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kirill115 [55]
2 years ago
4

A firm has an average collection period of 37 days and factors all of its receivables immediately at a discount of .98 percent.

Assume all accounts are collected in full. What is the firm's effective cost of borrowing? 10.20 percent 10.38 percent 10.13 percent 9.98 percent 10.24 percent
Business
1 answer:
mr_godi [17]2 years ago
3 0
Im pretty sure it is 10.24 percent

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Is Anna eligible to receive a Pell Grant? If she is, what is the maximum amount she can get from a Pell Grant?​
weqwewe [10]

Answer:

$6,195 for te 20119-2020 year.

Explanation:

The Pell Grant is a financial aid given to students who have money needs and doesn't have an undergraduate degree. The amount a person can get changes every year depending on several factors like family contribution and if the student will be attending full-time or part-time but the maximum amount for the year 2019-2020 is $6,195.

4 0
2 years ago
Read 2 more answers
ADVANCED ANALYSIS Assume the following values for Figures 4.4a and 4.4b: Q1 = 20 bags. Q2 = 15 bags. Q3 = 27 bags. The market eq
Amiraneli [1.4K]

Answer:

Explanation:

a. Total surplus is the area bounded by points a, b, and c. To calculate total surplus, we use the following formula for the area of a triangle: Area = ½ × Base × Height. The area between the demand curve and the supply curve for the quantity ranging from 0 to 20 is the total economic surplus. This is a triangle with a base (best read off the price axis) of $80, which is the price difference at Q = 0, or between points a and c, and a height of 20 (the number of units purchased in equilibrium). Using these values, we have a total surplus of (1/2) × $80 × 20 = $800.

The consumer surplus is the area between the demand curve and the equilibrium price line. Here we have a base of $40 (the price difference between the demand schedule price at Q = 0, which is $85, and the equilibrium price of $45). The height of the triangle is once again 20 (the number of units purchased in equilibrium). Using these values, we have a consumer surplus of (1/2) × 40 × 20 = $400.

b. Deadweight loss is the difference in total surplus between an efficient level of output Q1 and a reduced level of output at Q2. We can calculate this as the area of a triangle bounded by points bde. The base of this triangle is the difference in prices at points d and e, or $55 – $35 = $20. The height of this triangle is given by the difference in the restricted level of output of Q2 = 15 and the efficient level of output Q1 = 20, or 5 units. Thus, the area of this triangle (the deadweight loss) is equal to (1/2) × $20 × 5 = $50. The remaining total surplus can be found by subtracting the deadweight loss from the original (efficient) total surplus. This is $800 (maximum total surplus) – $50 (deadweight loss) = $750.

c. The deadweight loss from overproduction is the difference in total surplus between an efficient level of output Q1 and an additional level of output at Q3. We can calculate this as the area of a triangle bounded by points bfg. The base of this triangle is the difference in prices at points f and g, or $59 – $31 = $28. The height of this triangle is given by the difference in the additional level of output Q3 = 27 and the efficient level of output Q1 = 20, or 7 units. Thus, the area of this triangle (the deadweight loss) is equal to (1/2) × $28 × 7 = $98. The remaining total surplus can be found by subtracting the deadweight loss from the original total surplus. This is $800 (maximum total surplus) – $98 (deadweight loss) = $702. Note here that we maximize total (producer + consumer) surplus by producing the equilibrium quantity, but we lose surplus from overproduction (inefficient use of resources).

3 0
2 years ago
__________ provide a more level ride by raising or lowering a car's wheels
Anna [14]

The correct answer is the suspension stability system. This is defined as a kind of detection by which it detects driving conditions by means of lowering or raising the vehicle’s wheel that makes the ride more leveled or more smoother.

7 0
2 years ago
Main Street Antiques is planning on paying an annual dividend of $2.20 per share next year. The company is slowly downsizing and
goldenfox [79]

Answer:

The current value of this stock should be $20.

Explanation:

The current value of this stock should be calculated by applying the formula to find present value of growth perpetuity. The formula is shown as below:

Stock price = D1 / ( Rate of required return - Growth rate of annual dividend)

in which: D1 = next year dividend = 2.20;

               Rate of required return = 8%;

               Growth rate of annual dividend = -3%.

So, Stock price = 2.2 / [8% - (-3%) ] = $20.

So, the answer is: the current value of this stock should be $20.

5 0
2 years ago
Sister Pools sells outdoor swimming pools and currently has an aftertax cost of capital of 11.6 percent. Al's Construction build
pentagon [3]

Answer:

NPV -6,422.07908

The investment is not profitable at current cost of capital os 11.6%

Explanation:

Sister Pools 11.6% after tax cost of capital

Contructions 10.3% after tax cost of capital

- 85,000

cash flow 17,000 for next 7 years

<u>We will calculate the present value of a 7-years annuity of 17,000 at 11.6% </u>rate

<em>We use Sister Pools rate because we are asked for this company and there is no indication about a change in the cost of capital condition.</em>

<em />

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\\\\\\\17,000 \frac{1-(1+0.116)^{-7} }{0.116} = PV\\

PV = 78,577.92092

<u>Next we subtract the investment cost to get the Net Present Value</u>

78,577.92092 - 85,000 = -6,422.07908

3 0
2 years ago
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