What is the stated rate of interest on this loan

Assignment Help Financial Management
Reference no: EM132061070

The Kincaid company has annual sales of 510 units, keep a safety stock of 4 units and has ordering cost equal to $8 per order and carrying cost equal to $40 per unit. What is Kincaid total inventory cost.

The Stilton cheese company borrowed $40,000 from the bank. The loan was for 73 days.it required a compensating balance of 6%. It was also a discount loan. Stilton received proceeds of $36,800 from this loan.

A. What is the stated rate of interest on this loan?

B. If the loan was 146 days, what would the loan proceeds be?

Reference no: EM132061070

Questions Cloud

Find the modified duration : Find the modified duration. what is the approximate change in price?
What will be his after-tax yield to maturity : An investor purchases a 30-year U.S. government bond for $1,020. What will be his after-tax (effective) yield to maturity?
What is weighted average cost of capital : Wentworth's Five and Dime Store has a cost of equity of 12.5 percent. what is the weighted average cost of capital?
Discount rate of return and investment rate of return : What is the difference in basis points between the discount rate of return (DR) and the investment rate of return (IR) on a $30 million commercial paper note
What is the stated rate of interest on this loan : What is the stated rate of interest on this loan? If the loan was 146 days, what would the loan proceeds be?
Bond has coupon rate lower than its yield to maturity : If a bond has a coupon rate lower than its yield to maturity, why is the bond price higher after one year if its yield to maturity doesn’t change?
The buyer of option contract : The buyer of an option contract. The terms of sale generally include which of the following?
Explain the reason why and provide the limitations : Why the perfoamnce of comapnies cannot only be relied on financial measures such as ROC ROE EVA ratios etc . Explain the reason why and provide the limitations
Relevant cash flows for capital budgeting project : Which of the following cash flows SHOULD be accounted for when estimating the relevant cash flows for a capital budgeting project?

Reviews

Write a Review

Financial Management Questions & Answers

  Considering effect on npv of changing multiple parameters

If you analyze a project by considering the effect on NPV of changing multiple parameters, you would be employing which of the following methods?

  What is one share of stock worth today at required return

What is one share of this stock worth today at a required return of 8.5 percent?

  Universal toddler stock as market conditions change

As an equity analyst you are concerned with what will happen to the required return to Universal Toddler' stock as market conditions change.

  What error are they committing

Rex is a smart fellow. He gets an A in a course 80% of the time. what error are they committing? Explain

  What is the net present value of the project

A company wants to expand by buying another machine in order to produce more products. The machine will cost $27457 and installation costs are expected to be $4624. The machine is expected to generate incremental after-tax cash flows of $9903 in the ..

  All-equity plan and levered plan

Franklin Corporation is comparing two different capital structures, an all-equity plan (Plan I) and a levered plan (Plan II).

  Analyze supply and demand for health care services

Analyze the economic trends of the health care payment system. Assess the role of ethics and compliance in the health care finance environment.

  Are all of the elements of a contract present in this case

John wants to sue Susan to recover damages. Can he? Are all of the elements of a contract present in this case? Is there consideration?

  Using financial ratio analysis predict whether or not the

using the financial statements from your selected health care organization in assignment 1 develop a financial plan for

  The introduction of weight loss smoothie

SSC is considering another project: the introduction of a "weight loss" smoothie. T

  Business risks-property-market-employee and customer

It notes that business risks can generally be classified into four categories: property, market, employee, and customer. Using each of the four categories of risk, develop an analysis of how financial management techniques or policies can be used to ..

  Define incremental cash flow

Define “incremental cash flow.”. Calculate the after-tax salvage cash flow. Construct annual incremental operating cash flow statements.

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