Home / Questions / Come and Go Bank offers your firm a discount interest loan with an interest rate of 10 per...
Come and Go Bank offers your firm a discount interest loan with an interest rate of 10 percent for up to $26 million, and in addition requires you to maintain a 2 percent compensating balance against the face amount borrowed. Required: What is the effective annual interest rate on this lending arrangement? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).)
2. In exchange for a $400 million fixed commitment line of credit, your firm has agreed to do the following: 1. Pay 1.84 percent per quarter on any funds actually borrowed. 2. Maintain a 2 percent compensating balance on any funds actually borrowed. 3. Pay an up-front commitment fee of 0.29 percent of the amount of the line. Required: Based on this information, answer the following: (a) Ignoring the commitment fee, what is the effective annual interest rate on this line of credit? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).) Effective annual rate % (b) Suppose your firm immediately uses $214 million of the line and pays it off in one year. What is the effective annual interest rate on this $214 million loan? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).) Effective annual rate %
3. YouAc€?cve worked out a line of credit arrangement that allows you to borrow up to $60 million at any time. The interest rate is .592 percent per month. In addition, 2 percent of the amount that you borrow must be deposited in a noninterest-bearing account. Assume that your bank uses compound interest on its line-of-credit loans. Required: (a) What is the effective annual interest rate on this lending arrangement? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).) Effective annual rate % (b) Suppose you need $33.32 million today and you repay it in four months. How much interest will you pay? (Do not round intermediate calculations. Enter your answer in dollars, not millions of dollars (e.g., 1,234,567). Round your answer to 2 decimal places (e.g., 32.16).) Total interest paid $
4. Consider the following financial statement information for the Amaryliss Corporation: Item Beginning Ending Inventory $10,082 $10,880 Accounts receivable 5,351 5,881 Accounts payable 5,652 5,993 Net sales $139,003 Cost of goods sold 86,813 Required: Assume all sales are on credit. Calculate the operating and cash cycles. (Do not round intermediate calculations. Round your answers to 2 decimal places (e.g., 32.16).) Operating cycle days Cash cycle days
May 02 2020 View more View Less
PLEASEEE HELPP!!! During the month of January, Garcia Manufacturing began production on Jobs 51 and 52, and completed Jobs 50 and 51. Jobs 49 and 50 were also sold on ...
Jun 01 2018Problem 3. (25 points) Suppose f(x) = h(g(x)k(x)). If g(1) = 5, k(1) = 0, h(1) = -1, g'(1) = 7, k'(1) = -8, h'(1) = 2, and h'(0) = 6, find f'(1). Answer: f'(1) =
Apr 27 2021Problem 7-4A (Part Level Submission) Last year (2013), Richter Condos installed a mechanized elevator for its tenants. The owner of the company, Ron Richter, recently re...
Jun 24 2020What are nonfinancial measures, and how does a forensic accountant use them?
Jun 27 2020Suppose that the world price of tin is above the target (ceiling) price that is defined by an international commodity agreement. To move the world price toward the target...
Nov 23 2019Consider the cooking process of a roast beef in an oven. Would you consider this to be a steady or transient heat transfer problem? Also, would you consider this to be on...
Jul 22 2020Evaluate the common usage rock and uncemented sediments for construction >
May 20 2020The U.S. economy is the largest in the world. What two factors primarily explain this? What makes the U.S. economy unique?145. Differentiate between an open and a closed ...
Dec 16 2019Detail how managers and organisations can influence creativity and innovation
Mar 17 2020Mimi conducted a survey on a random sample of 100 adults. 60 adults in the sample chose banana as his / her favorite fruit. Construct a 90% confidence interval estimate o...
Apr 16 2020