+1-415-670-9189
info@expertsmind.com
Earn an effective annual return on its consumer loans
Course:- Financial Management
Reference No.:- EM13891871





Assignment Help >> Financial Management

Magnus Credit Corp. wants to earn an effective annual return on its consumer loans of 17.75 percent per year. The bank uses daily compounding on its loans. What interest rate is the bank required by law to report to potential borrowers? (Round your answer as directed, but do not use rounded numbers in intermediate calculations. Use 365 days in a year. Enter your answer as a percent rounded to 2 decimal places (e.g., 32.16).)




Put your comment
 
Minimize


Ask Question & Get Answers from Experts
Browse some more (Financial Management) Materials
Assume that Sunstorm's EIG VI (2009) fund closes with $10B in committed capital and that the entire amount is immediately called. One billion dollars is reserved for fees and
Johnson Tire Distributors has an unlevered cost of capital of 11 percent, a tax rate of 33 percent, and expected earnings before interest and taxes of $1,300. The company has
Skip Towne goes into Frank’s Friendly Furniture Sales and purchases a living room set and bedroom suite for $1,950 total. Skip has to make payments of $100 per month for 36 mo
Royal Mediterranean Cruise Line's common stock is selling for $22 per share. The last dividend was $1.20, and dividends are expected to grow at a 6% annual rate. Flotation cos
With celebrity? bonds, celebrities raise money by issuing bonds to investors. The royalties from sales of the music are used to pay interest and principal on the bonds. In Apr
Clifford, Inc., has a target debt-equity ratio of .71. Its WACC is 8.5 percent, and the tax rate is 34 percent. If the company's cost of equity is 11.1 percent, what is its pr
Bigg and Talle Corporation uses the percentage-of-sales method to estimate uncollectibles. Net credit sales for the current year amount to $5,000,000 and management estimates
Annuity A makes annual year-end payments of $976.50 for each of the next 10 years, while investment B makes annual year-end payments of $600 per year forever. At what interest