Find the annual effective rate if interest is paid quarterly

Assignment Help Financial Management
Reference no: EM131602539

1. Which of the following is not a (source of) short-term financing?

A. Accruals

B. Account payable

C. Note payable

D. Sale of bonds

2. Loan amount is $10,000 and annual interest rate is 12 percent. Find the annual effective rate if interest is paid quarterly.

A. 12 percent

B. 12.55 percent

C. 13.74 percent

D. 13.99 percent

Reference no: EM131602539

Questions Cloud

Find the annual effective rate of discount loan : Loan amount is $10,000 and annual interest rate is 12 percent. Find the annual effective rate of a discount loan.
Assume that interest rate parity exists : IRP Relationship. Assume that interest rate parity (IRP) exists. Assume this information is provided by today’s Wall Street Journal.
Find the acceleration of the particle : A particle is moving on the x-axis, where x is in centimeters. Its velocity, v, in cm/sec, when it is at the point with coordinate x is given.
Briefly describe the different types of reliability : Define reliability and validity in your own words. Briefly describe the different types of reliability and validity
Find the annual effective rate if interest is paid quarterly : Which of the following is not a (source of) short-term financing? Find the annual effective rate if interest is paid quarterly.
Summarize your opportunities for improvement : Summarize your opportunities for improvement. What evidence do you have that these areas provide opportunities for improvement
Draw a possible graph of the temperature t of the yam : You put a yam in a hot oven, maintained at a constant temperature of 200?C. As the yam picks up heat from the oven, its temperature rises.
Finance temporary current assets with short-term debt : Firms choose to finance temporary current assets with short-term debt.
Describe ocbcs unique approach : Explain how OCBC's approach to talent management and employee development been a primary contributing factor to the firm's success.

Reviews

Write a Review

Financial Management Questions & Answers

  What is the stocks value if investors require rate of return

Assume that US Med ware is a constant growth company whose last dividend per share (D0) was $1.00. The dividend is expected to grow at a constant rate of 8 percent per year. What is the stock's value if investors require a 15 percent rate of return?

  What is the dividend paid by stock

The preferred stock of Acme International is selling currently at $110. If your required rate of return is 10 percent, what is the dividend paid by this stock? Bellamee Company has bonds outstanding with five years to maturity and a face value of $5,..

  What is your anticipated price per share or NAV

The mutual fund paid $10million to Goldman Sachs during the month and reduced its other obligations by $27million. The mutual fund is now at $695 and has 50 million shares outstanding, what is your anticipated price per share or NAV?

  Pure discount bonds and mature in exactly one year

Assume bond 1 and bond 2 are both pure discount bonds and mature in exactly one year and two years, respectively. If the bonds have $1,000 par values and investors desire 5% return during the next year and a 7.5% annualized return during the next two..

  Present value of bond to exceed the par value of same bond

We can expect the present value of a bond to exceed the par value of the same bond when.

  What is the investment banker profit

An investment bank pays $24.50 per share for 3,100,000 shares of the KDO company. What is the investment banker’s profit?

  What is the present value of this liability

Asendia USA has an unfunded pension liability of $6 million that must be paid in 20 years. To assess the value of the firm's stock, financial analysts want to discount this liability back to the present. The relevant discount rate is 6.5%. What is th..

  An explanation of the pros and cons of renting versus owning

An explanation of the pros and cons of renting versus owning. An explanation of how rent control laws and condominium conversion laws protect tenants.

  What is the difference between a business and a pure charity

From a financial perspective, briefly describe the concept of a business. What is the difference between a business and a pure charity? What are the three legal forms of business organization and what are their advantages and disadvantages?

  Net present value is generally considered to be method

Given that the net present value (NPV) is generally considered to be the best method of analysis, why could you still use the other methods? You need to use other methods because the net present value method is unreliable when a project has unconvent..

  How much cash does the company have

Donovan Corp. has a book net worth of $9,800. Long-term debt is $5,500. Net working capital, other than cash, is $1,500 and fixed assets are $11,700. How much cash does the company have?

  Retirement account today and expect to earn average return

You are depositing $3,200 in a retirement account today and expect to earn an average return of 8% per year on this money. How much additional income will you earn if you leave the money invested for 25 years instead of just 20 years?

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