NCG Ltd has just issued $5 million worth of 90-day bank bills at the current market interest rate of 6.25% p.a. The total dollar amount NCG Ltd will receive from this issue is closest to

Q: a. Paradise Retailers, Inc. (PRI) determined that $1,500,000 is needed for cash transactions made…

A: Total cash needed (T) = $1,500,000Fixed charges (F) = $12.95Interest rate (I) = 4.5%

Q: A bank starts with $200 in deposits. The required reserve ratio is 10%. The bank loans out 70% of…

A: The bank keeps an amount as a reserve from their deposits so that they could be used at the time of…

Q: A bank has $770 million in checkable deposits. The bank has $85 million in reserves. If the reserve…

A: Checkable deposits = $770 million Reserves = $85 million  Reserve requirement = 10%    The bank's…

Q: Provide Answer with Calculation

A:

Q: 10. A bank note is discounted at 6% in order to take advantage of the cash discount On an invoice…

A: The credit terms are 2/15, n/45 that means 2% cash discount is allowed if the payment has been…

Q: A 102-day note for $85 bears simple interest at 4.5% and is sold 22 days before maturity to a bank…

A: Notes Receivables: It is possible to get a note receivable by writing a promise to receive a…

Q: Chang Co. issued a $40,073, 120-day, discounted note to Guarantee Bank. The discount rate is 8%.…

A: THE CASH PROCEED TO CHANG CO WILL BE CALCULATED BY DEDUCTING THE DISCOUNT AMOUNT FROM THE ISSUED…

Q: Bird's Eye Treehouses, Incorporated, a Kentucky company, has determined that a majority of its…

A: Net present value (NPV) is a financial metric used to assess the profitability of an investment. It…

Q: using 360 days in a year, how much cash did thunder company receive from the bank?

A: Given information is: On september 1 thunder company received an p80,000, 12%, 120-day note from a…

Q: 2. RWC Incorporated has a monthly ledger balance and deposit float of $200,000 and $25,000,…

A: Liabilities can be divided into two categories: current and long-term. Unlike current liabilities,…

Q: O 14.26% 10 20% Nocci O 1120%

A: In grating loans bank require some balance to be maintained in bank so actual loan in hand is much…

Q: Lever Age pays an 10% rate of interest on $10.20 million of outstanding debt with face value $10.2…

A: Rate of interest = 10%Debt = $ 10.20 millionEBIT  = $1.2 millionInterest = 10%* $ 10.20 million =…

Q: Assets- reserves: 75000 loans : 430000 liabilities : deposites : 500000 net worth : 5000 a)…

A:

Q: A bank bill with a face value of $200,000 was issued today and it matures in 90 days' time.  If…

A: A banknote is a revocable promissory note that can be used to pay another person a certain amount of…

Q: need answer

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Q: Imagine that the banking system's balance sheet can be represented by the following t-account:…

A: The problem case focuses on calculating the required reserve ratio,  money multiplier and the impact…

Q: A one-year treasury bill with a face value of $1 million has a nominal interest rate of 0031% if its…

A: GivenThe face value of treasury bill is $1,000,000.Term of bill is 1 year.Purchase price is $985000

Q: Simmons Corporation can borrow from its bank at 21 percent to take a cash discount. The terms of the…

A: Terms of cash discount = 2.5/18 net 55Discount rate = 2.5%Discount period (in days) = 18Final…

Q: Allen Enterprises receives a $4,500, 5%, six-month note receivable from Wells Manufacturing. Allen…

A: Cash realizable value can be calculated by deducting estimated bad debts from the total value of…

Q: A bank has earning assets of $100 million including $30 million of securities that pay an interest…

A: Net Interest Margin= (Interest Received - Interest Paid) / Average Invested Assets

Q: Mobile Co. issued a $47,563, 60-day, discounted note to Guarantee Bank. The discount rate is 6%. At…

A: Note: Discounted notes are issued at discount. The amount to be paid by the borrower at the time of…

Q: Ubu Bank has the following assets and liabilities :   Asset X has a maturity of 3 years and a…

A: The difference between the weighted average maturity of a bank's assets and the weighted average…

Q: urrent assets xed assets $30,000,000 70,000,000 Current liabilities Notes payable $100,000,000…

A: Capital structure consists of debt, equity and loans. For calculating cost of capital weights are…

Q: Riel Bank has a reserve ratio of 5%, $44 million issued in deposits, and $2,200,000 in actual…

A: The reserve ratio refers to the portion of the deposits that a bank has to hold in reserve to meet…

Q: Mobile Co. issued a $58,116, 60-day, discounted note to Guarantee Bank. The discount rate is 7%. At…

A: Note are form of loan taken or issued by the company. They can be discounted from the bank.

Q: Based on the optimal interest rate and the estimate for loan losses what will charge on its…

A: Commercial loans are credit facilities that are provided to businesses or financial institutions…

Q: on e of

A: If the Financial Institution invested 400mn$ in T bonds then the market value of firm will be…

Q: Mobile Co. issued a $43,384, 60-day, discounted note to Guarantee Bank. The discount rate is 11%. At…

A: Discounting of note means when note is transferred from company to bank and bank will deduct…

Q: Chang Co. issued a $59,741, 120-day, discounted note to Guarantee Bank. The discount rate is 8%.…

A: Discounting of note means receiving payments from a note from the bank after deduction of bank…