Hyper Retail Outlets sell goods on terms of net 40. The store's average monthly sales (all on credit)
are $70,000.
Hyper pledges all of its receivables to the bank, which advances 80% of the face value
of the receivables at a rate of 2.5% above prime. The bank also charges a 1% processing fee on all
receivables pledged. Hyper borrows the full amount possible, and the current prime rate is 5%.
What is the annual percentage rate (APR) of using this source of financing for one full year?
A) 23.5% B) 21.8% C) 22.5% D) 19.1%
C
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Corporate earnings are subject to double taxation
Indicate whether the statement is true or false
Research shows that when employees of different cultures work for a multinational firm, ______.
A. their cultural differences strengthen B. their cultural differences weaken C. they adopt the cultural values of the firm D. their cultural differences are not affected
Zero-coupon bonds maturing in 1, 2, and 3 years have prices of 0.9345, 0.8766, and 0.8212, respectively. What is the forward price for a 1-year bond purchased in year 2?
A) 0.6866 B) 0.7234 C) 0.8787 D) 0.9368
A company's senior management team was discussing moving its operations to a new location; however, the number of variables that would affect the move were so great that they could not begin to evaluate them all. This situation illustrates the concept of
A. illusion of control. B. representativeness bias. C. programmed decision making. D. dialectical inquiry. E. bounded rationality.