Answer:
The dividends payout to preferred stockholders is $113,400 as shown below.
Explanation:
The total dividends payable to holders of preferred shares can be computed thus:
Preferred shares dividends=9000*$90*14%
Preferred shares dividends =$113,400
Preferred shareholders have prior claims to dividends ahead of ordinary shareholders,but after bondholders' interest payments have been settled.
The same way they also have precedence in the distribution of company's assets before ordinary shareholders upon the liquidation of the company.
The downside is that they cannot share in excess profits after payment of dividends as they are part-owners of the company unlike ordinary shareholders.
Final answer:
The total amount of dividends paid to Valley, Inc.'s preferred stockholders is $113,400, calculated by multiplying the par value ($90) by the dividend rate (14%) to get the dividend per share and then multiplying that by the total number of shares (9,000).
Explanation:
Valley, Inc. has 9,000 shares of preferred stock outstanding with a $90 par value and a 14% dividend rate. The dividends for preferred stockholders are calculated as a percentage of the par value. Since the stock is noncumulative, the total dividend amount only pertains to the current period, without regard to any previous unpaid dividends.
To calculate the total amount of dividends paid to preferred stockholders, the following steps are involved:
Multiply the par value ($90) by the dividend rate (14%) to find the dividend per shareMultiply the dividend per share by the total number of preferred shares outstanding (9,000)In this case:
$90 (par value) x 14% (dividend rate) = $12.60 (dividend per share)$12.60 x 9,000 (shares) = $113,400 (total dividends to be paid)
For determinant differences to exist, actual or perceptual differences must exist between brands. And the brand difference must be important to customers as they decide which brand to purchase. A. True B. False
Answer: True.
Explanation: it is an absolute truth that for a determinant differences to exist, actual or perceptual differences must exist between brands and the brand difference must be important to customers as they decide which brand to purchase.
The bonds issued by manson amp; son bear a coupon of 6 percent, payable semiannually. the bond matures in 15 years and has a $1,000 face value. currently, the bond sells at par. what is the yield to maturity?
Answer:
The Yield to maturity is 6%
Explanation:
As we know
If a bond is selling at a discount, the bond's coupon rate is less than its YTM.If a bond is selling at a premium, the bond's coupon rate is more than its YTM.If a bond is selling at a par, the bond's coupon rate is equal to its YTM.So, the given bond is selling at par
Yield to maturity = Bond Coupon Rate
Yield to maturity = 6%
The yield to maturity of a bond is the total return the investor will earn by holding the bond until it matures. For this bond, since it sells at par, the yield to maturity is equal to the coupon rate of 6%.
Explanation:The yield to maturity of a bond is the total return the investor will earn by holding the bond until it matures. To calculate the yield to maturity, we need to consider the bond's coupon rate, face value, and current market price. In this case, since the bond sells at par, or its face value, the yield to maturity will be the same as the coupon rate. The coupon rate is 6%, so the yield to maturity is also 6%.
It is important to note that the yield to maturity may vary if the bond is not selling at par. If the bond is selling at a premium (above face value) or at a discount (below face value), the yield to maturity will be different from the coupon rate.
For example, if the bond sells at a discount, the yield to maturity will be higher than the coupon rate. Conversely, if the bond sells at a premium, the yield to maturity will be lower than the coupon rate.
Forecasting drives all of the key business functions. Among the following cases, select the cases that are the least suited for the use of quantitative forecasting. (1). Demand of radically innovative new product (2). Supply of agricultural products (3). Demand of commodities (4). The rate of new product production
Answer:
(1). Demand of radically innovative new product
Explanation:
Forecasting refers to a decision making tool for planning and making estimates of future projections. This is usually achieved by relying on past events to determine future outcomes.
There are two forecast types, namely; judgment-based and quantitative.
The combination of the two types helps to get the best outcome as it aids to mitigate weaknesses.
Answer:
1)Demand of radically innovative new product
Explanation:
Remember radically Innovative new products are quality-focused so that consumers see value to be derived from them before making demands.
