Credit cards are a grossly inefficient way to borrow money. True or false? Explain and discuss their

Question:

Credit cards are a grossly inefficient way to borrow money. True or false? Explain and discuss their advantages.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Personal Financial Planning

ISBN: 978-1259277184

2nd edition

Authors: Lewis J. Altfest

See More Books

Question Posted: May 05, 2017 10:18 AM

See More Questions

Barretts Boots Ltd has traditionally made sales for cash and on credit only. Management has resisted accepting credit cards on the basis that the business would lose on average a credit card fee of...
Nobel Laureate Amartya Sen has pointed out that one way to prevent starvation during droughts in the poorest countries is to just pay peasants to build roads, sewer lines, and other public goods...
Avoiding Huge Credit Card Debt for College Students College students represent a new push for credit card companies. An amazing 56 percent of students carried a credit card in the most recent study...
A group of 70 students were asked to record the last digit of their social security number. a. Draw a relative frequency histogram using the values 0 through 9 as the class midpoints. What is the...
Aikman (beginning capital, $60,000) and Rory (beginning capital $90,000) are partners. During 2012, the partnership earned net income of $70,000, and Aikman made drawings of $18,000 while Rory made...
Gifford Company experienced the following accounting events during Year 1: Started operations on January 1 when it acquired $32,000 cash by issuing common stock. Earned $32,400 of revenue on account....
What are the six steps in continuous process improvement? LO.1
Newfield Corp. holds a portfolio of trading securities. Suppose that on October 15, Newfield paid $85,000 for an investment in Turok shares to add to its portfolio. At December 31, the market value...
The income statement, balance sheets, and additional information for Video Phones, Incorporated, are provided. 1. Purchased investment in bonds for $110,000 2. Sold land for $26.500. The land...
Refer to the first 100 minutes of the computer simulation of the current operation of Herr Cutter's barber shop presented in Figure 12.7 and summarized in Figure 12.8. Now consider the alternative of...
When is a home equity loan better than refinancing a first mortgage?
Why borrow using secured debt?
Suppose in the regression (6.1) we let Di = 1 for female = - 1 for male Using the data given in Table 6-2, estimate regression (6.1) with this dummy setup and compare your results with those given in...
Below are incomplete financial statements for Hurricane, Incorporated Required: Calculate the missing amounts. Complete this question by entering your answers in the tabs below. Income Statement Stmt...
TBTF Incorporated purchased equipment on May 1, 2021. The company depreciates its equipment using the double-declining balance method. Other information pertaining to the equipment purchased by TBTF...
Coco Ltd. manufactures milk and dark chocolate blocks. Below is the information relating to each type of chocolate. Milk Chocolate Selling price per unit $6 Variable cost per unit $3 Sales mix 4 Dark...
Data related to 2018 operations for Constaga Products, a manufacturer of sewing machines: Sales volume 5,000 units Sales price $300.00 per unit Variable production costs Direct materials 75.00 per...
6. (20 points) Sections 3.1-3.5, 3.7 Differentiate the following functions, state the regions where the functions are analytic. a. cos(e*) b. 1 ez +1 c. Log (z+1) (Hint: To find where it is analytic,...
Paola and Isidora are married; file a joint tax return; report modified AGI of $148,000; and have one dependent child, Dante. The couple paid $12,000 of tuition and $10,000 for room and board for...
One Way Cellular accountants have assembled the following data for the year ended September 30, 2014: Prepare the operating activities section using the indirect method for One Way Cellulars...
Discuss the evidence regarding the ability of most investors to effectively time getting in and out of the stock market. How sensitive are returns to being out of the market for just a few months of...
An investor is thinking about buying some shares of Razortronics, Inc., at $75 a share. She expects the price of the stock to raise to $115 a share over the next three years. During that time, she...
A company has total assets of $2.5 million, total liabilities of $1.8 million, and $200,000 worth of 8 percent preferred stock outstanding. What is the firms total book value? What would its book...
September 23 for $1,050 each. On December 24 , it sold one of the diamonds that was purchased on July 9 . Using the specific identification method, its ending inventory (after the December 24 sale)...
Madsen Motors's bonds have 13 years remaining to maturity. Interest is paid annually, they have a $1,000 par value, the coupon interest rate is 8%, and the yield to maturity is 10%. What is the...
Builder Products, Incorporated, uses the weighted - average method in its process costing system. It manufactures a caulking compound that goes through three processing stages prior to completion....

Credit cards are a grossly inefficient way to borrow money. True or false? Explain and discuss their

Question:

Step by Step Answer:

Not always Credit cards may be efficient where the loan amount is small in amount or the need ...View the full answer

Personal Financial Planning

Students also viewed these Corporate Finance questions