User Account

All Pages

Effective cost of short-term credit

Assignment Help Business Management
Reference no: EM132710040

Effective Cost of Short-Term Credit

Yonge Corporation must arrange financing for its working capital requirements for the coming year. Yonge can: (a) borrow from its bank on a simple interest basis (interest payable at the end of the loan) for 1 year at a 13% nominal rate; (b) borrow on a 3-month, but renewable, loan basis at an 12.00% nominal rate; (c) borrow on an installment loan basis at a 8% add-on rate with 12 end-of-month payments; or (d) obtain the needed funds by no longer taking discounts and thus inc-=reasing its accounts payable. Yonge buys on terms of 1/10, net 40. What is the effective annual cost (not the nominal cost) of the least expensive type of credit, assuming 360 days per year?

Reference no: EM132710040

Questions Cloud

Relaxing collection efforts : The Boyd Corporation has annual credit sales of $2 million. Current expenses for the collection department are $40,000, bad-debt losses are 2.00%
What amount should be reported as accrued salaries payable : The recurring biweekly salaries totaled P7,500,000. Assuming a 5 day work week, what amount should be reported as accrued salaries payable on December 31, 2020
Tightening credit terms : Kim Mitchell, the new credit manager of the Vinson Corporation, was alarmed to find that Vinson sells on credit terms of net 60 days while industry-wide
Estimate the incremental profit per year associated : Management estimates the new station will free up 240 hours, Estimate the incremental profit per year associated with adding a new inspection station?
Effective cost of short-term credit : Yonge Corporation must arrange financing for its working capital requirements for the coming year. Yonge can: (a) borrow from its bank on a simple interest
Discuss the connectivity of water : Discuss the Connectivity of Water, Mineral and Soil Resources
Can the company report a net income by increasing production : Blazer Chemical, Can the company report a net income by increasing production to 100 tons and storing the excess production in inventory?
Finding expected net earnings of a person : What are the expected net earnings of a person who buys one ticket?
What is the yield to maturity of bond : Assume that nominal risk rate is 7%/ what would be the value at the end of 10 years of $1000 invested today with monthly compounding?

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!

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