Therefore it best suited for qualitative forecasting rather than quantitative forecasting.
In recording an accounting transaction in a double-entry systema.the number of debit accounts must equal the number of credit accounts.b.there must always be entries made on both sides of the accounting equation.c.the amount of the debits must equal the amount of the credits.d.there must only be two accounts affected by any transaction.
Answer:
c. The amount of the debits must equal the amount of the credits.
Explanation:
a. The number of debit accounts must equal the number of credit accounts.
An account means one record entry of a transaction. There may be more credit or more debit accounts, depending on the transactions.
b. There must always be entries made on both sides of the accounting equation.
Although this happens most often, it is not always true.
The Accounting Equation: Assets = Liabilities + Owner's Equity
The two sides are separated by the equal sign. There can be a transaction that's only on one side. Example:
I buy a chair for $50 cash. Only the furniture and cash accounts are affected, and they are both on the assets side.
c. The amount of the debits must equal the amount of the credits.
This must always be equal. When you increase an asset (debit), you will increase owner's equity (credit). When you decrease an asset (credit) you could either decrease owner's equity or liability (debit).
d. There must only be two accounts affected by any transaction.
This is untrue. Sometimes, three or more accounts can be affected. For example, if I buy a chair, giving $20 down payment and borrowing $30 from the bank. The three accounts affected are furniture (increase by $50), cash (decrease by $20), and bank loan (increase by $30).
In a double-entry accounting system, the amount of the debits must equal the amount of the credits in every transaction.
Explanation:In recording an accounting transaction in a double-entry system, the correct statement is: c. the amount of the debits must equal the amount of the credits.
In a double-entry system, every transaction affects at least two accounts. The total amount debited in a transaction must always be equal to the total amount credited. This ensures that the accounting equation (assets = liabilities + equity) remains in balance.
For example, if a company purchases inventory for $500, it would debit the inventory account by $500 and credit the accounts payable account by $500, ensuring that the debits ($500) equal the credits ($500).
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Rodney was employed by Deluxe Discount Store. Rodney's manager directed him to check the prices of dog food at Huge Savings Store. The manager of Huge Savings Store saw Rodney writing down prices and asked him to leave. Rodney, fearful that he would be fired by Deluxe, refused to leave. Rodney committed the tort of:_______.a. larceny.b. trespass.c. misrepresentation.d. conversion.
Answer:B. Trespass
Explanation:Tort is a legal term used to describe both intentional an unintentional crime committed against another which resulted in harm,Tort is also a civil wrong which is committed against the laws of the land and it is punishable under the law.
The type of tort committed by Rooney is the tort of TRESPASS which means an unauthorized entrance into another person's Organisation's space either intentionally or not intentional.
Ski Market sells snowboards. Ski Market knows that the most people will pay for the snowboards is $129.99. Ski Market is convinced that it needs a 45% markup based on cost. The most that Ski Market can pay to its supplier for the snowboards is:
Ski Market sells snowboards. Ski Market knows that the most people will pay for the snowboards is $129.99. Ski Market is convinced that it needs a 45% markup based on cost. The most that Ski Market can pay to its supplier for the snowboards is $71.49.
Explanation:
people will pay for the snowboards is $129.99.Ski Market is convinced that it needs a 45%The most that Ski Market can pay to its supplier for the snowboard is= [tex]\frac{129.99}{100}[/tex]×45=$ 58.5=129.99 ±58.5= $71.49Therefore, Ski Market can pay to its supplier for the snowboards is $71.49.
Final answer:
Using a 45% markup based on cost and a maximum selling price of $129.99 for the snowboards, Ski Market can afford to pay a maximum of $89.65 to its supplier for each snowboard.
Explanation:
To calculate the maximum amount Ski Market can pay to its supplier for the snowboards, we need to use the concept of markup based on cost. Given that the selling price is capped at $129.99 and the required markup is 45%, we can determine the maximum cost Ski Market can afford to pay for the snowboards. The selling price is a combination of the cost to Ski Market plus the markup. The markup can be calculated as a percentage of the cost.
