Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Matthews Manufacturing is negotiating a one-year credit line with its bank, Worldwide Bank. The amount of the credit line is $6.5 million with an interest rate set at 1.5 percent above the prime rate. A commitment fee of 0.50 percent (50 basis points) will be charged on the unused portion of the line. No compensating balances are required, and the loan is made on a 365-day basis.
a. If the prime rate is assumed constant at 4.25 percent during the term of the loan and Matthews' average loan outstanding during the year is $5.0 million, calculate the firm's effective borrowing rate (EBR).
b. What effect would an increase in the prime rate to 4.75 percent for the entire year have on Matthews' effective borrowing rate (EBR) calculated in part (a)?
c. What effect would a decrease in Matthews' average loan outstanding during the year to $4.0 million have on the effective borrowing rate (EBR) calculated in part (a)?
d. Using your findings in parts (a), (b), and (c), compare, contrast, and discuss the effects of interest rate changes versus changes in the average loan outstanding on Matthews' effective borrowing rates.
mastery problem breakeven analysis procrastinators anonymous pa is hosting their annual convention this coming year in
commonwealth company has 100 bonds outstanding maturity value 1000. the required rate of return on these bonds is
Determine the expected return on a portfolio that is equally invested in two assets
The discount rate of a fund is 4% convertible quarterly. If the total amount of interest earned for a deposit of $X is $500 during a four year period, how much total interest is earned for a deposit $X during a fifteen year period?
Describe how different allocations between the risk-free security and the market portfolio can achieve any level of market risk desired.
Your analysis should include an overview of the company, ratio analysis, valuation and susceptibility to bankruptcy measures. Remember the key here are: durable competitive advantage and margin of safety
Suppose you are the financial manager at CYA Corporation and you are considering three different levels of working capital. You estimate that sales would reduce slightly with lowered levels of current assets and you suppose that your forecasts are re..
General Matter's outstanding bond issue has a coupon rate of 11.4%, and it sells at a yield to maturity of 9.20%. The firm wishes to issue additional bonds to the public at face value. What coupon rate must the new bonds offer in order to sell at ..
a company reports the following income statement and balance sheet information for the current yearnet income
The standard deviation of the market index portfolio is 25%. a. What is the mean excess return of the index portfolio?
1. time value of money calculations are used to determine the value of potential retirement benefits. if a person
If investors expect a return of 12% on a stock that is expected to have a dividend yield of 4% next year, what is the expected growth rate on this stock?
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd