Determine the real cost of the debt

Assignment Help Business Management
Reference no: EM132828384

If a firm borrows $100M from a commercial bank with interest rate 8%. But the bank requires the firm to put 5% of the total borrowings in the bank as a compensating balance. What's the real cost of the debt?

Reference no: EM132828384

Questions Cloud

Discuss two possible aspects of personalities : Discuss two possible aspects of their personalities or character that could have explained their behavior.
How many years must you live to make lifetime subscription : If you can earn 4.0% on your funds and that the annual renewal rate will remain constant, how many years must you live to make the lifetime subscription
How teachers reach out to students who are in silent period : According to Jim Cummins, social language (BICS) takes 1-3 years while academic language (CALPS) is more difficult and takes 5-8 years to develop.
Which transactions is not a contingent liability : Which transactions is NOT a contingent liability? A customer has approached Mark regarding an issue with the product warranty.
Determine the real cost of the debt : But the bank requires the firm to put 5% of the total borrowings in the bank as a compensating balance. What's the real cost of the debt?
How much is the monthly payment : Question - A consumer loan worth P75,000 is to be repaid in 18 months at 12% convertible monthly. How much is the monthly payment
Transforming thinking : Global strategy making involves a major shift in focus from analytic, reactive and past-focused thinking to creative, proactive and future-oriented thinking.
Do think that investor would view blue ltd more favourably : Do think that an investor would view Blue Ltd more favourably compared to Yellow Ltd? Explain your answer as per the requirement in AASB124
How much is this investment worth at the end of year four : You are able to reinvest these cash flows at 10.64 percent, compounded annually. How much is this investment worth at the end of year four

Reviews

Write a Review

Business Management Questions & Answers

  Caselet on michael porter’s value chain management

The assignment in management is a two part assignment dealing 1.Theory of function of management. 2. Operations and Controlling.

  Mountain man brewing company

Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. Due to increase in the preference for light beer drinkers, Chris Prangel wants to introduce light beer version in Mountain Man. An analysis into the la..

  Mountain man brewing company

Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. An analysis into the launch of Mountain Man Light over the present Mountain Man Lager.

  Analysis of the case using the doing ethics technique

Analysis of the case using the Doing Ethics Technique (DET). Analysis of the ethical issue(s) from the perspective of an ICT professional, using the ACS Code of  Conduct and properly relating clauses from the ACS Code of Conduct to the ethical issue.

  Affiliations and partnerships

Affiliations and partnerships are frequently used to reach a larger local audience? Which options stand to avail for the Hotel manager and what problems do these pose.

  Innovation-friendly regulations

What influence (if any) can organizations exercise to encourage ‘innovation-friendly' regulations?

  Effect of regional and corporate cultural issues

Present your findings as a group powerpoint with an audio file. In addition individually write up your own conclusions as to the effects of regional cultural issues on the corporate organisational culture of this multinational company as it conducts ..

  Structure of business plan

This assignment shows a structure of business plan. The task is to write a business plane about a Diet Shop.

  Identify the purposes of different types of organisations

Identify the purposes of different types of organisations.

  Entrepreneur case study for analysis

Entrepreneur Case Study for Analysis. Analyze Robin Wolaner's suitability to be an entrepreneur

  Forecasting and business analysis

This problem requires you to apply your cross-sectional analysis skills to a real cross-sectional data set with the goal of answering a specific research question.

  Educational instructional leadership

Prepare a major handout on the key principles of instructional leadership

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