Bank under the terms of its line-of-credit arrangement

Assignment Help Financial Management

Reference no: EM131890072

1. Temporary working capital is

a. the seasonal borrowing capacity of a firm Incorrect

b. incremental working capital necessary to finance slower than expected collections of customer receivables

c. incremental working capital necessary to support peak activity in seasonal businesses

d. additional payroll cost and expenses incurred during seasonal peaks

2. CNN Corporation needs $750,000 and plans to borrow from its bank under the terms of its line-of-credit arrangement. These terms call for a minimum compensating balance of 12 percent. How much will CNN have to borrow to obtain the needed cash?

a. $750,000

b. $798,307

c. $840,000

d. $852,273

Reference no: EM131890072

Questions Cloud

Why did the law come about : How the law has impacted (or how will it impact) your corporation? What are the benefits of the law? (i.e., who has the law helped and why?)

State the decision rule : The following hypotheses are given. H0 : p = 0.81H1 : p > 0.81

Calculate the intervals : In a random sample of 200 automobile insurance claims obtained from all state insurance Company, mean=$615 and s= $135. Calculate the following intervals:

Create a one-page information sheet for our staff : Discuss the purpose of the program. Describe whether the program is effective and offer evidence to support your rationale.

Bank under the terms of its line-of-credit arrangement : Temporary working capital is. CNN Corporation needs $750,000 and plans to borrow from its bank under the terms of its line-of-credit arrangement.

Determine whether the evaluated group is a population : A professor is trying to determine whether performance on the first exam is related to course drop rate in one of her classes. After taking the first? exam

Analyze your organizations resources and capabilities : Evaluate the external environment, specifically the industry in which your organization operates (industry analysis).

Find a presentation of interest on ted : Find a presentation of interest on TED r' and critique its content, visuals, and the presenter's skills (if applicable).

Probability that the first dispensing error : Find the expected number of prescriptions until the first dispensing error, the median number of prescriptions until the first dispensing error

User Account

All Pages