The formula to find the cost (C) based on the selling price (S) and markup percentage (M) is:
C = S / (1 + M)
We plug in the given selling price and markup percentage:
C = $129.99 / (1 + 0.45)
C = $129.99 / 1.45
C = $89.65 (rounded to two decimal places)
Therefore, the most that Ski Market can pay to its supplier for the snowboards is $89.65.
Meadow Range Pvt. Ltd. is a firm based in France that has one of the finest wine breweries in the country. Due to the availability of many grape varieties and suitable climatic conditions for growing grapes in France, Meadow Range has an advantage when competing in the international market. According to the diamond model, Meadow Range benefits from:
Answer:
C) factor conditions.
Explanation:
Michael Porter developed his Diamond Model to try to explain why some industries within certain countries possess competitive advantages over similar industries on other countries.
In this case, the climate conditions and the land of the French countryside favor the production of fine wines. This is an example of factor conditions that cannot be copied by other wine producers in other nations.
Final answer:
Meadow Range Pvt. Ltd. benefits from competitive advantages in the international wine market due to factor conditions, demand conditions, related industries, and industry rivalry as per the diamond model.
Explanation:
Meadow Range Pvt. Ltd., a prestigious winery based in France, enjoys significant competitive advantages in the international market according to the diamond model. This framework for understanding competitive advantage suggests that certain factors can make a nation's industries more competitive. Meadow Range benefits from factors such as factor conditions, which include the availability of numerous grape varieties and the ideal climate for viticulture in France.
Furthermore, the demand conditions locally can contribute to competitiveness by encouraging firms to innovate and improve quality. The presence of related and supporting industries, including high-quality suppliers and related sectors such as hospitality and tourism, can also enhance Meadow Range's success. Lastly, the firm's strategy, structure, and rivalry within the French wine industry push it to maintain high standards and continuous innovation, further sharpening its competitive edge.
Goods Guys Foods established a trust fund that provides $125,000 in scholarships each year for needy students. The trust fund earns a fixed 7.25 percent rate of return. How much money did the firm contribute to the fund assuming that only the interest income is distributed
Answer:
$1,724.138
Explanation:
Given:
Payment received each year = $125,000
Rate of return = 7.25 % = 0.0725
Present value = ?
Computation of Present value:
Present value = Payment received each year / Rate of return
= $125,000 / 0.0725
= $1724137.93
Present value = $1724137.93
Present value = $1,724,138 (approx)
Therefore, firm have to contribute $1,724.138
For inventoriable costs to become expenses under the matching principle
Answer:
b.) Product to which they attach must be sold
Explanation:
According to the matching principle, the expenses incurred of a particular period should be matched with the revenues earned for that particular period
In other words, the revenues and the expenses should be matched
In the given case, for becoming the expenses, its important to sold the product so that it creates the revenue for the organization
The matching principle requires inventoriable costs to be recognized as expenses when the product is sold. These costs are initially recorded as an asset on the balance sheet and transferred to cost of goods sold on the income statement. Not all costs incurred to produce a product are considered inventoriable costs.
Explanation:The matching principle is an accounting concept that requires the recognition of expenses in the same period as the revenues they help generate. In the case of inventoriable costs, these are the costs incurred to produce a product. These costs are initially recorded as an asset on the balance sheet under inventory. When the product is sold, the cost is transferred from inventory to cost of goods sold (COGS) on the income statement, matching the expenses with the revenues.
For example, let's say a company manufactures and sells bicycles. The costs of purchasing raw materials, labor, and overhead to produce the bicycles are considered inventoriable costs. When the bicycles are sold, the costs incurred to produce them are recognized as expenses on the income statement, reducing the company's net income.
