How much is the maximum amount of loan that ABC Co. can get from the bank? (Round up answer to the nearest thousand pesos.) On January 1, 2021, ABC Co. is valuing its equity to acquire additional financingfrom the bank. It gathered the following current values.Current assetsP2,000,000NoncurrentLand???BuildingEquipment3,000,0007,000,0004,000,000Long term investmentsCurrent Liabilities1,500,000Noncurrent Liabilities8,500,000The Land account includes 3 separate lots with details below:OriginalPurchase Price IncreaseAnnualLand Acquisition DateJan. 1, 2010AP2,100,0001,620,0001,800,00010%ВDec. 31, 2013Jan. 1, 20158%C9%Based on current values, ABC Co. is required to have maximum of 50% debtratio upon the approval of the bank loan.

Debt ratio is calculated as total debts (liabilities) divided by total assets. It is a measure of a…

Answered: How much is the maximum amount of loan…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Similar questions

If money is not an economic resource, why is interest paid and received for its use? What considerations account for the fact that interest rates differ greatly on various types of loans? Use those considerations to explain the relative sizes of the interest rates on the following:a. A 10-year $1000 government bond.b. A $20 pawnshop loan.c. A 30-year mortgage loan on a $145,000 house.d. A 24-month $12,000 commercial bank loan to finance the purchase of an automobile.e. A 60-day $100 loan from a personal finance company.
A person would want to have K143.33 in 4 years time by depositing a single cash of K100 in a bank that compound interest continuously. What interest rate does this bank give? What will be the interest on interest that he will receive on his investment?
Assets Reserves Desired Excess Loans Securities Total Assets ($000s) Liabilities 40,000 Deposits 11,200 300,000 60,000 400,000 Advances from Bank of Canada Borrowings Capital Total Liabilities ($000s) 280,000 0 55,000 65,000 400,000
If a car is sold for P1,230,000 and the bank requires 15% downpayment, what is the amount of the mortgage?
Suppose a bank has the following Balance Sheet Assets Liabilities RSA = 120 RSL = 90 FRL = X FRA = 110 (Fixed rate liabilities can be found if needed by determining what number it must be to balance the balance sheet.) Suppose all the Assets and Liabilities were set last year when the interest rate was 10, if the interest rate has changed by 2% since that time what is the current cost from all of the bank's liabilities? Your Answer:
1. If you want to borrow K150,000 which of the following banks should you select? Explain clearly with necessary calculation. (i) Bank A requires quarterly repayments of K12,872.96 at the end of each quarter over 4 years. (ii) Bank B requires a total repayment of K276,360 at the end of 5 years.
Two types of borrowers, type A and B, are requesting a loan in the amount of $44,000. Type A repays with prob. 1, while type B repays with prob. 0.76. If a bank cannot observe type, but believes that fraction 0.8 of the borrower pool is type A, then what is the competitive pooling rate the bank can offer these borrowers? 8.7% 7.7% 6.5% 5.0%
ESSAY ONLY: Mr. Aldrin Pereda and family however, only has a total of P130,000.00 in the bank. If you are the financial consultant of the Pereda family, which financing option will you suggest that Mr. Pereda choose and why?
A bank lends some money to a business. The business will pay the bank a single payment of $184,000 in ten years time. How much greater is the present value (PV) of this payment if the interest rate is 9% rather than 8%? A. $10,506 B. $9,005 C. $6,003 D. $7,504
Please answer only correct with explanation. Fast.

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