Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

Winegartner Cosmetics is setting up a line of credit at its bank for $5 million for up to two years. The interest rate is 5.875 percent and the loan agreement calls for an annual fee of 40 basis points on any unused balance for the year. If the firm borrows $2 million on the day the loan agreement is signed, what is the firm's effective rate?

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M944216

Have any Question? 


Related Questions in Basic Finance

What type of construction contract provides the greatest

What type of construction contract provides the greatest incentive for a construction contractor to minimize project cost?

Why are direct financing transactions more costly or

Why are direct financing transactions more costly or inconvenient than intermidiated transactions?

Lambda corporation has current liabilities of 430000 a

Lambda Corporation has current liabilities of $430,000, a quick ratio of 1.7, inventory turnover of 4.9, and a current ratio of 3.4. What is the cost of goods sold for Lambda Corporation?

You have an investment with 10 semi-annual cash flows of

You have an investment with 10 semi-annual cash flows of $1000. The first payment is 6 months from today. If the EAR is 11%, what is the present value of this investment?

Assume that you are 30 years old today and that you are

Assume that you are 30 years old today, and that you are planning on retirement at age 65. Your current salary is $40,000 and you expect your salary to increase at a rate of 5% per year as long as you work. To save for y ...

Perform the following hypothesis tests of the population

Perform the following hypothesis tests of the population mean. In each case, draw a picture to illustrate the rejection regions on both the Z and X distributions, and calculate the p-value of the test. H0: μ = 50, H1: μ ...

Essay questions1 npvaccording to the text the npv rule

Essay Questions 1. NPV According to the text, the NPV rule states that "An investment should be accepted if the NPV is positive and rejected if it is negative." What does an NPV of zero mean? If you were a decision-maker ...

Why is knowledge of finance important in running of

Why is knowledge of finance important in running of organizations?

Suppose 90 of kids who visit a doctor have a fever and 35

Suppose 90% of kids who visit a doctor have a fever, and 35% have a sore throat. Whats the probability that a kid goes to the doctor with a fever and a sore throat?

It is not difficult to find examples in news media of

It is not difficult to find examples in news media of organizations' and individuals' perceived or actual ethical abuses. Write 1-2 pages on the below topics. Find a recent news story in which there was unethical conduct ...

  • 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

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate