What will most likely cause a lender to approve credit? (5 points)

If incomes increase during a period of expansion, goods considered to be inferior will experience?

Olegator [25]

If incomes increase during a period of expansion, goods considered to be inferior will experience:

A decrease in demand

<h3>What are inferior goods?</h3>

Inferior goods are those types of goods that consumers have little or no interest in. These goods are mostly sought after when the economy is tough and people have no option but to purchase them.

However, when the economy improves and there is an expansion, people will naturally return to the goods that they believe have superior quality. When they make this move, the inferior goods will experience a decrease in demand.

Learn more about inferior goods here:

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5 0

1 year ago

Long Construction Company uses the percentage-of-completion method of accounting for long-term construction contracts. During 20

LUCKY_DIMON [66]

Answer:

$400 million less ($176+$84)=$14 million

Explanation:

the percentage of completion method of accounting is more like of income statement because it is used to assess the companys performance and financial position

8 0

3 years ago

Frank Town Farms has sales of $481,600, costs of $379,700, depreciation expense of $32,100, and interest paid of $8,400. The tax

Vinvika [58]

Answer:

net income = $41752

so correct option is A. $41,752

Explanation:

given data

sales price = $481,600

costs price = $379,700

depreciation expense = $32,100

interest paid = $8,400

The tax rate = 32%

to find out

net income did the firm earn for the period

solution

we get here net income that earn for the period is express as

net income = ( sales price - costs price - depreciation expense - interest paid ) × ( 1 - tax rate ) ......................... 1

put here value we get

net income = ( $481,600 - $379,700 - $32,100 - $8,400 ) × ( 1 - 32% )

net income = $41752

so correct option is A. $41,752

4 0

3 years ago

. Eric has another get-rich-quick idea, but needs funding to support it. He chooses an all-debt funding scenario. He will borr

Sergio039 [100]

Answer:

6.04%

Explanation:

The weighted average cost of capital (WACC) can be described as the average rate that is expected that a business will pay to finance its assets to all holders of its security.

The weighted average cost of capital (WACC) can be estimated as the summation of the products of the weight of each loan in the total loan and their interest rate for this question as follows:

Total loan amount = $1,823 + $1,533 + $644 = 4,000

Weight of loan from Wendy = $1,823 / $4,000 = 0.46, or 46%

Weight of loan from Bebe = $1,533 / $4,000 = 0.38, or 38%

Weight of loan from Shelly = $644 / $4,000 = 0.16, or 16%

Weighted average cost of capital = (46% * 4%) + (38% * 6%) + (16% * 12%) = 6.04%.

Therefore, the weighted average cost of capital for Eric is 6.04%.

7 0

3 years ago

Effective corporate governance is essential in large corporations because corporate ownership (by shareholders) is separated fro

nalin [4]

Answer:

False

Explanation:

Outside directors are members of the board of directors that are not employees of the corporation. While an inside director is a member of the board that is also employed by the corporation, e.g. CEO.

Corporations are separate entities form their stockholders, that is why limited liability applies to them. The board of directors doesn't have to include stockholders or employees, they usually do, but it is not required by law. Outside directors should very experienced and capable individuals that possess certain expertise that can help the corporation. Also, the board should control and supervise upper management, but if only inside directors were admitted into it, then who would control them?

7 0

2 years ago

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