Abank offers your firm a revolving credit arrangement for up to $56 million at an interest rate of 1.40 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 non-interest-bearing account. assume you have a short-term investment account at the bank that pays .75 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?
Answers: 1
Business, 22.06.2019 06:20
At a small store, a customer enters the front door on average every 8 minutes. a prior study indicated that the time between customers entering the front door during weekdays follows an exponential distribution. what is the probability that the time between customers entering the store on a weekday will be less than or equal to 7? select one: a. 62 b. 43 c. 1/8 d. 7/8 e. 58
Answers: 1
Business, 22.06.2019 13:10
Lin corporation has a single product whose selling price is $136 per unit and whose variable expense is $68 per unit. the company’s monthly fixed expense is $32,400. required: 1. calculate the unit sales needed to attain a target profit of $5,000. (do not round intermediate calculations.) 2. calculate the dollar sales needed to attain a target profit of $8,400.
Answers: 3
Business, 22.06.2019 16:20
Suppose you hold a portfolio consisting of a $10,000 investment in each of 8 different common stocks. the portfolio's beta is 1.25. now suppose you decided to sell one of your stocks that has a beta of 1.00 and to use the proceeds to buy a replacement stock with a beta of 1.55. what would the portfolio's new beta be? do not round your intermediate calculations.
Answers: 2
Abank offers your firm a revolving credit arrangement for up to $56 million at an interest rate of 1...
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