Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Business Management Expert

Yonge Corporation must arrange financing for its working capital requirements for the coming year.

Yonge can (a) borrow from its bank on a simple interest basis (interest payable at the end of the loan) for 1 year at a 12 percent nominal rate; (b) borrow on a 3-month, but renewable, loan basis at an 11.5 percent nominal rate; (c) borrow on an installment loan basis at a 6 percent add-on rate with 12 end-of-month payments; or (d) obtain the needed funds by no longer taking discounts and thus increasing its accounts payable.

Yonge buys on terms of 1/15, net 60. What is the effective annual cost (not the nominal cost) of the least expensive type of credit, assuming 360 days per year?

Business Management, Management Studies

  • Category:- Business Management
  • Reference No.:- M92177854

Have any Question?


Related Questions in Business Management

Lets say there are 10000 lawyers in the usa and 500 of them

Let's say there are 10,000 lawyers in the USA and 500 of them are Oreo cookie lovers. These 500 lawyers consume a total of 500 Oreo cookies in a given time period out of 2,000 cookies sold. What is the BDI for Oreo cooki ...

This chart lists the estimated lengths and arrival times

This chart lists the estimated lengths and arrival times for 5 jobs. ? In what order do these run using FCFS? ? What is the average turn-around time (difference in time between a job's arrival and its completion)? ? In w ...

Alexis harrington received an inheritance of 95000 and she

Alexis Harrington received an inheritance of $95,000, and she is considering two speculative investmentsâ€"the purchase of land and the purchase of cattle. Each investment would be for 1 year. Under the present (normal) ...

How do you think diversity communication and organisational

How do you think diversity, communication and organisational structure could potentially constitute strong aspects of organisational culture? Why is it important for the manager to consider this relationship?

Make a function first-char that consumes a nonempty string

Make a function first-char that consumes a nonempty string and produces a string consisting of the first character in the original string. Do not use string-ref.

Explain the contributions that teams make and how managers

Explain the contributions that teams make and how managers can help teams be more effective.

Nordstrom inc is a seattle-based department store rivaling

Nordstrom Inc. is a Seattle-based department store rivaling the likes of Saks Fifth Avenue, Neiman Marcus, and Bloomingdale's. Nordstrom is a Hall of Fame member of Fortune magazine's "100 Best Companies to Work For" lis ...

In the spring of 2015 three utility companies in the

In the Spring of 2015, three utility companies in the Ukraine received email purporting to come from Ukraine's parliament, the Rada. It was addressed to employees that were used to receiving communications from the Rada ...

Evaluate the processes that are involved in a systems

Evaluate the processes that are involved in a systems development lifecycle (SDLC) and how the processes relate to each other.

What type of data values are quantitative and the number of

What type of data values are quantitative and the number of values is finite or countable?

  • 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

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As