A good credit rating would be based on all the following criteria EXCEPT whether you a. have a record of paying what you owe on time. b. have little or no current debt. c. use credit for regular expenses. d. can afford to take on more credit. e. have used credit appropriately in the past.
Q: Consider a project with initial investment of Birr 25,000 generating the following cash flows over 4…
A: IRR, on the other hand, is the discount rate that makes the present value of cash inflows equal to…
Q: Give typing answer with explanation and conclusion to all parts A stock just paid a dividend of…
A: Value of the stock is computed as present value of all future dividends and PV of share price at the…
Q: A company is considering two similar investment projects. One has an initial cost of $50,000 and the…
A: There are different methods for the evaluation of the project that can be done using discounting…
Q: A borrower agrees to repay a loan of £3000 by 15 annual repayments of £500, the first repayment…
A: The annual yield is that rate at which the present value of all repayment is equal to the loan…
Q: A consumer buys a used car $15500 with monthly payments of $340, an annual interest rate of 4.6%.…
A: The concept of time value of money will be used and applied here. When we take a loan or a mortgage…
Q: Robertson Resorts is considering whether to expand its Pagosa Springs Lodge. The expansion will…
A: Annual Rental income $2,050,000 Less: Annual operating expenses $1,600,000 Annual Operating…
Q: 13. Suppose that an FI holds two loans with the following characteristics. Annual Spread between…
A: An FI holds two loans in the portfolio. All the components needs to calculate the expected return…
Q: The price of a home is $600,000. The bank requires a 20% down payment. The cost of the home is…
A: compound = monthly = 12 Price of home = $600,000 Down payment = 20% Time = t = 30 * 12 = 360…
Q: Farmers World, a firm specializing in fertilizers, is evaluating a proposal to relax the credit…
A: According to bartleby guidelines , If multiple questions are asked , then 1st question needs to be…
Q: explain the general variables that one must consider when devising a hedge with futures.…
A: When devising a hedge with futures, there are several variables that must be considered to ensure…
Q: A company wants to invest some surplus short-term funds and plans to buy a 90- day bank bill with a…
A: The yield on T-bill is calculated using following equation Yield on T-bill = Par value - PricePrice…
Q: The stock market fluctuates in the short-term but tends to increase in the long term, with an…
A: The stock market represents a set of exchanges where buyers & sellers meet for the exchange of…
Q: Meiji Isetan Corporation of Japan has two regional divisions with headquarters in Osaka and…
A: Margin :— It is calculated by dividing net operating income by sales. Turnover :— It is…
Q: This does not follow the format of the question. Only answer the yellow boxes.
A: Bond selling price is the sum of the present value of face value and the present value of interest…
Q: Consider two different forward contracts on the same consumption asset. There are no storage costs.…
A: Two different forward contracts on the same consumption asset but with different maturities are…
Q: Which one of the following has the highest annual percentage rate? O 1.4 percent every 6 month O…
A: We can determine the annual percentage rate using the formula below: APR = (1+given interest rate)q…
Q: Ok, but how did you get the $630,303.03, $607,299.27, $635,114.50 and $676,422.76 under the second…
A: A question was asked by you and a solution was provided. You now have a follow up question, where…
Q: Required information Problem 23-47 (LO 23-3) (Algo) [The following information applies to the…
A: Susie's Sweet shop has the following sales , payroll and property factors. IOWA Missouri…
Q: ou are borrowing $300,000 for 20 years at 4%. Payments will be made monthly. What is the total…
A: Monthly payment refers to an amount being paid every month for the repayment of loan amount…
Q: Which of the following bond has no reinvestment risk? A bond that has a higher coupon rate than the…
A: Let us first understand what reinvestment risk is. Reinvestment risk is the chance of not being able…
Q: You are considering how to invest part of your retirement savings. You have decided to put $200,000…
