Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

1) Bank offers your firm revolving credit arrangement for up to $68 million at the interest rate of 1.41% per quarter. Bank also needs you to sustain a compensating balance of 6% against unused portion of credit line, to be deposited in the noninterest-bearing account. Suppose you have a short-term investment account at bank which pays .82% per quarter, and suppose that bank utilizes compound interest on its revolving credit loans. Determine the effective annual interest rate (an opportunity cost) on revolving credit arrangement if your firm doesn’t utilize it during the year? Determine the effective annual interest rate on lending arrangement if you borrow= $47 million immediately and repay it in one year? Find out the effective annual interest rate if you borrow= $68 million immediately and repay it in 1 year?

Requirements
Min Pages: 1

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M914837

Have any Question? 


Related Questions in Basic Finance

1 consider the four principles of ethical research with

1. Consider the four principles of ethical research with human participants outlined in the chapter. What procedures are used by behavioral scientists to help ensure that their research conforms to these principles? 2. W ...

The wealth transfer decisionnbspplease respond to the

"The Wealth Transfer Decision" Please respond to the following: Imagine that you are an estate planner and a friend is seeking advice regarding leaving property to his children. He has accumulated approximately $1 millio ...

1 why is the internal revenue service concerned with how

1. Why is the Internal Revenue Service concerned with how partnership agreements in real estate are structured? 2. What is the main difference between the way a partnership is taxed versus the way a corporation is taxed?

1 what procedure is used in your state to handle a pledge

1. What procedure is used in your state to handle a pledge of collateral for a mortgage loan? 2. Explain the relationship and purpose of a promissory note and the two primary forms of security instruments. 3. In a forecl ...

Go to financeyahoocom and enter the name of your favorite

Go to finance.yahoo.com and enter the name of your favorite stock (Apple, Microsoft, Google, or whatever) in the Get Quotes box at the top left of the screen. As you enter the stock name, notice the stock ticker symbols ...

There are 4 primary financial statements used in financial

There are 4 primary financial statements used in financial statement analysis. They are the balance sheet (or statement of financial position), the income statement (or the statement of operations), the statement of chan ...

A random sample of the birth weights of 186 babies has a

A random sample of the birth weights of 186 babies has a mean of 3103 g and a standard deviation of 691 g. Construct a 98% confidence interval estimate of the mean birth weight for all such babies. What is the confidence ...

A bond with a par value of 100000 and a semiannual coupon

A bond with a par value of $1,000.00 and a semiannual coupon has a nominal yield to maturity of 5.30% and a current price of $920.00. If the bond has 6 years to maturity, what is its current yield? 4.23% 4.34% 0.00% 4.18 ...

Evaluate your classmates online surveysfor exercise 13 you

Evaluate your classmates' online surveys. For Exercise 13, you worked in a group to create a survey for other students in your class. Pair up with another group to evaluate each other's questionnaire. As you're completin ...

Household budgetshould be in apa writing style1 create a

Household Budget Should be in APA writing style. 1. Create a simple household budget, including all income and expenses. There are various templates available online to help you do this. Find one that you feel comfortabl ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen