What is the cost of borrowing

Assignment Help Financial Accounting
Reference no: EM132953788

Problem 1: $1million revolving credit at 8% stated interest rate for 1 year; borrowing for the year was $600,000; a required 5% compensating balance on borrowed funds; and a 0.5% commitment fee on any unused credit. What is the cost of borrowing?

Reference no: EM132953788

Questions Cloud

Early exercise of an american put : Discuss whether the following statement is true or false: "The early exercise of an American put is a trade-off between the time value of money and the insuranc
What is the bond coupon rate : A certain bond has a current yield of 6.50?% and a market price of ?$846.15. What is the? bond's coupon? rate?
Provide the calculations for the depreciation for the year : Provide the calculations for the depreciation for the year ended 29 Feb 2016. You are a trainee accountant for The Finance Team, a company
What is the irr for the project : Your company is analyzing purchase of a machine costing $5,900 today. The investment promises to add $18,500 to sales one year from today, $14,500 two years fr
What is the cost of borrowing : A required 5% compensating balance on borrowed funds; and a 0.5% commitment fee on any unused credit. What is the cost of borrowing?
What is the present value of cash flow : You have savings amounting to $1,500 and you expect to save an additional $800 next year. You need your savings to pay for your tuition fees of $800 in 2 years
Calculate the finance expense for the year ended feb : On 1 February 2016 Mzansi Risk entered into a lease agreement with Hollard. Calculate the Finance expense for the year ended 29 Feb 2016
How margin accounts protect investors against credit risk : Critically discuss how margin accounts protect investors against credit risk.
Find out the ratio of market value per share : Suppose a firm's ROE is 20% and its stock's P/e ratio is 15. From these you can deduce that its ratio of market value per share to book value per share is:

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

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