However, it's important to note that not all costs incurred to produce a product are considered inventoriable costs. Some costs, such as selling and administrative expenses, are expensed in the period they are incurred and are not included in the calculation of inventoriable costs.
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Unrelated diversification is a corporate-level strategy in which firms own unrelated businesses and attempt to increase their value through an internal capital market and/or the use of:
Answer:
General Organizational Competencies
Explanation:
Internal capital markets refer to a situation whereby a company assesses the performance of it's different business divisions and decide the proportion of funds to be allocated.
Unrelated diversification refers to a situation wherein a business enters new unknown markets, adding an altogether new product which is non related to it's current offerings. Such business expansion or diversification is risky as there are more uncertainties involved.
Firms in such form of diversification attempt to increase their market value by focusing upon utilizing internal capital market for allocation of funds and at the same time utilizing it's general organizational competencies which would be the areas and functions wherein the firm holds a competitive edge.
Answer:
asddddddddddd
Explanation:
I was so excited for school to end and for summer vacation to begin. My grandpa and I were going to begin building a new fence around my backyard. I was really looking forward to spending the time with my grandpa. Which best describes the style of this text?
Answer: Casual.
Explanation:
A text or a paragraph is a set of words or sentences that together make a narrative. They have the distinction of starting with a capital letter and ending at a point. Paragraphs usually formulate only part of a narrative.
There are different styles of text, one of these is the casual text. This type of writing is very simple, it narrates the events in an orderly way with an urban or casual language. Emotions or actions are generally expressed in this type of text.
I hope this information can help you.
Answer: C. Casual
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Assume it costs Lady Marion Seafood, Inc. $30 to catch, process, freeze, package, and ship 5-pound packages of Alaskan salmon. The firm adds 60 percent to the cost of its salmon products and charges customers a total of $48 for a postage-paid vacuum-sealed package. What type of pricing does Lady Marion Seafood use to arrive at its final price?
Answer: Standard Markup pricing
Explanation: When pricing is made using the formula :
Price = actual price + markup. Then thw standard markup pricing strategy is in play. The seller or business owner after calculating the actual cost of production adds a certain percentage of the actual cost to arrive at his or her selling price for the product.
In the scenario above,
Actual cost of Lady Marion Sea food Inc. is $30
Markup is 60% of actual cost : 0.6 × $30 = $18
Therefore,
Selling price = $(30 + 18) = $48
Answer:
Standard markup pricing
Explanation:
Standard markup pricing is a fast an easy way to determine the price to charge for the goods and services being offered. It is calculated individually for each item based on the items costs. The standard markup price is calculated by adding the actual cost of the item to the mark up price. For this problem, the actual cost of the item is $30 and the mark up price is 60%. Therefore the markup price = 0.6 * $30 = $18
Standard markup price = Actual cost + markup price = $30 + $18 = $48
Suppose that coffee growers sell 200 million pounds of coffee beans at $2 per pound in 2015 and 240 million pounds for $3 per pound in 2016. Based on this information, we can conclude that the:______.a. law of supply has been violated. b. law of demand has been violated. c. demand for coffee beans has increased. d. supply of coffee beans has increased.
Answer:
B and C
Explanation:
The law of demand states that the higher the price, the lower the quantity demanded. This means that at a higher price, the quantity of coffee that should be demanded should decrease.
Hence, since there was an increase in the price of the coffee per pound in 2016, we expect that there should be less sales. Instead, there was still an increase.
Also, we can see that the the demand for coffee has increased. More pounds of coffee is needed which creates an increase in supply which thus has driven up the price
For the purposes of estimating the effective borrowing cost (EBC), only those up-front expenses associated with obtaining the mortgage should be included, not the settlement costs associated with obtaining ownership of the property. With this in mind, which of the following costs should not be included in one's calculation of EBC?
A. Discount points
B. Loan origination fees
C. Appraisal fee
D. Buyer's title insurance
Answer:
The correct answer is D. Buyer's title insurance.
