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Doss [256]
3 years ago
11

Arabian Beauty Cosmetics borrowed BD 152.300 from the National Bank of Bahrain (NBB) for three years. If the quoted rate (APR) i

s 11.75%, and the compounding is daily, what is the Effective Annual Rate?​
Business
1 answer:
Tju [1.3M]3 years ago
5 0

Answer: 12.47%

Explanation:

First convert the APR to the relevant periodic rate.

The compounding is done daily so the periodic rate is:

= 11.75%/365

Effective Annual rate is calculated by the formula:

= ( 1 + periodic rate)  ^ compounding period per year - 1

= ( 1 + 11.75%/365)³⁶⁵ - 1

= 12.47%

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The Hutch Fashions sends out its spring and summer catalog to Liz. Liz falls in love with the cute dress featured on the front c
Ede4ka [16]

Cindyliz is wrong in this situation

Both Cindyliz and The Hutch Fashions did not signed any contract that specify the obligation that The Hutch Fashions need to sell  a certain type of product to Cindyliz. She just obtained a summer catalogue, not a purchase order.  A catalogue only filled with list of product information that company sold.

8 0
3 years ago
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When a policy is surrendered for its cash value,?
ahrayia [7]
The cash surrender value<span> is the sum of money an insurance company pays to the policyholder or annuity holder in the event his </span>policy<span> is voluntarily terminated before</span>its<span> maturity or the insured event occurs.</span>
8 0
3 years ago
Assume Intel Corporation (INTC) and Texas Instruments (TXN) report the following information. Intel Corp Texas Instruments ($ mi
KATRIN_1 [288]

Answer:

d. INTC: 2.36 TXN: 3.43

Explanation:

The property , plant equipment turnover is the ratio of sales divided by the amount of PPE as shown below:

PPE turnover=sales/(beginning PPE+ending PPE)/2

Intel Corporation (INTC):

PPE turnover=$38,826/($15,768+$17,111)/2

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PPE turnover=2.36 times

Texas Instruments (TXN):

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PPE turnover=$13,392/$3,908.50

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The correct option is D

3 0
3 years ago
he director of capital budgeting for See-Saw Inc., manufacturers of playground equipment, is considering a plan to expand produc
kicyunya [14]

Answer and Explanation:

The computation is shown below:

Debt = D ÷ (E + D)

= 0.8 ÷ (1 + 0.8)

= 0.4444

Now

Weight of equity = 1 - Debt

= 1 - 0.4444

= 0.5556

As per Dividend discount model

Price = Dividend in 1 year ÷ (cost of equity - growth rate)

40 = $2 ÷ (Cost of equity - 0.06)

Cost of equity = 11%

Cost of debt

K = N

Let us assume the par value be $1,000

Bond Price =∑ [(Annual Coupon) ÷ (1 + YTM)^k] + Par value ÷ (1 + YTM)^N

k=1

K =25

$804 =∑ [(7 × $1000 ÷ 100)/(1 + YTM ÷ 100)^k] + $1000 ÷ (1 + YTM ÷ 100)^25

k=1

YTM = 9

After tax cost of debt = cost of debt × (1 - tax rate)

= 9 × (1 - 0.21)

= 7.11

WACC = after tax cost of debt × W(D) + cost of equity ×W(E)

= 7.11 × 0.4444 + 11 × 0.5556

= 9.27%

As we can see that the WACC is lower than the return so it should be undertake the expansion

5 0
2 years ago
When Opryland Hotel wants to have at least 90 percent of its customers indicating they had a memorable and satisfying experience
Darya [45]

Answer: 3. A marketing objective

Explanation:

Marketing objectives are goals set by a business when promoting its products or services to potential consumers that should be achieved within a given time frame. In other words, marketing objectives are the marketing strategy set in order to achieve the overall organizational objectives.

Marketing objectives are short-term achievements to help you achieve longer-term goals. They should be set on a weekly or monthly timeline. These objectives help a business set out what a business wants to achieve from its marketing strategy.

4 0
3 years ago
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