<span>Prime lending rates are lower than subprime lending rates and are commonly offered to people with good credit scores.
A prime lending rate is a rate used by a bank that is typically used in favor of "good" customers. These people tend to have great credit so they get a larger amount approved but at a lower interest rate than subprime. Subprime interests rates are higher because they are typically given out to those with poor credit history. </span>
Answer:
$93,500
Explanation:
Net Working Capital = Current Assets - Current Liabilities
Current Assets = Total Equity + Liability - Fixed Assets
= $218,700 + $141,000 - $209,800 = $149,900
Current Liability = $141,000 X 40% = $56,400
As out of total due 40% is payable within a year, which means it is current liability.
Net working capital = $149,900 (current assets) - $56,400 (current liability)
= $93,500
Answer:
Idea generation
Explanation:
Based on the information provided within the question it seems that the phase that is being described is the Idea generation. This phase refers to the process creating new approaches for finding solutions to existing problems or creating new ideas/products. This phase requires a lot of research, input, and data analysis from many sources in order to generate the best ideas that will make the help the company succeed.
Answer:
5%
Explanation:
Data provided in the question:
Present value of the company, PV = $300,000
Current Profits, π₀ = $11,000
Interest rate, i = 9% = 0.09
Now,
we know,
here,
g is the growth rate
on rearranging, we get
g = 
on substituting the respective values, we get
g = 
or
g = 0.05
or
g = 0.05 × 100%
= 5%
Available Options Are:
a. Cost of Goods Sold
b. Net Profit Margin
c. None of these
d. Asset Turnover
Answer:
Option B. Net Profit Margin
Explanation:
The increase or decrease in cost of Goods sold can not tell whether the return on assets has increased or decreased becuase it would only tell that the expense are decreased or increased not the profit. Which means it only tells one side of the story hence Option A is incorrect.
Option B is correct because it talks about the profit. If the manufacturing cost has been decreased then the it must increase the profit. Because if the profits has increased then the return on asset will increase. Hence the Option B is correct here.
Option D is incorrect because asset turnover formula is:
Asset Turnover = Sales / Total Assets
The decrease in manufacturing cost will not increase the sales because sales and total assets are independent of manufacturing expenses hence the Option D is incorrect.
