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!
Lola's Ice Cream recently arranged for a line of credit with Longhorn State Bank of Dallas. The terms of the contract called for a $100,000 maximum loan with interest set at 2% over prime. In addition, Lola's must maintain a 15 percent compensating balance in its demand deposit throughout the year. The prime rate is currently 12 percent.
a. If Lola's normally maintains a $15,000 to $25,000 balance in its checking account with LSB of Dallas, what is the effective cost of credit through the line-of-credit agreement where the maximum loan amount is used for a full year?
b. Recompute the effective cost of credit to Lola's Ice Cream if the firm has to borrow the compensating balance and it borrows the maximum possible under the loan agreement. Again, assume the full amount of the loan is outstanding for a whole year.
Ron's Pharmacy has collected $600 in sales taxes during the March. If sales taxes must be remitted to state government monthly, what entry will Ron's Pharmacy create to demons
A ski resort plans to eventually add 5-new chairlifts. One lift costs $2 million, making slope costs another $1.3 million. The lift allows 300 additional skiers, but there are
Puebla Corporation is a medium-sized wholesaler of automotive parts. It has ten stockholders, who have been paid a total of $1 million in cash dividends for 8 consecutive
You wish to start a college amount for your newborn child; you hope to accumulate $50,000 by seventeen years from now. If a current investment opportunity yields 9%,
Dime a Dozen Diamonds creates synthetic diamonds through treating carbon. every diamond can be sold for $100. The materials cost for a standard diamond is $30.
60 percent of receivables are not collected on time. The bills for those receivables must be reworked by the patient billing department and resubmitted to insurance companies
Identify and describe the different financial markets, their functions, primary instruments, and the investor types. But, my initial answer to this question would have not bee
Boatler Used Cadillac Corporation needs $80,000 in financing over the next 2-years. The company can borrow funds for 2-years at 9% interest every year.
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: info@expertsmind.com
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd