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3 years ago

Question 3

Business

1 answer:

disa [49]3 years ago

7 0

Answer:

B. The fact that I am a good person.

Explanation:

Credit history refers to a person's track record in borrowing and repayments of loans. It shows whether the individual has honored their debts in full and on time. Credit history is useful when applying for a loan from formal institutional lenders.

A bad credit history shows a person had issues in paying their loans. It affects their future borrowing as lenders may assess them as high-risk customers. Bad credit history attracts high-interest rates. Employers may judge some persons as poor money managers hence avoid hiring them.

Bad credit history is about debt payment but not who the person really is. Inability to repay loans may be caused by several factors such as illness or loss of income. A person's character remains the same regardless of their credit history.

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Pettit Company reports net income of $90,000 in 2019. However, ending inven- tory was understated $7,000. What is the correct ne

zimovet [89]

Answer:

a)Corrected net income= $97,000

b) Total assets figure is understated.

Explanation:

To arrive at the net income, cost of goods sold is usually deducted from the sales revenue. An cost of sold is determined by subtracting the value of inventory. So an understated inventory would mean an overstated cost of goods sold and understated net income

Correct net income = 90,000 + 7,000

 = $97,000

Inventory is part of current assets s reported in the balance sheet . Therefore, if inventory is understated it implies that the current assets figure is understated and therefore the total assets figure is understated.

8 0

3 years ago

At the present time, Andalusian Limited (AL) has 20-year noncallable bonds with a face value of $1,000 that are outstanding. The

JulijaS [17]

Answer:

After tax cost of debt is 6.45%

Explanation:

In computing the after tax cost of debt, the starting point would be to ascertain the pre-tax cost of debt-yield to maturity-before applying the tax.

The yield to maturity can be calculated using the rate formula in excel ,given as :=rate( nper,pmt,-pv,fv)

nper is the nuer of coupon interest the bond would pay which is 20

pmt is the annual payment of the bond which is 13%*$1000=$130

pv is the current price of the bond $1,181.96

fv is the face value of the bond which is $1000

=rate(20,130,-1181.96,1000)

rate=10.75%

Pretax cost of debt is 10.75%

After tax cost of debt=pretax cost of debt*(1-tax rate)

tax rate is 40%=0.4

=10.75%*(1-0.4)

=6.45%

7 0

3 years ago

BRAINLIEST TO FIRST CORRECT ANSWER TY

Alisiya [41]

10. none of the above.
explanation: all of the reason are applicable for determining the homeowners insurance premium.
11. Whole life insurance
Explanation: whole life insurance, has steady, more expensive premiums than term insurance since it lasts a lifetime and includes fixed death benefits and guaranteed cash value accumulation.

5 0

3 years ago

A common stock pays an annual dividend per share of $1.80. The risk-free rate is 5%, and the risk premium for this stock is 4%.

ArbitrLikvidat [17]

Answer:

The value of the stock today is $20

Explanation:

Using the CAPM equation, we first calculate the required rate of retunr on the stock.

The equation for CAPM is,

r = rRF + Beta * rpM

Where,

rRF is the risk free rate
rpM is the risk premium on market
Beta * rpM is the risk premium on stock

r = 0.05 + 0.04

r = 0.09 or 9%

The value of the stock can be calculated using the zero growth model of DDM. The DDM values the stock based on the present value of the expected future dividends from the stock. As the dividend from the stock is expected to remain constant through out to an indefinite period, the value of the stock today is,

P0 = Dividend / r

P0 = 1.8 / 0.09

P0 = $20

3 0

3 years ago

In a company's annual report, the section called Management Discussion and Analysis provides critical information for interpreti

ddd [48]

Answer:

A. True

Explanation:

The section called Management Discussion and Analysis in an annual report analyzes the performance of a company, includes comments from the management about the financial statements to allow the readers to understand the information in a better way and includes the future objectives and plans. According to this, the answer is that the statement that indicates that in a company's annual report, the section called Management Discussion and Analysis provides critical information for interpreting the financial statements and assessing the future of the company is true.

7 0

3 years ago