Inland oil arranged a 10000000 revolving credit agreement

Reference no: EM13599668

Inland Oil arranged a $10,000,000 revolving credit agreement with a group of small banks. The firm paid an annual commitment fee of one-half of one percent of the unused balance of the loan commitment. On the used portion of the loan, Inland paid 1.5 percent above prime for the funds actually borrowed on an annual, simple interest basis. The prime rate was at 9 percent for the year. If Inland borrowed $6,000,000 immediately after the agreement was signed and repaid the loan at the end of one year, what was the total dollar cost of the loan agreement for one year?

Reference no: EM13599668

Questions Cloud

Susan ortiz operates a covered parking structure that can : susan ortiz operates a covered parking structure that can accommodate up to 600 cars. susan charges 6 per hour for

Coverall carpets inc is planning to borrow 12000 from the : coverall carpets inc. is planning to borrow 12000 from the bank. the bank offers the choice of a 12 percent discount

One way of getting the needed funds would be to forgo the : the company purchases supplies from a single supplier on terms of 110 net 20 days and it currently takes the discount.

If the selling prices at the split-off point before further : joint products inc. produces two joint products x and v using a common input. these are produced in batches. the common

Inland oil arranged a 10000000 revolving credit agreement : inland oil arranged a 10000000 revolving credit agreement with a group of small banks. the firm paid an annual

Select one of the two accoiunting-related situations : ethical control frameworks in december 2002 time magazine named cynthia cooper coleen rowley and sherron watkins as its

Determine whether bills return-on-sales ration has met the : determine whether bills return-on-sales ration has met the companywide target. has bill done a good or a poor job?

Lyla apothecary worked as a trainee pharmacist on the : lyla apothecary worked as a trainee pharmacist on the weekend and during university holidays for the past 3 years. the

Design a performance report for the chicago omni hotel : the chicago omni hotel is a 750-room luxury hotel offering guests the finest facilities in downtown chicago. the hotel

User Account

All Pages