<span>You
can probably buy dialysis tubing in the medical section of the store since this
product is used primarily in the medical field. You need to have the aid of a
medical assistant in order to be aware of the uses of this product.</span>
Answer:
Flexibility option
Explanation:
False: It can be used equally for both.
Firms often have an option to vary inputs to the production or change the output from production. Such options are known as flexible production options.\ real option to expand.
Answer:
58.11%
Explanation:
Sales = $452,800
Operating costs= 354,300
Operating Income (EBIT) = $98,500
TIE= 4.00
Maximum interest expense= EBIT/TIE= $24,625
Interest rate= 7.50%
Max. debt =Max interest/Interest rate = $328,333
Maximum debt ratio=Debt/ Assets= 58.11%
Answer:
The answer is 0.91%
Explanation:
Solution
Farmers Bank:
Lending Amount =$50,000
Nominal rate (APR) =5.0%
Interest paid = Quarterly (4 periods in a year)
Thus
The effective annual rate (EAR) = (1 +APR/Number of compounding periods a year)^(number of compounding periods a year) -1
=(1 +5.0%/4)^4 -1
=(1+ 0.0125)^4 -1
=(1.0125)^4 -1
=1.05094533691406 -1
= 0.5094533691406
= 5.0954%
Therefore the effective annual rate in farmer bank is 5.0954%
Merchants Bank:
Lending Amount =$50,000
Nominal rate (APR) =6.0%
Interest paid = Annually (1 period in a year)
Thus
The effective annual rate (EAR) = (1 +APR/Number of compounding periods a year)^(number of compounding periods a year) -1
=(1+ 6.0%/1)^1 -1
= (1+0.06)^1 -1
=(1.06)^1 -1
=1.06-1
=0.06 or 6.0000%
Therefore the effective annual rate of the Merchant bank is 6.000%
Now,
The difference between the annual rates=EAR merchant bank -EAR Farmers bank
=6.0000% - 5.0945%
=0.9055% or 0.91%
Therefore the difference between the effective annual rates charged by the two banks is 0.91%
