Company required by law to report to potential customers

Assignment Help Financial Management
Reference no: EM13875993

Belk Department Store charges a daily rate of 0.01 percent on its store credit cards. What interest rate is the company required by law to report to potential customers?

40.04 percent

35.98 percent

39.00 percent

36.50 percent

40.48 percent

Reference no: EM13875993

Questions Cloud

Compounding period is the same as the payment period : Find the payment that should be used for the annuity due whose future value is given. Assume that the compounding period is the same as the payment period. $79,000; monthly payments for 11 years; interest rate 6.3%.
Indifferent between cash now or taking the annuity : 1) You have decided to open up a savings account. Your bank has offered you three interest options: A) 10.55% annually, B) 10.40% quarterly and C) 10.30% weekly. Which do you prefer? You just won the Powerball, as a result you have the choice between..
Develop a policy for your institution : The abuse of both alcohol and drugs has increased to a dangerous level at the healthcare facility where you work as an HR manager. You decide to develop a policy for your institution to minimize alcohol and drug abuse by your staff
What is the present value of perpetuity : You have decided to put a $100 a week into a savings account that offers 2.6% compounded weekly. How much would you have in your account after 6 years? Using problem 2 how much would you have if you were to make your first payment today, i.e. made it..
Company required by law to report to potential customers : Belk Department Store charges a daily rate of 0.01 percent on its store credit cards. What interest rate is the company required by law to report to potential customers?
Prepare the variable-cost and full-cost income statements : Prepare the variable-cost and full-cost income statements for 2009 and 2010. Prepare a reconciliation and explanation for the differences between full-cost and variable-cost operat- ing income for both years.
Opened two savings accounts : Sixty years ago, your grandparents opened two savings accounts and deposited $200 in each account. The first account was with City Bank at 3 percent, compounded annually. The second account was with Country Bank at 3.5 percent, compounded annually. W..
Difference in operating income of variable and full costing : Write a brief memo to the firm to explain the difference in operating income between variable costing and full costing.
What would the annual increase in the value of certificate : Suppose that in 2010, a $10 silver certificate from 1898 sold for $11,200. For this to have been true, what would the annual increase in the value of the certificate have been?

Reviews

Write a Review

Financial Management Questions & Answers

  What is the value of this annuity today if the discount rate

Tara Knowles buys an annuity that will pay her $24,000 a year for 25 years. The payments are paid on the first day of each year. What is the value of this annuity today if the discount rate is 8.5 percent?

  What will be the annual interest cost

Blandet Company has $4,000,000 in assets. It has decided to finance 30% with long term financing (9%rate) and 70% with short-term financing (7%) rate. What will be the annual interest cost?

  What is the portfolio beta

You own a stock portfolio invested 20 percent in Stock Q, 20 percent in Stock R, 20 percent in Stock S, and 40 percent in Stock T. The betas for these four stocks are 1.53, 1.38, 0.9, and 1.01, respectively. What is the portfolio beta?

  Mutual fund-common shares in buy me corporation

Figure 3.6 gives a decision tree for Mr. Smart’s situation. Mr. Smart is risk-averse. The amount of utility he derives from a payoff is Utility = 2In (payoff). Because of a planned major purchase, Mr. Smart intends to sell his investment one year lat..

  Settle public sector collective bargaining impasse

Do you believe binding arbitration should be used to settle a public sector collective bargaining impasse? Why or why not?

  Calculate company weighted average cost of debt

Calculate Company A’s weighted average cost of debt, given the following information: (a) Tax Rate: 15%, (b) Average Price of Outstanding Bonds: $985.00, (c) Coupon Rate: 4%, (d) NPER: 12, (e) Debt: $25,000,000, (f) Equity: $22,000,000, and (g) Prefe..

  Appropriate expected rates of return for three securities

The expected return for the general market is 13.0 percent 9.2, and the risk in the market is 9.2 percent. Tasaco, LBM, and Exxos have betas of 0.838, 0.652 and 0.572 respectively. What are the appropriate expected rates of return for the three secur..

  What is the present value of the perpetuity

What is present value of perpetuity of $100 per year with first payment started 5 years from today if appropriate discount rate is 5%? If discount rate is increased to 15% what is the present value of the perpetuity?

  Find the sustainable and internal growth rates for a firm

Find the sustainable and internal growth rates for a firm with the following ratios: asset turnover = 1.40; profit margin = 8%; payout ratio = 25%; equity/assets = .70.

  What is the bond''s nominal yield to call

Calculate the YTM and YTC under those conditions, what is your stock's intrinsic value and what is the WACC - What is the bond's nominal yield to call?

  Use one paragraph to discuss the concepts and the other

important in order to receive full credit you need to answer the questions with a minimum of twoparagraphs. use one

  What are the main features of a traditional corporation

What are the main features of a traditional corporation? What are the main features of a Limited Liability Company? What are the similarities and differences we can look to when trying to determine which entity will best suit our needs in a given sit..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd