What is the effective rate on loan

Assignment Help Finance Basics
Reference no: EM132403292

A Corp plans to borrow $100,000 from the bank of G in the near future. The bank quotes a rate of 14% with a required a 22% compensating balance. What is the effective rate on this loan?

Reference no: EM132403292

Questions Cloud

What is its yield to maturity : Levi Strauss & Company has an outstanding B-rated bond that has a coupon rate of 12.25%, a face value of $1000 and is currently priced at $1117.50.
How much would you pay for abc stock : How much would you pay for ABC stock based on this information?
Net present value-payback-internal rate of return : Management of Franklin Mints, a confectioner, is considering purchasing a new jelly bean-making machine at a cost of $312,500.
Find the annual after-tax cost of debt for bonds : Marginal corporate income tax rate is %34. Find the annual after-tax cost of debt for these bonds.
What is the effective rate on loan : The bank quotes a rate of 14% with a required a 22% compensating balance. What is the effective rate on this loan?
What level of sales could williamson industries : Williamson Industries has $3 billion in sales and $1 billion in fixed assets. Currently, the company's fixed assets are operating at 95% of capacity.
What are the npv and irr rules : What are the NPV and IRR rules and how are they used in capital budgeting decisions. Use quantitative examples in your answer.
Financial Strategy and Capital Markets Assignment : Financial Strategy and Capital Markets Assignment - Identify 3 topics for possible further development about this presentation
What should be the theoretical futures price for the stock : 1) What should be the theoretical futures price for the stock index? 2) What arbitrage opportunities does this create?

Reviews

Write a Review

Finance Basics Questions & Answers

  What will be the projected eps next year

If Zybeck issues common stock this year, what will be the projected EPS next year?

  New shares and other operating improvements

Because of the proceeds from these new shares and other operating improvements, earnings after taxes increased by 30 percent.

  Evaluate what is the net return

If you bought the bond for the original price of $828 and sold it 1 year later for the price computed in part (b), then what is the net return?

  What is the average accounting rate of return

Auto Detailers is buying some new equipment at a cost of $188, 900. This equipment will be depreciated on a straight-line basis to a zero book value.

  Explain the steps involved in increasing the interest rate

The Fed recently announced that they were raising the federal funds rate in March. Explain the steps involved in increasing the interest rate.

  Calculate the optimal replacement cycle for the machine

The residua value can be ignored. The cost of capital of the company is 11% per year. Calculate the optimal replacement cycle for the machine.

  What is the company wacc

Its cost of equity is 10.3 percent, and its pretax cost of debt is 6.4 percent. If the tax rate is 35 percent, what is the company's WACC?

  Debit or cash versus a credit or check payment

What factors are involved in cash flow management as they relate to various payment methods? What kinds of payment terms might the business venture have with its vendor to help manage its cash flow? Suppose you own a small business. Why might it b..

  What is the expected return of the stock a and b portfolio

Stocks A and B have a correlation coefficient of 0.8. The stocks expected returns and standard deviations are in the table below. A portfolio consisting of 40% of stock A and 60% of stock B is created.

  Two new software development projects are proposed to a

two new software development projects are proposed to a young start-up company. the alpha project will cost 300000 to

  Computation of net present value with given data

Computation of net present value with given data and What is its net present value

  What percentage of time are the pharmacists idle

The pharmacy of a large metropolitan hospital has a counter used exclusively for nurses' requests for medications. The time between requests is estimated to be about five minutes. A pharmacist can handle requests at a rate of 15 per hour. Suppose ..

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