What will be the annual interest cost

Assignment Help Financial Management
Reference no: EM13871235

Blandet Company has $4,000,000 in assets. It has decided to finance 30% with long term financing (9%rate) and 70% with short-term financing (7%) rate. What will be the annual interest cost?

Reference no: EM13871235

Questions Cloud

Dividend is not expected to grow in the future : The current stock price of Largent, Inc., is $44.12. If the required rate of return is 18 percent, what is the dividend paid by this firm if the dividend is not expected to grow in the future?
Interest rates on one year t-bonds yield : Today, interest rates on 1-year T-bonds yield 1.4%, interest rates on 2-year T-bonds yield 2.1%, and interest rates on 3-year T-bonds yield 3.5%. a. If the pure expectations theory is correct, what is the yield on 1-year T-bonds one year from now? Be..
Cornelius''s incremental borrowing rate : On January 1, 2010, the Somerville Corporation sold a used truck to the Cornelius Company and accepted a $28,000 non interest bearing note due January 1, 2013.
Calculate the firms degree of operating leverage : Carolina Fastener, Inc., makes a patented marine bulkhead latch that wholesales for $6.12. Each latch has variable operating costs of $3.42. Fixed operating costs are $49,600 per year. Calculate Carolina Fastener's operating breakeven point. Calculat..
What will be the annual interest cost : Blandet Company has $4,000,000 in assets. It has decided to finance 30% with long term financing (9%rate) and 70% with short-term financing (7%) rate. What will be the annual interest cost?
Management expects this lack of growth to continue : Knight Supply Corp. has not grown for the past several years, and management expects this lack of growth to continue. The firm last paid a dividend of $4.25. If you require a rate of return of 15.5 percent, what is the current value of this stock to ..
How much should you deposit now in bank account : You are planning to make 18 monthly withdrawals beginning at the end of the sixth month. You plan to withdraw $109 in the sixth month and increase your withdrawals by $12 over the previous month’s withdrawal. How much should you deposit now in a bank..
How should each subsidy be reported in rrt : How should each subsidy be reported in RRT, statement of revenues, expenses, and changes in net position?
Prepare journal entries to record the following transactions : RecRoom Equipment Company received an $ 8,000, six-month, 6 percent note to settle an $ 8,000 unpaid balance owed by a customer. Prepare journal entries to record the following transactions for RecRoom. Rather than use letters to reference each trans..

Reviews

Write a Review

Financial Management Questions & Answers

  What is the modified internal rate of return mirr how is it

bullwhat is net present value npv how is it calculated and what is the basic premise of its decision rule?bullwhat is

  What is correlation coefficient between returns of two stock

The covariance of the returns between Willow Stock and Sky Diamond Stock is 0.0940. The variance of Willow is 0.1890, and the variance of Sky Diamond is 0.1210. What is the correlation coefficient between the returns of the two stocks?

  Intangible assets be disclosed on the balance sheet

How should intangible assets be disclosed on the balance sheet?

  What is the expected return of the stock

The Bumble Bee. Corp. has a beta of 1.45. You observed the risk free rate of return to be 6.5% and the market risk premium of 5%. What is the expected return of the stock?

  Advantages and disadvantages to a firm of financial hedging

What are the advantages and disadvantages to a firm of financial hedging of its operating exposure compared to operational hedges (such as relocating its manu-facturing site)?

  Annual discount interest rate

Find the present value of $7,000 to be received one year from now assuming a 3 percent annual discount interest rate. Also calculate the present value if the $7,000 is received after two years.

  A suppose the second last 127 million and last 767 million

a. suppose the second last 12.7 million and last 76.7 million mortgage loans in loan group 1 in the nationwide

  What is the return on the preferred stock

What is the value of a common stock if the firm's earnings and dividends are growing annually at 10%, the current dividend is $1.32, and investors require a 15% return on investment? What is the stock's rate of return if the market price of the stock..

  Considered to be genius at picking stocks-financial crisis

Warren Buffet, the head of Berkshire Hathaway, is considered to be a genius at picking stocks because during the financial crisis of 2007–2009:

  Retirement strategy is to invest

Your retirement strategy is to invest 500 per month in an equity mutual fund and 200 per month in a bond fund. Your retirement date is 30 years from now. The expected return on the stock fund is expected to be 8% and the expected return on the bond f..

  What is the hospitals current receivables balance

A company has annual revenues of $14, 400,000. It has 2 major third party payers, and some of its patients are self payers. The hospital's patient account manager estimates that 10% of the hospital's billings are paid on day 30. 60% are paid on day 6..

  What is jacks annualized holding period return

Jack purchased 100 shares of Green Forest INC stock of at a price of $157.65 three months ago. He sold all stocks today for $158.57. During this period the stock paid dividends of $5.67 per share. What is Jacks annualized holding period return ( annu..

Free Assignment Quote

Assured A++ Grade

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd