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2 years ago

Which of these describes what can happen with an adjustable-rate mortgage?

Business

2 answers:

elixir [45]2 years ago

5 0

Answer:

The monthly mortgage payments go up or down from year to year.

Explanation:

olga55 [171]2 years ago

4 0

Answer:the answer is D

Explanation:

It goes up and down due to the adjustable rate of the mortgage

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Although there are some clear disadvantages associated with extending credit to customers, such as bad debt costs, most managers

WITCHER [35]

Answer:

The primary advantage they refer to is additional sales revenue.

Explanation:

Extending credit to customers is generally done through use of credit cards these days. This does allow the customers to buy goods and services on credit and pay later for those goods.

Offering credit is beneficial for both the shopkeepers or merchants and the buyers. Customers do not have to pay cash (as they can run out of cash at times), so they buy more and this increases the sales revenue for the merchants, which becomes the primary advantage for them and outweighs the costs.

5 0

3 years ago

On December 31, 2021, Interlink Communications issued 6% stated rate bonds with a face amount of $119 million. The bonds mature

Tamiku [17]

Answer:

Price of the bond is $104,236,860.

Explanation:

Given:

Coupon rate is 6% or 0.06

Face value = $119,000,000

Coupon payment each year = 0.06×119,000,000

= $7,140,000

Yield to maturity = 7% or 0.007

Maturity period = 30 years

Price of bond = Present value of face value + present value of coupon payment (annuity)

Price of bond = $119,000,000_{(PV\ 30,0.07)} + 7,140,000_{(PVA\ 30,0.07)}$

PV of $1 for 7%,30 periods = 0.1314

PVA of $1 for 7%,30 periods = 12.409

Substitute the values in above formula:

Price of bond = (119,000,000 × 0.1314) + (7,140,000 × 12.409)

= 15,636,600 + 88,600,260

= $104,236,860

There will be slight difference in final answer as present value table is used. Excel spreadsheet gives an accurate answer.

So, price of bond is $104,236,860

8 0

2 years ago

BSW Corporation has a bond issue outstanding with an annual coupon rate of 7 percent paid quarterly and four years remaining unt

Liono4ka [1.6K]

Answer:

$788.35

Explanation:

For computing the fair present value we need to apply the present value formula which is to be shown in the attachment below:

Given that,

Future value = $1,000

Rate of interest = 14% ÷ 4 = 3.5%

NPER = 4 years × 4 = 16 years

PMT = $1,000 × 7% ÷ 4 = $17.5

The formula is shown below:

= -PV(Rate;NPER;PMT;FV;type)

So, after applying the formula, the fair present value is $788.35

3 0

2 years ago

The Simon Company (SIMON) currently has $300,000 market value (and book value) of perpetual debt outstanding carrying a coupon r

Reptile [31]

Answer:

The answer is "4,750"

Explanation:

They have indeed been given the information that we require.

The current market cap for Simon Company (SIMON) is $300,000.

rate= 6%

EBIT=$150,000

The business has no plans to expand.

The current cost of capital is 8.8%,

The tax rate is 40%.

The company has 10,000 shares of common stock mostly on market.

The stock is being offered at a $90.00 per share price.

Assume SIMON is considering switching in its current financial performance to one that results in a share price of $96 per share.

The resultant capital structure would have a combined valuation of $504,000 in capital and $756,000 in equity.

Remaining Shares= equity market value / per share price

$n =\frac{S}{P} \\\\= \frac{\$504,000}{ \$96}\\\\= \$5,250$

The initial number of shares minus the resultant number of shares equals the number of repurchased shares:

AJC will buy back a certain number of shares.

$= 10,000 - 5,250\\\\= 4,750\\$

8 0

2 years ago

Choosing a computer that costs_____ instead of one that cost ____

Oliga [24]

The correct answer is C, no doubt

6 0

2 years ago

Read 2 more answers