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2 years ago

What is good about having a credit card? what is bad?

Business

1 answer:

navik [9.2K]2 years ago

7 0

Answer:

Credit cards are neither good nor bad. They are financial tools that must be used with care. Cards can help or hurt your finances if you don't use them responsibly. At the same time, credit cards used properly offer a convenient payment method that can build credit and earn rewards for users.

Explanation:

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Colgate-Palmolive Company has just paid an annual dividend of . Analysts are predicting dividends to grow by per year over the n

denis23 [38]

The amount of $97.85 is the price that dividend-discount model predict that Colgate stock should sell for today

Given Information

Current dividend (D0) = $1.59

Dividend payments for next five years includes:

D1 = 1.59 +0.18

D1 = 1.77

D2 = 1.77 +0.18

D2 = 1.95

D3 = 1.95 +0.18

D3 = 2.13

D4 = 2.13 +0.18

D4 =2.31

D5 = 2.31 +0.18

D5 =2.49

Year Cash Flow PVF at 8.1% Present value

1 1.77 0.92506938 1.637372803

2 1.95 0.855753358 1.668719048

3 2.13 0.791631229 1.686174517

4 2.31 0.73231381 1.691644901

5 2.49 0.677441082 1.686828295

Present value of Dividends 8.3707

PV of remaining dividends in 5 year = D5 x (1+g)/(Ke-g))

PV of remaining dividends in 5 year = 2.49(1+0.061)/(0.081-0.061)

PV of remaining dividends in 5 year = $132.0945

Given that g=6.1%, ke=8.1%

PV of remaining dividends in year = 0 = PV of the remaining dividends in year 5* 1/(1+0.081)^5

= 132.0945 * 1/(1+0.081)^5

= $89.48624

As per dividend-discount model, Colgate stock should sell for today = PV of Dividends till 5th year + PV of Remaining Dividend at t=0

= $89.48624 + $8.3707

= $97.8531

= $97.85

Hence, the amount of $97.85 is the price that dividend-discount model predict that Colgate stock should sell for today.

Read more about dividend

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8 0

2 years ago

If mega corp. borrows $9,000 and agrees to pay the lender $10,500 in one year, the annual interest rate on this loan is approxim

kap26 [50]

In simple interest, the interest rate is
i=(10500-9000)/9000=16.67%

In compound interest, compounded monthly,
10500=9000(1+i/12)^12
=>
APR=12(10500/9000)^(1/12)-1
=11.155%
(effective interest is still 16.67%)

5 0

3 years ago

Prepare a statement of cash flows

notsponge [240]

Answer:

Required 1

1. operating activities (OA) and investing activities (IA)

2. financing activities (FA)

3. financing activities (FA), operating activities (OA) and investing activities (IA)

4. financing activities (FA)

5. operating activities (OA)

6. financing activities (FA)

Required 2

All-Star Automotive Company

Statement of cash flows for the year ended 2013

Cash Flow from Operating Activities

Service Revenue $25,000

Salary Expense Paid - $14,000

Utilities Expenses - $2,800

Net Cash from Operating Activities $8,200

Cash Flow from Investing Activities

Land Purchase - $6,000

Proceeds from Sale of Land $9,000

Net Cash from Investing Activities $3,000

Cash Flow from Financing Activities

Issue of Common Stock $50,000

Loan Payable Acquired $5,000

Repayment of Loan - $2,000

Dividends Paid - $5,000

Net Cash from Financing Activities $48,000

Movement during the year $59,200

Cash and Cash Equivalents at the Beginning $9,000

Cash and Cash Equivalents at the End $68,200

Explanation:

Cash Flow from Operating Activities

This section shows the cash derived from daily operating activities of the business .

Cash Flow from Investing Activities

This section shows the cash derived from acquisition or sale of tangible and intangible assets of a long term.

Cash Flow from Financing Activities

This section shows the cash derived from the sources of finance and the repayments thereoff.

5 0

3 years ago

Suppose Mary is in consumer equilibrium. The marginal utility of good A is 30, and the price of good A is $2.. . a. if the price

zimovet [89]

Using formula: Marginal Utility=Change in Total Utility/Change in Quantity
So, the marginal utility of each good will be 30/$2, or 15/$1.
Multiply this marginal utility by the price of each good/service to obtain the marginal utility per unit of good.
Since marginal utility of good A is given then by using this formula the the marginal utility of good B is 60 , MU of good C is 45 and MU of good D is 15

7 0

3 years ago

Youâ€™ve decided to buy a house that is valued at $1 million. You have $250,000 to use as a down payment on the house, and want

LuckyWell [14K]

Answer: $6581.58

Explanation:

Based on the information given in the question, the mortgage payment per month will be calculated thus:

= [P x I x (1+I)^N]/[(1+I)^N-1]

where,

P = Principal = $750000

I = Interest rate per month = 10%/12 = 0.10/12 = 0.008333

N = number of installments = 30 × 12 = 360

Then, the equated monthly installment will be:

= [750000 × 0.008333 × 1.008333^360] / [1.008333^360-1]

= [750000 × 0.008333 × 19.8350386989] / [19.8350386989 - 1]

= 123964/18.835

= 6581.58

Under this loan proposal, your mortgage payment will be $6581.58 per month.

4 0

2 years ago

What is good about having a credit card? what is bad?​

What is good about having a credit card? what is bad?