Holland Construction Co. has an outstanding 180-day bank loan of $394,000 at an annual interest rate of 9.8%. The company is required to maintain a13% compensating balance in its checking account. What is the effective interest rate on the loan? Assume the company would not normally maintain thisaverage amount (Use 360 days in a year. Round your answer to 2 decimal places.)Multiple Choice14.26%1026%13.26%11:26%

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

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

Business

Finance

O 14.26% 10 20% Nocci O 1120%

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Ending inventory is calculated by multiplying the number of units on hand by the unit cost. O True O False LEX
Porter Corporation makes and sells a single product called a Yute. The company is in the process of preparing its Selling and Administrative Expense Budget for the last quarter of the year. The following budget data are available: Variable Cost Per Yute Sold Sales commissions Shipping Advertising Executive salaries $ 7,000 Depreciation on office equipment Other $ 20,000 All of these expenses (except depreciation) are paid in cash in the month they are incurred. If the total budgeted selling and administrative expense for October is $518,520, then how many Yutes does the company plan to sell in October? $5.90 $ 5.30 $ 8.90 Monthly Fixed Cost $ 0.60 $ 32,000 $ 178,000
fx 10% C E F GH Exercise 7-The following are excerpts from Your Co's financial statements. Your Co. 2019 1,080.00 $ 500.00 320.00 2018 2017 Net Sales COGS Other Expenses Cash A/R Inventory Prepaid Insurance Total Assets 960.00 $ 880.00 460.00 280.00 100.00 120.00 440.00 240.00 40.00 140.00 80.00 160.00 200.00 20.00 180.00 180.00 40.00 40.00 400.00 460.00 440.00 a) Perform horizontal analysis below, using 2017 as the base year (100%). 2019 2018 2017 Net Sales 122.7% 109.1% 100.0% 100.0% 100.0% COGS 454.5% 104.5% Other Expenses 133.3% 116.7% b) Perform vertical analysis below, using total assets as the base. 2019 2018 2017 Cash 17.4% 22.0% 10.0% A/R Inventory Prepaid Insurance Total Assets 35.0% 27.0% 35.0% 43.0% 41.0% 45.0% 96.0% 9.0% 10.0% хх X X X 1-4 DQ Ready
Find the future value of an ordinary annuity of $5,000 semiannually for seven years at 6% annual interest compounded semiannually. How much was invested? How much interest was earned? Use the table below. E Click the icon to view the Future Value of $1.00 Ordinary Annuity table. The future value is $ (Round to the nearest cent as needed.)
What should the coupon rate be, if a company wants to issue 10 year semi-annual bonds. The company is CCC rated? Using the file below to complete the bond table and answer the following questions. The excel version is available as an attachment to this assignment for additional analysis. These bonds pay a semi-annual coupon! Security Rating Treasury Treasury Treasury Treasury Treasury Corp 1 Corp 2 Corp 3 Corp 4 A BB AA CCC Years Maturity 1 3 5 10 20 5 10 20 3 Face Coupon Value Rate $1,000 0.00% $1,000 2.00% $1,000 4.40% $1,000 7.80% $1,000 7.00% $1,000 8.10% $1,000 5.00% $1,000 8.20% $1,000 4.50% Market Price $966.66 $939.06 $932.42 $1,007.12 $908.25 $1,000.00 $678.00 $972.22 $884.00
Use the table to calculate the amount of money that must be invested now at 16% annually, compounded quarterly, to obtain $1,400 in three years. Click the icon to view the $1 present value table. How much money must be invested at 16% annually, compounded quarterly, to obtain S1,400 in three years? 2$ (Round to the nearest cent as needed.)
5 6 7 8 9 -0 31 32 33 34 35 36 File Edit View Insert Format Data Tools Extensions Help 2 100% 35 + •| fx A = 2 B Sheet1 |: Defaul... $ % .0 .00 123 C D T E Increase in accounts receivable Decrease in inventory Decrease in prepaid insurance Decrease in account payable Increase in income taxes payable Increase in dividends payable - 10 + The income statement disclosed the following items for the current year: Depreciation expense $36,000 Gain on disposal of equipment 21,000 317,500 Net income $5,600 3,200 1,200 3,800 1,200 850 F JUN 2 BIA . P G 88 23 - =- - PA - Balances of the current assets and current liabilities accounts changed between December 31, last year, and December 31, this year, as follows: H Prepare the cash flows from operating activities section of the statement of cash flows using the indirect method. J C
The balance sheet of Cattleman's Steakhouse shows assets of $104,400 and liabilities of $30,000. The fair value of the assets is $112.500 and the fair value of its liabilities is $30,000. Longhorn paid Cattleman's $140,000 to acquire all of its assets and liabilities. Longhorn-should record goodwill on this purchase of: Muitiple Choice $27,500. $41.100. $98,600.
Mary Cooper, Sheldon's mother, who lives in east Texas, wants to help pay for her grandchild's education. How long will it take Mary to reach her goal of $220,000 if she invests $10,000 per year, earning 6 percent? Use Appendix A-3 or the Garman/Forgue companion website. Round your answer to the nearest half-year. years
Calculate (a) the amount financed, (b) the total finance charge, and (c) APR by table lookup. (Use Table 14.1.) Purchase price of a used car $ Down payment 4,095 $ 95 Number of monthly payments 60 Amount financed Total of monthly payments $ 5,844 Total finance charge APR
Latanya Brown established an ordinary annuity of $1,000 annually at 9% annual interest. What is the future value of the annuity after 16 years? How much of her own money will Latanya have invested during this time period? By how much will her investment have grown? E Click the icon to view the Future Value of $1.00 Ordinary Annuity table. The future value is $. (Round to the nearest cent as needed.)
ilrn/takeAssignment/takeAssignment Main.do?invoker=&takeAssignmentSession Locator=&inprogress=false < eBook Net income Falkland, Inc., is considering the purchase of a patent that has a cost of $49,000 and an estimated revenue producing life of 4 years. Falkland has a cost of capital of 10%. The patent is expected to generate the following amounts of annual income and cash flows: 5 5,504 X Feedback Year 1 $5,100 $6,500 Operating cash flows 17,300 18,400 (Click here to see present value and future value tables) A. What is the NPV of the investment? Round your present value factor to three decimal places and final answer to the nearest dollar. Check My Work Year 2 B. What happens if the required rate of return increases? If the required rate of return increases, the NPV will be lower 2 Year 3 GO A Year 4 $6,300 $3,000 18,500 14,850 mer ✓. Discount the operating cash flows in accordance to the years they occur using the appropriate time value of money table. The total amount of all cash…

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