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mylen [45]
3 years ago
15

Venture capital required rate of return. Blue Angel Investors has a success ratio of with its venture funding. Blue Angel requir

es a rate of return of for its portfolio of​ lending, and the average length on its loans is years. If you were to apply to Blue Angel for a ​$ ​loan, what is the annual percentage rate you would have to pay for this​ loan?
Business
1 answer:
Ksivusya [100]3 years ago
7 0

Complete Question:

Venture capital required rate of return. Blue Angel Investors has a success ratio of 10% with its venture funding. Blue Angel requires a rate of return of 20% for its portfolio of​ lending, and the average length on its loans is 5 years. If you were to apply to Blue Angel for a ​$100,000 ​loan, what is the annual percentage rate you would have to pay for this​ loan?

Answer:

Blue Angel Venture Capital

The annual percentage rate to be paid for this loan is:

= 38%

Explanation:

a) Data and Calculations:

Blue Angel Loan = $100,000

Required rate of interest = 20%

Average length of Blue Angel loan = 5 years

Success ratio of venture funding = 10%

Annual loss sustained from loan = 20% * (100% - 10%)

= 20% * 90%

= 18%

Therefore the annual percentage rate to be paid for this loan is:

38% (20 + 18%)

b) The implication is that the required rate of return expected by Blue Angel will be weighed by its failure rate of 90%.  This indicates additional cost of loan.  Therefore, the total annual percentage rate is the addition of the required rate of return and the rate of loss sustained.

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Usimov [2.4K]

Answer:

Core competencies

Explanation:

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Core competencies can be described as the different skills and practices which all employees in an organization are expected to possess irrespective of the various department's they belong to.

Some examples of core competencies include:

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8 0
3 years ago
Assume Clarks cannot estimate the standalone selling price of a pair of SunBoots sold without a coupon. Prepare a journal entry
kicyunya [14]

Answer and Explanation:

The journal entry is shown below:

Cash Dr (1,000 × $65) $65,000  

     To Sales revenue $59,000  

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(1,000 × $100 × 30% × 20%)

(Being the sales revenue is recorded)

here the cash is debited as it increased the assets and credited the sales revenue and deferred revenue as it increased the revenue and liabilities

7 0
2 years ago
Assume the following data for Casper Company before its year-end adjustments:
Ratling [72]

Answer:

a. Journalize the adjusting entry for the estimated customer allowances.

  • Dr Sales returns and allowances 10,500
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The adjusting entry should = total sales x estimated percent of returns = $1,750,000 x 0.6% = $10,500

b. Journalize the adjusting entry for the estimated customer returns.

  • Dr Estimated returns inventory 8,000
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This amount is given in the question, $8,000, so you need to record it as a decrease in COGS and an increase in returns inventory.

5 0
3 years ago
A manufacturing company that produces a single product has provided the following data concerning its most recent month of opera
quester [9]

Answer:

$61,200

Explanation:

The computation of the total period cost for the month under absorption costing is shown below:

= Fixed selling and administrative expense +  Variable selling and administrative expense rate × number of units sold

= $34,000 + 6,800 units × $4

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As we know that the period cost includes the major part of the selling expenses and we applied the same for the above computation

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The journal entry to record direct labor used in process costing is a(n):___________
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Answer:

b. increase in assets and an increase in liabilities.

Explanation:

The journal entry to record the direct labor cost used is shown below:

Work in process Dr

   To wages payable

(Being the direct labor cost used is recorded)

Here the work in process is debited as it increased the assets and credited the wages payable as it also increased the liabilities

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