanation:

We will calculate the present value of the loan at maturity

$\frac{Maturity}{(1 + rate)^{time} } = PV$

Maturity 5000

time 1

rate 0.04

$\frac{5000}{(1 + 0.04)^{1} } = PV$

PV $4,807.6923

$\frac{Maturity}{(1 + rate)^{time} } = PV$

Maturity 9000

time 2

rate 0.01

$\frac{9000}{(1 + 0.01)^{2} } = PV$

PV $8,822.6644

8 0

3 years ago

Which of the following statements is TRUE? (economics)

Angelina_Jolie [31]

Answer:

c

Explanation:

Banks are other lending entity's has access to a customer borrowing history. Through credit rating agencies, a bank can know whether a customer has a bad history in making loan repayments.

When a customer takes up a loan, banks share that information with a credit rating agency. The agency updated its records with the customer's national identity, such as the social security number. The banks keep on updating agencies on how each customer is meeting their obligation. Credit card payments are considered as loans.

Credit agencies rates each customer creditworthiness by assessing how they been repaying their debts. A higher credit score means the customer repays his loans promptly without missing installments. The information of each customer is available to all banks and lenders upon request.

6 0

2 years ago

American Exploration, Inc., a natural gas producer, is trying to decide whether to revise its target capital structure. Curren

Marat540 [252]

Answer:

a) 9.00 %

b) 7.80 %

c) yes the weight of the debt increases here is more risk in the investment as the debt payment are mandatory and failing to do so result in bankruptcy while the stock can wait to receive dividends if the income statement are good enough

d) 9.00 %

e) The increase in debt may lñead to an increase in return of the stockholders if they consider the stock riskier than before and will raise their return until the WACC equalize at the initial point beforethe trade-off occurs

Explanation:

a)

$WACC = K_e(\frac{E}{E+D}) + K_d(1-t)(\frac{D}{E+D})$

Ke 0.12

Equity weight 0.5

Kd(1-t) = after tax cost of debt = 0.06

Debt Weight = 0.5

$WACC = 0.12(0.5) + 0.06(0.5)$

WACC 9.00000%

c)

$WACC = K_e(\frac{E}{E+D}) + K_d(1-t)(\frac{D}{E+D})$

Ke 0.12

Equity weight 0.3

Kd(1-t) = after tax cost of debt = 0.06

Debt Weight 0.7

$WACC = 0.12(0.3) + 0.06(0.7)$

WACC 7.80000%

d)

$WACC = K_e(\frac{E}{E+D}) + K_d(1-t)(\frac{D}{E+D})$

Equity weight 0.3

Kd(1-t) = after tax cost of debt = 0.06

Debt Weight 0.7

$WACC = 0.16(0.3) + 0.06(0.7)$

WACC 9.00000%

3 0

3 years ago

PLLZZ HELLLP DUE IN 1 MINNNN

Helen [10]

Answer:

A is the correct answer I think hope this helps

5 0

2 years ago

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What are the two kinds of business or organizational structure?​

What are the two kinds of business or organizational structure?