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2 years ago

Which type of financing source performs the most strict, rigorous review of business records before guaranteeing financing?

1 answer:

5 0

I think the answer is Real estate financing. The real estate is typically financed over a fairly long term, 10 to 30 years. Expect a down payment of about 20%. It usually includes huge amount of loan. Thank you for posting your question here. I hope the answer helps.

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You have $12,500 you want to invest for the next 30 years. You are offered an investment plan that will pay you 7 percent per ye

Alchen [17]

Answer:

Future value= $151,018.51

Explanation:

Future value of money measures how much a present amount of money will be in the future at a given interest rate.

The interest gained on money shows the time value of money. One dollar today is less than one dollar in one year's time

The formula for future value is

Future value = Present value * (1 + rate)^time

As we have two periods in this case (10 years and 20 years)

Future value = Present value * {(1 + rate1)^time1} * {(1 + rate2)^time2}

Future value = 12,500 * {(1 + 0.07)^10} * {(1 + 0.095)^20}

Future value= $151,018.51

4 0

2 years ago

Your portfolio has a beta of 1.28. The portfolio consists of 35 percent U.S. Treasury bills, 31 percent Stock A, and 34 percent

Zarrin [17]

Answer:

2.85

Explanation:

U.S. Treasury bills are a risk-free asset, and thus have a beta of zero. Since Stock A has a risk-level equivalent to that of the overall market, its beta is one. Therefore, the beta for Stock B can be found by:

$1.28=0.35\beta_{T}+0.31\beta_{A}+0.34\beta_{B}\\1.28 = 0.35*0+0.31*1+0.34\beta_{B}\\\beta_{B}=\frac{1.28-0.31}{0.34}\\ \beta_{B}=2.85$

The beta of Stock B is 2.85.

6 0

2 years ago

Assume that Joe has $80 to spend on books and movies each month and that both goods must be purchased whole (no fractional un

vovangra [49]

Answer:

Please see attachment

Explanation:

Please see attachment

7 0

2 years ago

Marin Products produces three products — DBB-1, DBB-2, and DBB-3 from a joint process. Each product may be sold at the split-off

sattari [20]

Answer:

MARIN PRODUCTS

Selling after further processing

DBB-1 DBB-2 DBB-3

unit 16,000 24,000 36,000

Sales revenue after

processing $1,040,000 $1,200,000 $2,700,000

Joint Cost (757,895) (1,136,842) (1,705,263)

Separate processing cost (110,000) (44,000) (66,000)

Net Income 172,105 10,158 928,737

selling at slipt off point

DBB-1 DBB-2 DBB-3

unit 16,000 24,000 36,000

Sales revenue $400,000 840,000 1,980,000

Joint Cost (757,895) (1,136,842) (1,705,263)

Net Income (357,895) (296,842) 274,737

Decision : All products should be processed further in order to increase the profit of the company

Allocation of Joint Cost

Cost per unit = $3,600,000/76,000= $47.37

DBB-1 = $47.37*16,000 = $757,895

DBB-2 = $47.37*24,000 = $1,136,842

DBB-3 = $47.37*36,000 = $1,705,263

Explanation:

8 0

2 years ago

The following is cost information for the Creamy Crisp Donut Company.Entrepreneur's potential earnings as a salaried worker = $5

jarptica [38.1K]

Answer:

Creamy Crisp's total revenues exceed its total costs, including a normal profit, by $366,000

Explanation:

Creamy Crisp's total revenue exceeds its total cost, including a normal profit by =

When answering this we use all the actual costs and revenue and all the hypothetical figures, or the opportunity costs and revenue as we need to calculate total revenue exceeding costs and normal profits.

Total revenue actual + potential = Entrepreneur's potential earnings as a salaried worker $50,000 + Annual revenue from operations $380,000 + Value of entrepreneur's talent in the next best entrepreneurial activity $80,000 + Entrepreneur's forgone interest on personal funds used to finance the business $6,000

= $516,000

Total costs = Payments to workers $120,000 + Utilities (electricity, water, disposal) costs $8,000 + Annual lease on building = $22,000

= $150,000

Creamy Crisp's total revenues exceed its total costs including a normal profit by $516,000 - $150,000 = $366,000

Since normal profit is included and not excluded normal profit shall not be computed separately and the final answer is $366,000

4 0

2 years ago