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3 years ago

You get a $3,000 loan at 9% interest for 120 days. The lender uses a 365-day year. How

Business

1 answer:

Luda [366]3 years ago

8 0

Answer:

$3,088.80

Explanation:

Note that the loan is meant for 120days , however, the interest rate quoted is on an annual basis, hence, the interest for 120 days is 2.96% ( 9%*120/365).

It is equally important to note that at maturity the loan principal and the interest accrued thus far for 120 days are repayable to the lender as computed below:

total repayment=$3000+($3000*2.96% )

total repayment=$3000+$88.80

total repayment=$3,088.80

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He allowance method of estimating uncollectible accounts receivable based on an analysis of receivables shows that $640 of accou

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Answer: The adjusting entry at the end of the year will include a credit to Allowance for Doubtful Accounts in the amount of: $750

Given:

Accounts receivable = $640

Allowance for Doubtful Accounts = $110

Therefore, the correct option is (c).

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3 years ago

Which of the following statements is accurate? Group of answer choices A cost-leadership competitive strategy increases the thre

Katen [24]

Answer:

The correct statement is expressed by option B - Firms with a low-cost position can reduce the threat of rivalry in an industry.

Explanation:

Firms with a low-cost position can reduce the threat of rivalry in an industry based on these reasons:

Firstly, these firms can decide to set their prices to be the same as the prices of higher-cost competitors.

Secondly, low-cost firms can decide to price their goods or services a little bit below the prices of their high-cost rivals.

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3 years ago

When new firms enter a monopolistically competitive market, the economic profits of existing firms A. will decrease because the

Anit [1.1K]

Answer:

The correct answer is option A.

Explanation:

Monopolistic competition is a market structure where there is a large number of producers selling differentiated products. These firms are price makers. There is very low or no restriction on the entry and exit of new firms.

Positive economic profits earned by the existing firms will attract potential firms to enter the market. When new firms enter, it increases the supply in the market.

This causes the price and market share of existing firms to decline. As the individual demand curves of the existing firms shift to the left, their profits will increase as well.

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3 years ago

A company's perpetual preferred stock currently sells for $102.50 per share, and it pays an $8.00 annual dividend. If the compan

Alex73 [517]

Answer:

8.21%

Explanation:

We can calculate this by the simple formula:

Price*(1 - Flotation cost) = Dividend/Cost of Pref. stock

Hence the formula turns into:

Cost of Pref. stock = Dividend / Price*(1 - Flotation costs)

Cost of Pref. Stock = 8 / 102.50*(1 - 0.05)

Cost of Pref. Stock = 8.21%

Hope this clear things up.

Good luck and cheers.

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3 years ago

Read 2 more answers

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The uncertainty of a customer about his choice after purchasing an item is an example of an Extended decision making.

<h3>What is an Extended Decision?</h3>

This is a response to a decision of high level of purchase followed by a complex evaluation of alternatives and uncertainty of a purchase made.

When a customer starts an extensive deliberation and reconsideration of his choice after purchasing a digital cameral, then he is having an extended decision making process. It might be trigger by the price of the commodity or his choice of an item.

Learn more about Extended Decision here:

brainly.com/question/7029808

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2 years ago