Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

1) Suppose that you are a owner of the import business which specializes in sale of floor tiles from around the world. Your business has developed noticeably over the two years since its founding, and you are looking for the way to exchange your accounts receivable to cash more quickly than 90 days it currently takes to collect them.
What kinds of information do factors naturally ask for before initiating client services?

Requirements: min 100 words

2) Your company requires borrowing $100,000 to buy equipment. Equipment will pay for it in one year and the company is considering given alternatives for financing its purchase: Alternative a): Firm’s bank has agreed to lend $100,000 at the rate of= 14%. Interest would be discounted, and the 15% compensating balance would be needed. Though, compensating-balance needs wouldn’t be binding on company as the company usually maintains the minimum demand deposit (checking account) balance of= $25,000 in bank.

Alternative b): Equipment dealer has agreed to finance equipment with one year loan. $100,000 loan would need payment of principal and interest totalling $116,300.

i) Which alternative must your company choose?

ii) If bank’s compensating-balance need were to require idle demand deposits equal to= 15% of the loan, what effect would this have on cost of bank loan alternative?

iii) Describe the risk-return relationship involved in firm’s asset-investment decisions as that relationship pertains to its working-capital management.

iv) prepare down the advantages and disadvantages linked with use of short-term debt.

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M915274

Have any Question? 


Related Questions in Basic Finance

Show how to combine a currency swap paying swiss francs at

Show how to combine a currency swap paying Swiss francs at a floating rate and receiving Japanese yen at a floating rate with another currency swap to obtain a plain vanilla swap paying Swiss francs at a floating rate an ...

Capital investment analysisbramer corporations controller

Capital Investment Analysis Bramer Corporation's controller, Mara, was asked to prepare a capital investment analysis for a robot-guided aluminum window machine. This machine would automate the entire window-casing manuf ...

Conduct a similar analysis on financial leverage for the

Conduct a similar analysis on financial leverage for the same two companies in given Problem. Problem:- Compare the operating leverage of Toyota Motor Corp. (ticker: J:TYMO) with that of Nissan Motor Company Limited (J:N ...

1read the following article on dimensional fund

1. Read the following article on Dimensional Fund Advisors: http://www.wsj.com/articles/making-billions-with-one-belief-the-markets-cant-be-beat-1476989975 Write a composed essay (1 page max) addressing the following que ...

Define a currency option related terms and pricing

Define a currency option, related terms, and pricing factors.

Determine whether each of the following hypotheses is

Determine whether each of the following hypotheses is testable and refutable; if not, explain why. a. The color red as seen by males is different from the color red as seen by females. b. A list of three-syllable words i ...

1 what factors cause the phillips curve to shift2 what is

1. What factors cause the Phillips curve to shift? 2. What is Okun's law? How can Okun's law be used to derive an output gap Phillips curve? 3. A columnist in the Wall Street Journal argues: "Whether you're a borrower or ...

Change in taxable income- using the information in problem

Change in Taxable Income:- Using the information in problem 10, if Nick's itemized deductions increase by $2,000, how will his taxable income be impacted? Problem:- Taxable Income. Nick is married and has three children ...

Given the following information on big brothers inc

Given the following information on Big Brothers, Inc. capital structure, compute the company's weighted average cost of capital (WACC). The company's marginal tax rate is 40%. Round the answer to two decimal places in pe ...

Find two variables that you think should be either

Find two variables that you think should be either positively or negatively correlated. Measure these two variables in a sample of participants (for instance, your classmates). Calculate the Pearson correlation coefficie ...

  • 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