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Blizzard [7]
3 years ago
15

On September 1, 2021, Hiker Shoes issued a $100,000, 8-month, noninterest-bearing note. The loan was made by Second Commercial B

ank where the stated discount rate is 11% Hiker's effective interest rate on this loan (rounded) is: ____________
Business
1 answer:
djyliett [7]3 years ago
6 0

Answer: 11.87%

Explanation:

Effective interest rate on this loan is:

= Interest payment / (Note - Interest payment) * 12/8 months

Interest payment:

= Note * Interest rate * 8/12 months

= 100,000 * 11% * 8/12

= $7,333

Effective interest:

= 7,333 / (100,000 - 7,333) * 12/8

= 11.87%

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A modified DCF analysis is best for evaluating and selecting the optimal strategic alternative when a company has ___ goal(s) an
Trava [24]

Answer: single; quantitative

Explanation:

The discounted cash flow analysis is a method that is used to determine the value of a project, security, or assets by using time value of money.

The discounted cash flow analysis is used in real estate, investment finance, patent valuation etc. A modified DCF analysis is best for evaluating and selecting the optimal strategic alternative when a company has single goal(s) and quantitative measures.

6 0
3 years ago
Piedmont Company segments its business into two regions-North and South. The company prepared the contribution format segmented
Oduvanchick [21]

Answer:

The Dollar sales break even for the company is $568750, for the north region is $320000 and for the south region is $80000.

Explanation:

1. for the company:

cont margin ration = contribution/sale

                               = 240000/750000

                               = 0.32

fixed cost = 182000

dollar sales break even = fixed cost/cont margin ratio

                                       = 182000/0.32

                                       = $568750

2.  for the north region:

cont margin ration = contribution/sale

                               = 120000/600000

                               = 0.20

fixed cost = 64000

dollar sales break even = fixed cost/cont margin ratio

                                       = 64000/0.20

                                       = $320000

3. for the south region:

cont margin ration = contribution/sale

                               = 120000/150000

                               = 0.80

fixed cost = 64000

dollar sales break even = fixed cost/cont margin ratio

                                       = 64000/0.80

                                       = $80000

Therefore, The Dollar sales break even for the company is $568750, for the north region is $320000 and for the south region is $80000.

3 0
3 years ago
What is conceptualization ​
Volgvan

Answer:

the action or process of forming a concept or idea of something in your mind

Explanation:

5 0
3 years ago
If a customer is reluctant to try a new product because she’s afraid of what her friends might think, the company is most likely
Tanya [424]
The answer is the company is most likely facing a psychological barrier. If she's afraid to buy a product because she feels her friends will tease her if they find out, then that has to do with her mindset, which is a <span>psychological barrier for the company.</span>
4 0
3 years ago
ABC Manufacturing employs some of the top professionals in its field, and because of their skills and experience, ABC is highly
andrew-mc [135]

Answer:

competitive advantage

Explanation:

A competitive advantage is the ability of a company to perform better than its competitors based on a unique value it offers to consumers. For example exclusive access to a resource, low pricing of same goods with competitors, highly skilled labour, geographic location, and brand recognition.

ABC manufacturing employs top professionals, so it is leveraging on its highly skilled labour to get competitive advantage in the industry.

5 0
3 years ago
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