Answer:
The Matt's EAR is 7.24%
Explanation:
The money borrowed by the company (L) = $10 million
Time period for the loan (T) = 4 months
Rate given (APR) = 5.5%
Per Month rate R=5.5%/12=0.46%
The fee of warehouse that is paid at the starting of the loan = 0.5%
Now we have to calculate the Matt’s EAR.
Warehouse fees =0.5%
So Fees F= 0.5% × L = 0.5% × $10 = $0.05 millions
Therefore, the Net amount we get N = L – F = 10 - 0.5 = $9.95 millions
Assume r be the per month EAR
N*(1+r)^4 = L*(1+R)^4
9.95*(1+r)^4 = 10*(1+0.46%)^4
r=0.58%
EAR =(1+r)^12-1= (1+0.58%)^12-1 = 7.24%
High end products with unique features
Just took this test was correct ! Mark brainalist pls
To pay a higher interest rate, a lower relative stock price, and a higher cost of funds than its competitors
Answer
The answer and procedures of the exercise are attached in the following archives.
Explanation
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
Answer:
1. $ 136,500
2. $70000
3. Medical market
Explanation:
1. Calculation to determine How much would the company's profits increase (decrease) if it implemented the advertising campaign in the MEDICAL MARKET
First is to calculate the sales
Sales = (400 000 + 70 000)
Sales = $470 000
Second step is to calculate the profit
Variable cost =$470 000 *65%
Variable cost=$305 500
Contribution =$470 000*35%
Contribution =$164,500
Fixed Expense= $28 000
Profit = $ 136,500
Now let calculate the Difference made by advertisement
Difference = 136500 - 120000
Difference=16500
2. Calculation to determine How much would the company's profits increase (decrease) if it implemented the advertising campaign in the
DENTAL MARKET
vcr Of The Dental market = 50%
Variable cost =50% $260 000
Variable cost = $130 000
Contribution = $130 000
Fixed expenses = $60 000
Profit = $70000
Now let determine difference made by the advertisement
Difference =(70000) - 48000
Difference= 22000
3. Based On the above calculation the markets I would recommend that the company focus its advertising campaign is medical market
