User Account

All Pages

What is the annualized cost of the bank? loan

Assignment Help Accounting Basics
Reference no: EM133115170

Question - Paymaster Enterprises has arranged to finance its seasonal? working-capital needs with a? short-term bank loan. The loan will carry a rate of 15 percent per annum with interest paid in advance? (discounted). In? addition, Paymaster must maintain a minimum demand deposit with the bank of 8 percent of the loan balance throughout the term of the loan. If Paymaster plans to borrow ?$120,000 for a period of 4 ?months, what is the annualized cost of the bank? loan?

Reference no: EM133115170

Questions Cloud

Determine the value of operations : Heath Inc. balance sheet shows that it has $10 million short-term investments, $15 million in notes payable, $60 million in long-term bonds, and $15 million in
Prepare a depreciation schedule for the first three years : Prepare a depreciation schedule for the first three years ending 30 June using diminishing balance depreciation method
Implement the Excess 3 to Binary Code conversion : Implement the Excess 3 to Binary Code conversion using NAND gates only using structural level modeling
What proceeds will robinson receive : Robinson's contacted Capital One Bank on July 20; the bank agreed to take over the note at a 6.5% discount. What proceeds will Robinson's receive
What is the annualized cost of the bank? loan : The loan will carry a rate of 15 percent per annum with interest paid in advance? (discounted). What is the annualized cost of the bank? loan
Create marketing project plan : You will create a marketing project plan for a new program and will use this hospital throughout the course.
Reduce the dcf-based npv of an investment : Using Luehrman's framework. Why does higher volatility reduce the DCF-based NPV of an investment while increasing the present value of an opportunity of a real
What is the present value of investment : a. If the appropriate discount rate is 12 percent?, what is the present value of this? investment?
Adopting environmentally-friendly business strategies : Many companies are "going green" or adopting environmentally-friendly business strategies.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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