Explanation:
When you buy a home, you receive a document that is usually called a deed, which indicates that the seller legally transferred the property, or the "title" of that home. Title insurance can protect you if someone later files a lawsuit and says they have a claim against the home since before you bought it. The most common claims are usually filed because the previous owner did not pay the taxes or because certain contractors did not charge for work done on the home before you bought it.
Most lenders require the buyer a title insurance policy for the lender, which protects the amount that the lender lends. You may want to buy a title insurance policy for the owner, which can help you protect your financial investment at home.
If we apply the standard model of capitalism to prime-time television programming, the television network is the producer, ________ are the product, and advertisers are the consumers.
Answer:
Audience
Explanation:
In the situation of prime-time television, we can describe producers who make a wide network to give a platform for Products.
In this case, products refer to an individual who watches or use to see televisions, and advertisers want that audience to see their advertisement, and fulfill their satisfaction so, consumers considered as advertisers.
Final answer:
In the standard model of capitalism applied to prime-time television programming, the network acts as the producer, the viewers are the product, and advertisers are the consumers. The network's goal is to attract a large audience to sell to advertisers.
Explanation:
When applying the standard model of capitalism to prime-time television programming, the television network operates as the producer. In this context, the viewers are the actual product being delivered, while the advertisers represent the consumers. This is because the business model for commercial television networks primarily revolves around attracting viewers to sell the 'eyeballs' of these viewers to advertisers. The advertisers pay the networks to have their commercials aired during programs with high viewership, betting on the large audiences to market their products and services. Producers are often compared to CEOs or business owners, overseeing all aspects of creating and distributing a television show. They manage the team, marshal resources, and make critical decisions to ensure the success of the program. The end goal is to deliver content that will garner high ratings and, in turn, attract advertisers willing to pay for access to a large pool of viewers.
Karen Bates has owned several automobiles from her favorite brand. Therefore, when deciding to purchase a new car for her daughter, her brand loyalty made the decision easy. Consequently, she gifted her daughter the latest model of that brand. According to the functional theory of attitudes, this scenario relates to the _____.
Full question:
Karen Bates has owned several automobiles from her favorite brand. Therefore, when deciding to purchase a new car for her daughter, her brand loyalty made the decision easy. Consequently, she gifted her daughter the latest model of that brand. According to the functional theory of attitudes, this scenario relates to the _____.
a. utilitarian function of attitudes
b. knowledge function of attitudes
c. ego-defensive function of attitudes
d. reinforcement function of attitudes
e. bilateral function of attitudes
Answer:
According to the functional theory of attitudes, this scenario relates to the knowledge function of attitudes
Explanation:
The knowledge function relates to our demand which is constant and moderately stable. This enables us to predict what is expected to happen, and so provides us a sense of command. Attitudes can assist us to plan and structure our activity.
They encourage people to ascribe reasons for events and immediate attention towards the opinions of people or circumstances that are possible to be beneficial in making sense of them. Consequently, they accommodate to obtain the world more comprehensible, foreseen, and obvious. Understanding a person’s attitude encourages us prophesy their behavior.
Hope is desperate for the new designer purse that she saw while window shopping at her local mall. She knew every girl in school would covet her bag and wish to be like her. When she walked in, she whipped out her credit card and purchased the $5,000 bag. This kind of purchasing is called:
Answer:
conspicuous consumption
Explanation:
The term conspicuous consumption was first introduced by a Norwegian-American economist and sociologist known as Thorstein Veblen in 1899. Conspicuous consumption refers to the practice whereby expensive goods or services are purchased by certain people at an outrageous cost just for the sake of display of flamboyant lifestyle or wealth for recognition purpose rather than for the very basic need the goods or services meet. It is simply an act of wasteful spending on goods or services that other people of that social class on a normal day cannot afford to pay such expensive price for.
The case of Hope is simply a kind of conspicuous consumption as she doesn’t mind emptying her credit card to afford the luxury of the new designer purse just for the purpose of public display among her social class.
