User Account

All Pages

Calculate the EAR

Assignment Help Accounting Basics
Reference no: EM131693579

Question - A firm has a $4 million credit line to borrow at the prime rate (9%). Terms require a 10% compensating balance on borrowed funds and a 0.5% commitment fee on the unused balance. Average borrowings during the year are expected to be $2 million. The firm has $100,000 on deposit at the bank. Calculate the EAR.

Reference no: EM131693579

Questions Cloud

Describe fisher equation and the basic concept : Describe Fisher equation and the basic concept. Summary Efficient or effective market what is the difference between interest rate and nominal interest rate.
What are the management and performance fees : Assume management fees are paid at the beginning of each year and performance fees are taken at the end of each year.
Calculate the cost of sugar smooth ending inventory : Calculate the cost of Sugar smooth's ending inventory at the end of the first year under variable costing.
Compute the cost of ending inventory under variable costing : Variable Costing, Absorption Costing, Inventory Valuation Zeitgeist Company manufactures silicon sleeves for MP3 players.
Calculate the EAR : Average borrowings during the year are expected to be $2 million. The firm has $100,000 on deposit at the bank. Calculate the EAR
Compute the anticipated break-even sales : For the current year ended October 31, Friedman Company expects fixed costs of $14,300,000, a unit variable cost of $250, and a unit selling price of $380.
What are the major socio economic risks : Students should consider the distribution of wealth, (GINI Co-efficient) and other development indicators. What are the major socio economic risks?
What is the price of the bond : Yan Corp. has a 2,000 par value bond outstanding with a coupon rate of 4.9 percent paid semiannually, What is the price of the bond
Discuss significant contribution to teaching and learning : Based on information provided in the chapter, create a chart comparing and contrasting the theories developed by Piaget and Vygotsky

Reviews

Write a Review

Accounting Basics Questions & Answers

  The trial balance of lagrace company includes

The trial balance of LaGrace Company includes the following balance sheet accounts. Identify the accounts that might require adjustment. For each account that requires adjustment, indicate

  Accumulated earnings tax problem

The accumulation was motivaated by his thinking that a depression was just around the corner. Tax savings did not enter his mind. Does the accumulated earnings tax apply to T corporation?

  Prepare all relevant financial statement ratios for 2014

BUACC5901: Accounting & Finance - Prepare all relevant financial statement ratios for 2014 and 2015 (Cash Flow ratios are not required) and comment on the significant trends and relationships revealed by your analytical computations.

  Average rate of return-cost savings wisconsin fabricators

average rate of return-cost savings wisconsin fabricators inc. is considering an investment in equipment that will

  On january 1 2011 the allegheny corporation purchased

on january 1 2011 the allegheny corporation purchased machinery for 115000. the estimated service life of the machinery

  Calculate the total costs if the volume increases

Venus Inc. has fixed costs of $300,000. Total costs, both fixed and variable, are $450,000 when 30,000 units are produced. Calculate the total costs if the volume increases to 60,000 units.

  Compute the degree of operating leverage

Company A is a manufacturer with current sales of $3,000,000 and a 60% contribution margin. Its fixed costs equal $1,300,000. Company B is a consulting firm.

  Ingrum framings cost formula for its supplies cost is 1160

ingrum framings cost formula for its supplies cost is 1160 per month plus 16 per frame. for the month of june the

  Organizational structures-hrm in developing nations

Identify three organizations that include a global emphasis in their mission statement.   Explore their websites and identify their organizational structures.

  Prepare the journal entry to record the payment on december

Prepare the journal entry to record the payment on December 15, 2011, using the gross method of accounting for purchase discounts.

  Simple and compound interest

You invest $1,000 for five years at 5% simple interest at Bank 1. You invest $1,000 for five years at Bank 2 where interest at 5% is compounded annually. Compute the amounts that will be accumulated.

  Forman company has contracted to build a dam over a period

Forman Company has contracted to build a dam over a period of 4 years for $3,000,000. Information relating to the performance of the contract is summarized as follows:

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: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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