Calculate the firm annualized cost of funds

Assignment Help Finance Basics
Reference no: EM1366685

MZC Ltd draws $2,000,000 in 180-day BABs at the current market rate of 7.0 percent per annum What proceeds will the firm receive from discounting the bill if the bank charges an acceptance fee of 1.5 percent? What is the firm's annualized cost of funds taking the acceptance fee into account? With all calculations.

Reference no: EM1366685

Questions Cloud

Marketing-related opportunities to healthcare : What do issues such as quality of service and enhancing the safety of patients present in ways of marketing-associated opportunities to a healthcare-related organization?
Explain two-bit system noninterference-secure : The initial state is not output (in contrast to the example). Is this version of two-bit system noninterference-secure with respect to Lucy? Why or why not?
Computing revenue maximizing price : If the goal of the transit authority was to maximize total revenues, what is the new price it should set? Also, what would the total revenue raised in this new price scheme?
Calculate the firm annualized cost of funds : MZC Ltd draws $2,000,000 in 180-day BABs at the current market rate of 7.0 percent per annum What proceeds will the firm receive from discounting the bill if the bank charges an acceptance fee of 1.5 percent?
Determining price of beans : Assume the price of beans rises from $1.00 a pound to $2.00 a pound, quantity demanded falls from 10 units to 6 units. In this example, the demand for beans is said to be ______
Values on a health care system : Describe the implications of beliefs and values on a health care system?
Deriving the supply curve : Consider the relationship given by QCars = 100 + 4xPCars - 2xPSteel - 0.2xPWorkers, where QCars is the quantity of cars (in thousands), PCars is the price of cars and PWorkers is the wage earned by autoworkers.
Stereotypes in business and the workplace : Stereotypes in Business and the Workplace - What positive or negative stereotypes do you hold about different jobs or careers?

Reviews

Write a Review

Finance Basics Questions & Answers

  Administration and enforcement of erisa

How do these agencies below impact the administration and enforcement of ERISA:

  Computing future exchange rate

You are considering a project in Poland which has initial cost of 275,000PLN. The project is expected to return one-time payment of 390,000PLN four years from now.

  Describe benefit from activity based costing

Explain how Activity Based Costing can benefit Corporations. You may wish to give an example of a company where activity based costing could be applied.

  Roi analysis using dupont model

Charlie's Furniture Store has been in business for several years. The firm's owners have described the store as a high-price, highservice?

  Calculate the npv of the investment

The Metallica Heavy Metal Mining (MHMM) Corporation wants to diversify its operations. Calculate the NPV of the investment.

  Ratio of the risk premiums on two assets

Using the CAPM, show that the ratio of the risk premiums on two assets is equal to the ratio of their betas.

  Necessary financing to support the anticipated future growth

A company needs about $20-25 million dollars to expand. The following is included for data. It is privately owned and sells proprietary products in the medical field.

  Prepare journal entries to record depreciation expenses

A corporation purchased a new factory equipment for $650,000. The machine is expected to be productive for 5 years and, at the end of the five years, it is expected to be worth $50,000 in salvage value.

  Muni bond amortization

We have a muni bond for $14 million, twenty year term, 5 percent interest, semi annual payments in April and November, the April payments are interest only,

  Lender expect the inflation rate to be in the loans second

Illustrate what does the lender expect the inflation rate to be in the loan's second yr?

  Advantages and disadvantages of debt financing

How does the use of debt financing affect the rate of return that shareholders require on their investment in the firm's shares and also discuss and explain the advantages and disadvantages of debt financing.

  Finding future value and present value

Dr. J. wishes to purchase a Dell computer which will cost $2,788 four years from today. He would like to set aside an equal amount at the end of each year in order to accumulate the amount required.

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