When planning a trip, you observe that there are two non-stop daily flights to your destination. Upon doing some research, you find out that the early flight sells out 60% of the time and the later flight sells out 50% of the time. Based on this information, both flights must sell out at least ____% of the time.
Answer:
10%
Explanation:
The probability that one or the other will sell out is the summation of both flights probabilities.
Probability of either selling out= 60% + 50%
Probability of either selling out= 110%
The probability that both will sell out is 100%- (Probability of one or the other selling out)
Probability of both selling out= 100-110
Probability of both selling out= 10%
Ellie is spending her entire income on goods X and Y. Her marginal utility from the last unit of X is 100 and the marginal utility from the last unit of Y that she consumes is 50. Ellie's utility is only maximized if
Answer:
The price of good X is twice the price of good Y
Explanation:
Utility can be defined as the amount of satisfaction that one can derive from consuming a product.
Marginal utility is the additional utility derived from consuming an extra unit of a product.
Total Utility is the total satisfaction one derives from consuming all units of a product.
Because consumers are rational and they want to spend the least amount to get maximum utility, they are at equilibrium at the point where Marginal Utility of product X divided Price of X is equal to the Marginal Utility of product Y divided by Price of Y.
So for utility to be maximized it means that the price of good X has to be twice the price of good Y.
U.S. publisher Robert de Graff copied the success of similar books in England when he founded ________ in 1939. This company produced inexpensive paperback reissues of books that had already become successful in hardback.
Answer:
Pocket books
Explanation:
Pocketbooks were founded in 1939 and revolutionised the whole publishing industry. The idea was to produce easy to carry books with inexpensive paperback reissues. The idea became an instant success and per book cost was almost 25cent. Following the success of US publisher Robert de Graff many other publishing companies across England started to manufacture pocketbooks.
Currently Nemonix is using a decentralized collection system whereby customers mail their checks to one of the firm’s eight regional locations. Its annual sales are $95 million. Checks are deposited each business day in a local bank and the amount of the deposit is sent to the firm’s concentration bank in Dallas. The average time between deposit in the local bank and the availability of those funds, in Dallas, to Nemonix is 6 days. Nemonix has determined that the use of wire transfers would reduce the float by four days, but the transfer will cost $7.50. If transfers will be made on the 250 days that banks are open each year, should Nemonix switch to the wire transfer system? Assume that Nemonix can earn 8% on the funds released through this more efficient transfer.
Answer:
A) Yes; savings of $106,600
Explanation:
the total cost of making 250 money transfers = 250 transfers x $7.50 per transfer = $1,875 x 8 banks = $15,000
Neumonix can earn 8% on the funds released, so their total additional revenue = ($95,000,000 / 250 transfers) x 8% = $380,000 x 8% = $30,400 x 4 days = $121,600
Neumonix total savings = additional revenue - additional costs = $121,600 - $15,000 = $106,600
Yes, Nemonix should switch to wire transfer system because she would have savings of $106,600
First, we would determine the total cost of making 250 money transfers.
= 250 transfers * $7.50 per transfer
= $1,875
We will then multiply the above with the number of regional banks
= $1,875 * 8 banks
= $15,000
Again, we were told Neumonix can earn 8% on the funds released, hence, their total additional revenue would be ;
= ($95,000,000 / 250 transfers) x 8%
= $380,000 x 8%
= $30,400 x 4 days
= $121,600
Therefore,
Neumonix total savings
= Additional revenue - Additional costs
= $121,600 - $15,000
= $106,600
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Rodney was employed by Deluxe Discount Store. Rodney's manager directed him to check the prices of dog food at Huge Savings Store. The manager of Huge Savings Store saw Rodney writing down prices and asked him to leave. Rodney, fearful that he would be fired by Deluxe, refused to leave. Rodney committed the tort of:_______.a. larceny.b. trespass.c. misrepresentation.d. conversion.