A: Return on stocks refers to the minimum return to be earned over the investment made initially. It is…
Q: NOTE: Make sure to fill in all the cells that accept Extend to the nearest Calculate the Gross…
A: 1. Gross Profit = Net Sales - Cost of Sales. 2. Sales Trend percentage for current year = current…
Q: Great Lakes Packing has two bond issues outstanding. The first issue has a coupon rate of 3.78…
A: Calculation of before-tax cost of debt of each bond using excel function:
Q: Dani Corporation has 5.5 million shares of common stock outstanding. The current share price is $83,…
A: The capital structure refers to the pattern in which the total assets of a firm are financed by…
Q: Ranger Enterprises is considering pledging its receivables to finance a needed increase in working…
A: Receivables are being pledged to secure working capital loan. There is a service fee involved apart…
Q: emium for a stock with a Beta of .75 of a company when the market risk premium is 6% would quired…
A: Capital asset pricing model (CAPM) facilitates to calculate the required return on stock as shown…
Q: The asking price (initial investment) for a project is $290,000. The end of year after tax cash…
A: Initial Investment = $290,000 Cash flow for year 1 = $80,000 Cash flow for year 2 = $80,000 Cash…
Q: Compute the expected return and standard deviation. (Do not round intermediate calculations and…
A: Expected return = (Probability of Fast growth state*Return for the state)+(Probability of slow…
Q: Which of the following is a difference between stocks and bonds? Select one: a. cash flows to…
A: Stocks are the unit of ownership in the company. Companies issue stocks or shares as equity to the…
Q: When Anthony first pitched a new product idea to his manager, it was very well received because he…
A: The difference between the current value of cash inflows and outflow of cash over a period of time…
Q: 30) Vanzant Corporation has provided the following information concerning a capital budgeting…
A: Net present is the defence between present value of all cash inflow and initial investment NPV = PV…
Q: Several years ago, the Jakobe Company issued a $1,000 par value, non-callable bond that now has 20…
A: Compound = semiannually = 2 Face value = fv = $1000 Time = nper = 20 * 2 = 40 Coupon rate = 7/2 =…
Q: The Reynolds are thinking of refinancing their house. The plan to live in the house for the next…
A: Refinancing cost = $3000 Reduction in payments = $800 Interest rate = 8%
Q: Which of the following statement is incorrect? Classified (staggered) board structure makes is…
A: The stock market, also known as the equity market, is a public market for trading stocks or shares…
Q: Consider the following portfolio choice problem. The investor has initial wealth w and utility u(x)…
A: It's a portfolio choice problem. The utility function is given. The initial wealth has to be split…
Q: put down $40,000 toward the $300,000 cost of building the pool. I financed the pool for three years…
A: The down payment made by investor towards the cost of building is $300,000 , if person has financed…
Q: Financing activities do not include cash outflows to O stockholders to repurchase common stock.…
A: Cash flow from Financial activities is cash inflows and cash outflows from day to day financial…
Q: Allied Food Products is considering expanding into the fruit juice business with a new fresh lemon…
A: Here, Unit Sales in Worst Case is 65,000 units Unit Sales in Best Case is 240,000 units Probability…
Q: 13% compounded annual for 5 years. What is the number of compounding periods that we year
A: Compounding period is number of periods for which compounding of interest is done.
Q: Project L requires an initial outlay at t-0 of $45,000, its expected cash inflows are $13,000 per…
A: The net present value of the project is calculated using following equation NPV = -CF0 +…
Q: Question 3 All else held constant, which one of the following bonds is likely to have the highest…
A: The bonds are considered to be the debt instrument by the company in order to raise finance . There…
Q: Ursus, Incorporated, is considering a project that would have a eight-year life and would require a…
A: NPV represents the value generated by a project for the business in absolute profitability terms.
