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3 years ago

8

A person who buys stocks to make a little extra money consistently each year would be said to be doing so for __________________

.
Dividends

Mutual benefit

Investment

Speculation

1 answer:

blondinia [14]3 years ago

3 0

Answer:

Investment

Explanation:

To invest is to allocate money in the expectation of some benefit/return in the future.

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BigFoot is a new online shoe retailer that just hit the market. If a customer chooses to shop at BigFoot rather than Zappos, thi

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Answer:

<u>Threat of new entrants.</u>

Explanation:

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The bargaining power of customers,
The threat of substitute products or services and others,
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Rita Company buys merchandise on account from Linus Company for $590. Rita sells the goods to Ellis for $900 cash. Use a tabular

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Answer:

Record of transaction is given below

Explanation:

given data

Selling price of goods = $900

Cost of goods sold = $590

solution

we get here Record of transaction in Rita Company that is

Inventory accounts Dr $900

Account payable Cr $900

and

Record of transaction in Linus Company is

Account receive able Dr $900

Sales revenue Cr $900

and

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3 years ago

Drogo, Inc., is trying to determine its cost of debt. The firm has a debt issue outstanding with 14 years to maturity that is qu

just olya [345]

Answer:

a. 7.30%

b. 4.745%

Explanation:

For computing the pretax cost of debt we have to applied the RATE formula i.e to be shown in the attachment below:

Given that,

Present value = $1,000 × 106% = $1,060

Assuming figure - Future value or Face value = $1,000

PMT = 1,000 × 8% ÷ 2 = $40

NPER = 14 years × 2 = 28 years

The formula is shown below:

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

The present value come in negative

So, after applying the above formula

a. The pretax cost of debt is

= 3.65% × 2

= 7.30%

b. And, the after tax cost of debt would be

= Pretax cost of debt × ( 1 - tax rate)

= 7.30 % × ( 1 - 0.35)

= 4.745%

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