Answer:Trespass
Explanation:
His refusal to leave after he had been asked to is trespassing; so also, he wasn’t a customer he was a spy sent to peak at the competitor. He also sought this information without permission.
∗ percy consumes cakes and ale. his demand function for cakes is qc = m − 30pc + 20pa, where m is his income, pa is the price of ale, pc is the price of cake and qc is the quantity of cake.
Solution:
Since there exists a positive relationship between price of ale and demand for cakes, the two are substitutes.
After substituting the given values,
Qc = 100 – 30pc + 20 pa
Where, qc= quantity of the cake, m = income of percy, pa = price of ale, pc = price of cake
Qc = 120 – 30 pc
Now, Rearranging demand function calculated above,
Qc = 120 – 30 pc
30 pc = 120 – Qc
Thus, Pc = 4 – 0.033 Qc
Marketing research showed that consumers in the West and the Southwest like spicier foods than those in the Southeast and East. As a result, Campbell's makes a hotter nacho cheese sauce for its western and southwestern customers. The differences in the nacho cheese sauce are the result of _____ segmentation.
Answer:
Geographic segmentation.
Explanation:
Geographic segmentation is when a business groups it's clients based on their location or when consumers have preferences on the basis of where they are located. Grouping is done by country, state, region, city, and so on.
For example luxury cars can target urban area for sale of their cars, as they will not do well in rural areas.
In this instance research showed that consumers in the West and the Southwest like spicier foods than those in the Southeast and East. So Campbell's makes a hotter nacho cheese sauce for its western and southwestern customers.
A plumber has a car payment of $250 per month. $225 of which goes to paying off the principal, and the rest goes towards the interest. What percent is being payed for interest
Answer:
Rate=R%=11.1111%
Explanation:
Given,
Amount=A=$250 (per month)
Principal=P=$225 (per month)
Interest=A-P=$250-$225=$25 (per month)
Time=1 month
Rate=R%=?
S.I=P×R%×T/100
25=225×R%×1/100
25×100/225=R%
R%=100/3
R%=11.1111%
Final answer:
10% of the plumber's monthly car payment is for interest, calculated by dividing the interest amount by the total payment and then multiplying by 100.
Explanation:
The plumber has a car payment of $250 per month, with $225 going towards the principal and the remainder towards interest. To find out what percent of the payment is for interest, we subtract the principal amount from the total payment to find the interest amount:
$250 - $225 = $25Now, we take the interest amount and divide it by the total car payment, then multiply by 100 to find the percentage:
($25 ÷ $250) × 100 = 10%Therefore, 10% of the plumber's car payment is for interest.
Last year both a borrower and a lender expected an inflation rate of 3 percent when they signed a long-term loan agreement with fixed nominal interest rates of 5 percent. If the actual inflation rate were lower than expected, then which of the following would be true?A. The borrower would benefit.B. The lender would benefit.C. The real interest rate would be lower than expected.D. The nominal interest rate would be higher than expected.
Answer:
B. The lender would benefit.
Explanation:
Based on the information provided within the question it can be said that in this scenario the one who would benefit from a lower inflation rate would be the lender. That is because by there being a lower inflation rate it means that the money that the borrower needs to pay back the loan does not have the buying power he predicted it would have when he borrowed it. Meaning that he would need to pay more money to the lender than originally anticipated.
Answer:
A. The borrower will benefit
Explanation:
The borrower benefits in the sense that the anticipated margin that took a 3% inflation rate into consideration will be smaller than the actual margin when the loan is repaid due to the prevailing inflation rate being smaller than anticipated. In simple English, the value of money the borrower gets at the time of repayment is higher than what was anticipated based on the expected inflation rates
Regarding the major trading partners of the United States A. the top 10 accounted for nearly 50 percent of total U.S. goods exports. B. the top 10 accounted for nearly 50 percent of total U.S. goods imports. C. China was the largest recipient of U.S. goods exports. D. China, Canada, and Japan were the three largest sources of U.S. goods imports. E. China, Canada, and Mexico were the three largest markets for U.S. goods exports.
