Maximum loan for which charmin paper company could qualify

Assignment Help Finance Basics

Reference no: EM131787746

Question: Charmin Paper Company sells to the 12 accounts listed below.

Capital Financial Corporation will lend 90 percent against account balances that have averaged 30 days or less; 80 percent for account balances between 31 and 40 days; and 70 percent for account balances between 41 and 45 days. Customers that take over 45 days to pay their bills are not considered acceptable accounts for a loan. The current prime rate is 8.5 percent, and Capital charges 3.5 percent over prime to Charmin as its annual loan rate.

a. Determine the maximum loan for which Charmin Paper Company could qualify.

b. Determine how much one month's interest expense would be on the loan balance determined in part a.

Reference no: EM131787746

Questions Cloud

Recompute the effective cost of interest : Summit Record Company is negotiating with two banks for a $100,000 loan. Fidelity Bank requires a 20 percent compensating balance, discounts the loan.

Creating a select statement that queries : You're creating a SELECT statement that queries the ARTIST_CDS table. The table includes the ARTIST_NAME and CD_NAME columns.

Compare the two groups with histograms : Soda Consumption A StatCrunch survey asked people about their consumption of soda as a percentage of liquid intake.

What should be the amount of the child tax credit : Rowena, a single taxpayer, received $151,000 in salary, $18,000 in income from an S corporation in which she did not materially participate

Maximum loan for which charmin paper company could qualify : Capital Financial Corporation will lend 90 percent against account balances that have averaged 30 days or less; 80 percent for account balances.

How would you customize ppt to starbucks needs : Using the slide show you just watched as a base, how would you customize it to Starbucks needs? What would you add, or take away?

Calculate the numbers from the data at this texts website : A StatCrunch survey asked people how much money they spent for gifts during the holidays.

What parameters should you use in the substring function : You want to start with the third character and extract eight characters. What parameters should you use in the SUBSTRING function?

Find the approximate range and divide by 6 : Here is a proposed method for finding an approximation for the standard deviation based on the histogram: Find the approximate range and divide by 6.

User Account

All Pages