Q: Caspian Sea Drinks is considering the purchase of a new water filtration system produced by Rube…
A: Operating cash flow is the amount of cash generated by the company on regular basis. It is net…
Q: You have a portfolio with a standard deviation of 30% and an expected return of 18%. You are…
A: Portfolio risk is that risk which is involved in earning the return from the Portfolio. If we invest…
Q: Consider a put option on a stock that currently sells for £100, but may rise to £120 or fall to £80…
A: Option market is a Stock trading strategy. Under which investor will not purchase the share of that…
Q: Fordson has the following financial information for FY 2023 (in thousands): Operating revenue Salary…
A: depreciation expenses = 400,000 Net Income = 1,120,000 Expected Working Capital Increase = 300,000…
Q: A stock that does not pay a dividend must have a capital gains yield that is equal to the required…
A: As per the Capital asset pricing model required return can be calculated as below. Required Return =…
Q: What are the payout methods? Select all that apply. Group of answer choices a. Bank loan b. Buyout…
A: Companies often pay out a percentage of their profits to shareholders as dividends, which can take…
Q: J Average Accounting Return Let's suppose an investment project has the following projected cash…
A: The accounting rate of return (ARR) is a formula that shows the percentage rate of return…
| a. |
have a record of paying what you owe on time.
|
|
| b. |
have little or no current debt.
|
|
| c. |
use credit for regular expenses.
|
|
| d. |
can afford to take on more credit.
|
|
| e. |
have used credit appropriately in the past.
|
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- What is the difference between your credit report and your credit score? What is a good credit score? PLEASE CITE REFERENCES.How do you think the information stated in the credit report and credit score are sufficient enough to know the credit standing of the borrower?Consumers should comparison shop for credit just as they would for any other consumer good or service. How might a consumer's stage of the financial life cycle, income, net worth, or credit score affect the availability of loan sources and the associated cost of the loans offered? Question content area bottom Part 1 Which of the following statements is correct? (Select best answer below.) A. Typically, stages of the financial life cycle, income, and net worth move inversely with credit score, and the cost of the loans tends to be lower in early financial life cycle stages due to a sufficient supply of fund sources. B. Typically, stages of the financial life cycle, income, net worth and your credit score move in unison, and the cost of the loans tends to be lower in early financial life cycle stages due to a sufficient supply of fund sources. C. Typically, stages of the financial life cycle, income, net worth and your credit score…
- Which one of the following best defines the term credit scoring? A. Categorizing customers into groups depending on the length of time it takes each customer to pay for purchases B. Compiling a list of accounts receivable segregated by the length of time each receivable has been outstanding C. Evaluating the opportunity costs of a credit policy D. Process of quantifying the probability of default when granting credit to customers E. Tracking of both the number and the size of customer orders over a period of timeWhat information can best be elicited from a receivable ratio? A. company performance with current debt collection B. credit extension effect on cash sales C. likelihood of future customer bankruptcy filings D. an increase in future credit sales to current customersWhich of the following is not a company that can provide you with a look at your credit score? a. Credit care b. Credit Karma c. Vantage Score d. Credit Sesame
- Which of the following is not use to assess whether credit should be extended to a household? a. The amount of income earned. b. The amount of debt outstanding. c. The history of timely repayments of debt owed. d. Whether the loan is secured by an asset. e. All of the above are used to assess credit.Consumers should comparison shop for credit just as they would for any other consumer good or service. How might a consumer's stage of the financial life cycle, income, net worth, or credit score affect the availability of loan sources and the associated cost of the loans offered? Question content area bottom Part 1 Which of the following statements is correct? (Select best answer below.) A. Typically, stages of the financial life cycle, income, net worth and your credit score move in unison, and the cost of the loans tends to be lower in early financial life cycle stages due to a sufficient supply of fund sources. B. Typically, stages of the financial life cycle, income, and net worth move inversely with credit score, and the cost of the loans tends to be lower in early financial life cycle stages due to a sufficient supply of fund sources. C. Typically, stages of the financial life cycle, income, net worth and your credit score move…Which of the following statements is correct about credit period? A. If a customer purchases goods within the credit period, a cash discount will be allowed to the customer B. If a customer settles the payment within the credit period, a cash discount will be allowed to the customer C. It refers to the period in which customers must settle their debts due D. It refers to the period in which customers need to settle one-third of the debts in order to avoid further interests charged
- What is the difference between a credit score(FICO) and a credit report. How/where can you check your report? How/where can you check your score?Determine the decision nature of each of the following issues: Will we purchase on credit or will we borrow in the short term and pay cash?Hypothetical example of someone with a high debt utilization ratio on one of their credit cards and how they could reasonably improve their score in a concise period, such as one or two months.