Answer:
E) China, Canada, and Mexico were the three largest markets for U.S. goods exports.
Explanation:
As of 2017, the 10 largest markets for US exports were (measured in millions of dollars):
Canada $282,265 Mexico $243,314 China $129,894Japan $67,605 Great Britain $56,258Germany $53,897 South Korea $48,326 Netherlands $41,510Hong Kong $39,939Brazil $37,222Eagle Life Insurance Company pays its employees $.30 per mile for driving their personal automobiles to and from work. The company reimburses each employee who rides the bus $100 a month for the cost of a pass. Tom, in his Mazda 2-seat Roadster, collected $100 for his automobile mileage, and Mason received $100 as reimbursement for the cost of a bus pass.Assume that Tom and Mason are in the 24% marginal tax bracket and the actual before-tax cost for Tom to drive to and from work is $0.30 per mile. What are Tom's and Mason's after-tax costs of commuting to and from work?
Answer:
Tom must include the $100 in his gross income while Mason doesn't. Tom must include the $100 in his gross income, the after tax cost of commuting to work = $100 x marginal tax rate (24%) = $24. Since Mason is not required to include the $100 in his gross income, his after tax cost = $0.
Kathy Denver is preparing to launch a home security firm. The team of people that will launch Kathy's firm are as follows: Kathy (CEO), Trevor (VP-Finance), Shelia (VP-Sales), a four-person Board of Directors, a five-person Board of Advisors, and Kathy's primary investor, who will assume an advisory role. The group of people that will launch Kathy's firm is called its ________.
Answer:
The group of people that will launch Kathy's firm is called New Venture Team
Explanation:
As per the definition, a new venture team can be understood as a group of people who are -
FoundersAdvisors Key employeesof some already existing firm and plan to develop a separate new firm which is fully functional as a new firm.
In the question the people in the group are already a member of some firm and prepared to launch a new firm so this group will be termed as new venture team.
Sam is comparing the costs of two loans. The principal amount of each loan is $5,000. One is due in one year and the other is due in four years. Both have the same stated rate of annual interest. Which of the following is truea. the princpal paid for the one-year loan will be lower than the princpal paid for the four-year loanb. the princpal paid for the one-year loan will be higher than the princpal paid for the four-year loanc. the interest charges for the one-year loan will be higher than the interest charges for the four-year loand. the interest charges for the one-year loan will be lower than the interest charges for the four-year loane. the interest charges and princpal payments cannot be compared for the two loans
Answer:
b. the princpal paid for the one-year loan will be higher than the princpal paid for the four-year loan
d. the interest charges for the one-year loan will be lower than the interest charges for the four-year loan
Explanation:
Sam is comparing the costs of two loans.
The principal amount of each loan is $5,000.
One is due in one year and the other is due in four years.
Both have the same stated rate of annual interest.
Two of the following are true:
b. the principal paid for the one-year loan will be higher than the principal paid for the four-year loan.
Considering the time value of money, $5000 principal repayment in one year time discounted at 5% will be 5000/1.05^1 = $4,761 but if repaid in 4 years = 5000/ 1.05^4 = $4,113.5
d. the interest charges for the one-year loan will be lower than the interest charges for the four-year loan
5% on 5,000 for 1 year = $250 but if paid for 4 years will be 250 x 4 = $1000
Answer:
D) the interest charges for the one-year loan will be lower than the interest charges for the four-year loan
Explanation:
Even though the principal and the APR are the same for both loans, the duration of the loans change the total interest charged by the lender. The longer the repayment period, the most interests you are going to pay.
We can use a loan calculator to determine the total interest charged on both loans:
loan 1, principal = $5,000, interest rate = 10%, n = 1 year ⇒ total interest charged = $274.95loan 2, principal = $5,000, interest rate = 10%, n = 4 years ⇒ total interest charged = $1,087.02The monthly payment is lower for the second loan, but the total interest paid during the four years is much higher.