Select the correct choice that completes the sentence below. The rebate amount is equal to the rebate fraction O A. multiplied by the total finance charge O B. multiplied by the number of months of a loan OC. divided by the number of weeks of the loan O D. divided by the total interest

Select the correct choice that completes the sentence below. The rebate amount is equal to the rebate fraction O A. multiplied by the total finance charge O B. multiplied by the number of months of a loan OC. divided by the number of weeks of the loan O D. divided by the total interest

Corporate Financial Accounting

15th Edition

ISBN:9781337398169

Author:Carl Warren, Jeff Jones

Publisher:Carl Warren, Jeff Jones

Chapter14: Financial Statement Analysis

Section: Chapter Questions

Problem 14.7BE: To determine: Times interest earned ratio Given info: Income before income tax and interest expense....

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Concept explainers

Cost of Credit

The cost of credit is an extra amount that the borrower has to pay besides the loan amount. These credit charges may vary from loan to loan. The cost of credit includes interest charges, maintenance charges, and arrangement charges. Some of the costs are mandatorily collected by the lender based on the loan amount and tenure of the loan. The cost of credit is also called finance charges of the credit.

Question

Select the correct choice that completes the sentence below.
The rebate amount is equal to the rebate fraction
O A. multiplied by the total finance charge
O B. multiplied by the number of months of a loan
OC. divided by the number of weeks of the loan
O D. divided by the total interest

Expert Solution

Introduction

Rebate is a term used in short-selling, which is selling securities that a trader does not own. In order to sell a stock that isn't owned, the trader must borrow the stock in order to deliver it to the buyer. When an investor places a short sale trade, that individual must deliver the stock to the buyer on the trade settlement date.

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1) The question screenshot has been attached down below answer question 16 a,b,c,d,e,f step-by-step.
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