Ask Question
7 September, 18:23

Elaine wants to buy and operate an ice-cream truck but doesn't have the financial resources to start the business. She borrows $10,000 from her friend George, to whom she promises an interest rate of 7 percent, and gets another $20,000 from her friend Jerry, to whom she promises a third of her profits. What best describes this situation?

+1
Answers (1)
  1. 7 September, 19:55
    0
    In financial terms, Jerry is a shareholder of Elaine's ice cream business and George is a bondholder.

    Explanation:

    Jerry is entitled to 33.3% of Elaine's ice cream business profit, so he owns a share of the businesses profit.

    Elaine has to pay George $700 in interest for the money he lent her, the $700 would be the coupon and $10,000 the bond value.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Elaine wants to buy and operate an ice-cream truck but doesn't have the financial resources to start the business. She borrows $10,000 from ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers