Would a bank earn more revenue

Assignment Help Finance Basics
Reference no: EM13270156

Would a bank earn more revenue on a $10 million loan by charging 8% compounded quarterly or 7.9% compounded daily, other things being equal? Show all working in your answer.

Reference no: EM13270156

Questions Cloud

What is the horizontal force acting on the puck : An air puck of mass m1 = 0.15 kg is tied to a string and allowed to revolve in a circle of radius R = 1.1 m on a frictionless horizontal table. What is the horizontal force acting on the puck
Find the internal voltage generated by the generator : A three-phase synchronous generator (Delta-connected) rated at 10KVA, 230 V, has a synchronous reactance of 1.2ohms per phase and an armature resistance of 0.5ohms per phase. (a) Draw the phasor diagram.
What is the full-load speed of shunt-dc motor : A 20-hp, 250 V shunt-DC motor has an armature circuit of 0.22 ohms and a field resistance of 170 ohms . At a low-load, the speed is 1200 rpm and the armature current is 3 A. At full-load, the current is 55 A, and the flux is reduced by 6%
What is the absolute potential at the squares center : the absolute portential at the exact center of a square is 3.0v when a charge of +Q is located at one of the squares corners. What is the absolute potential at the squares center
Would a bank earn more revenue : Would a bank earn more revenue on a $10 million loan by charging 8% compounded quarterly or 7.9% compounded daily, other things being equal? Show all working in your answer.
What is the business-level strategy of wal-mart : What is the business-level strategy of Wal-Mart and differentiation or cost leadership? According to the case, what does Wal-Mart do in order to implement its business-level strategy?
Compute the internal energy of gas : The internal energy of a gas is 1000j. The gas is compressed adiabatically and it's volume deceases by 400cm^3. What is internal energy of gas
Calculate the induced voltage at full-load and half load : A 150-KW, 300 V shunt generator has Ra= 0.1ohms and Rf=60ohms, If the generator operates at the rated voltage, calculate the induced voltage at (a) full-load (b) half-full load (which means the load current is half)
What is the voltage at the output of the second amplifier : Two amplifiers are cascaded, one with a voltage gain of 6 db and the other with a voltage gain of 4. if 1 V is applied at the input of the first amplifier, what is the voltage at the output of the second amplifier

Reviews

Write a Review

Finance Basics Questions & Answers

  Venture investment analyses

You are an businessman whose business requires $10 million in investment. A venture capital organization undertakes due diligence and offers to provide the funds in exchange for 50 percent ownership of the company.

  What will be the change in the percentage terms

A corporate bond with a 7.100 percent coupon has eleven years left to maturity. It has had a credit rating of BB and a yield to maturity of 8.9 percent. The firm has recently become more financially stable and the rating agency is upgrading the bo..

  Find the price the bond with the right adjustments

Find the Price the Bond and Make sure you make the right adjustments to the data

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Future value of annuity exercise

Using the appropriate tabels find out how much will be accumulated in the fund on December 31, 2012 under each of the following situations:

  Foundations of financial management

Mr. Frost controls proxies for 32,000 of the 60,000 outstanding shares of Express Frozen Foods, Corporation Mr. Cooke heads a dissident group that controls the remaining 28,000 shares.

  Calculate the new pe ratio of the company

Pacific Energy Company has a new project that will generate additional earnings of $112,000 each year in perpetuity. Calculate the new PE ratio of the company.

  Information regarding forward contract

Suppose that your company will be receiving 30 million euros six months from now and the euro is currently selling for 1 euro per dollar. If you want to hedge the foreign exchange risk in this payment

  Fisher effect-u.s and euro inflation and currency rates

Suppose that the U.S and Euro nominal interest rate are equal. Subsequently, the U.S. nominal rate decreases while Euro nominal interest rate remains stable.

  Which project should be accepted

Determine the NPV for both projects using a cost of capital of 13% 2. Determine the NPV for both projects using a cost of capital of 8% 3. At an 8% discount rate, which project should be accepted? at 13% discount rate, which project should be acce..

  Determine feasible production combination

he owner of Chips, etc. manufactures two kinds of chips: Lime and Vinegar. He has a limited value of the three ingredients used to produce these chips available for his next production run:

  What is jensen''s cost of preferred stock

Jensen's Travel Agency has 8 percent preferred stock outstanding that is currently selling for $28 a share. The market rate of return is 14 percent and the firm's tax rate is 34 percent. What is Jensen's cost of preferred stock

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