Simpson Conglomerates borrows $12,000 for a short-term purpose. The loan will be repaid after
120 days, with Simpson paying a total of $12,400. What is the approximate cost of credit using the
APY, or annual percentage yield, calculation?
A) 10.34% B) 12.46% C) 12.25% D) 4.33%
A
You might also like to view...
When researching a company, you should check print media because it is current
Indicate whether the statement is true or false
Assume that a firm has a degree of financial leverage (DFL) of 1.25. If sales increase by 20 percent, the firm will experience a 60 percent increase in earnings per share (EPS) and it will have an earnings before interest and taxes (EBIT) of $100,000. What will be the EBIT for the firm if sales do not increase??
A. ?$67,568 B. ?$100,000 C. ?$113,412 D. ?$84,375 E. ?$42,115
Institutional investors play important roles in financial markets. Explain
What will be an ideal response?
Patty is a poor college student struggling to work and keep up with her studies. Fred, her uncle, promises to pay Patty support of $200 per month for the next six months. Although Fred didn't ask her to, she quits her current job in order to devote full time to her studies for the next six months. Fred makes one payment and then stops with no explanation. If Patty sues, what is the likely result?
A. Fred would win, as he did not ask Patty to quit her job. B. Patty would win, as a contract was formed when Fred promised to pay her the support. C. Fred would win, as family members cannot sue each other for breach of an oral promise. D. Patty may win under the doctrine of promissory estoppel.