Abank offers your firm a revolving credit arrangement for up to $57 million at an interest rate of 1.52 percent per quarter. the bank also requires you to maintain a compensating balance of 3 percent against the unused portion of the credit line, to be deposited in a noninterest-bearing account. assume you have a short-term investment account at the bank that pays .93 percent per quarter, and assume that the bank uses compound interest on its revolving credit loans. what is your effective annual interest rate (an opportunity cost) on the revolving credit arrangement if your firm does not use it during the year?

Pursuant to the video, if the news reporter had challenged the reasonableness of her detention by the coach store, coach could have claimed the which is also known as merchant protection statutes according to the book.

Carver company produces a product which sells for $30. variable manufacturing costs are $15 per unit. fixed manufacturing costs are $5 per unit based on the current level of activity, and fixed selling and administrative costs are $4 per unit. a selling commission of 10% of the selling price is paid on each unit sold. the contribution margin per unit is:

Mr. smith recently faced a choice between being (a) an economics profes-sor, which pays $60,000/yr, or (b) a safari leader, which pays $50,000/yr. after careful deliberation, smith took the safari job, but it was a close call. "for a dollar more," he said, "i'd have gone the other way."now smith's brother-in-law approaches him with a business proposition. the terms are as follows: - smith must resign his safari job to work full-time in his brother-in-law's business.- smith must give his brother-in-law an interest-free loan of $100,000, which will be repaid in full if and when smith leaves the business. (smith currently has much more than $100,000 in the the business will pay smith a salary of $70,000/yr. he will receive no other payment from the business.the interest rate is 10 percent per year. apart from salary considerations, smith feels that working in the business would be just as enjoyable as being an economics professor. for simplicity, assume there is no uncertainty regarding either smith's salary in the proposed business or the security of his monetary investment in it. should smith join his brother-in-law and, if so, how small would smith's salary from the business have to be to make it not worthwhile for him to join? if not, how large would smith's salary from the business have to be to make it worthwhile for him to join?