{ "key_pair_value_system": true, "answer_rating_count": "", "question_feedback_html": { "html_star": "", "html_star_feedback": "" }, "answer_average_rating_value": "", "answer_date_js": "2024-06-06T18:05:10-04:00", "answer_date": "2024-06-06 18:05:10", "is_docs_available": "", "is_excel_available": "", "is_pdf_available": "", "count_file_available": 0, "main_page": "student_question_view", "question_id": "2381638", "url": "\/study-help\/questions\/hello-hi-may-you-please-help-with-that-question-14-2381638", "question_creation_date_js": "2024-06-06T18:05:10-04:00", "question_creation_date": "Jun 06, 2024 06:05 PM", "meta_title": "[Solved] Hello hi, may you please help with that q | SolutionInn", "meta_description": "Answer of - Hello hi, may you please help with that question 1.4 and explain thanks Question 1.4 (3 Marks) Benny Lid.'s management | SolutionInn", "meta_keywords": "hello,help,question,1.4,thanks,3,marks,benny,lid,s,management,contemplating", "question_title_h1": "Hello hi, may you please help with that question 1.4 and explain thanks Question 1.4 (3 Marks) Benny Lid.'s management is contemplating its short term", "question_title": "Hello hi, may you please help with that question 1.4 and explain", "question_title_for_js_snippet": "Hello hi, may you please help with that question 1 4 and explain thanks Question 1 4 (3 Marks) Benny Lid 's management is contemplating its short term financing strategy Currently, it is expected that the yield curve will invert and the management then expects it to remain the status quo for the next three years Would obtaining a three year loan to cover short term expenses be less costly, or more costly, than obtaining a series of short term loans if we suppose that lenders follow the trend observed in the yield curve closely a Impossible to know b Long term will be cheaper C Short term will be cheaper d Both will be the same P, 31 1 MJ Use the following information to answer questions 1 7 and 1 8 Burgs Ltd is conducting its cash planning for the coming month of June The company had a cash balance of R50 000 at the end of May The company collects on 60 of its sales (which are all conducted on credit) one month after the sales were made and the remainder two months after the sales was made The company had sales of R100 000 in April and R600 000 in May Total cash expenses expected in June amounts to R450 000 The company has a short term financing agreement with a bank that allows it to borrow at 12 per annum with interest payments due at the end of every month At the end of May, the balance owing on the facility was RO Question 1 7 (2 Marks) How much financing would Burgs Lid require for the month of June RO b R10 000 C R50 000 d R400 000 Question 1 8 (1 Mark) If Burgs Lid had required borrowings of R50 000 on its short term facility for one month, ho much interest would the company have to pay a RO b R500 C R6 000 d R50 000", "question_description": "\"image

Hello hi, may you please help with that question 1.4 and explain thanks<\/p>

\"image<\/div><\/div><\/div> Question 1.4 (3 Marks) Benny Lid.'s management is contemplating its short term financing strategy. Currently, it is expected that the yield curve will invert and the management then expects it to remain the status quo for the next three years. Would obtaining a three year loan to cover short term expenses be less costly, or more costly, than obtaining a series of short term loans if we suppose that lenders follow the trend observed in the yield curve closely? a. Impossible to know b. Long term will be cheaper C. Short term will be cheaper d. Both will be the same P, 31 1 MJ Use the following information to answer questions 1.7 and 1.8: Burgs Ltd. is conducting its cash planning for the coming month of June. The company had a cash balance of R50 000 at the end of May. The company collects on 60% of its sales (which are all conducted on credit) one month after the sales were made and the remainder two months after the sales was made. The company had sales of R100 000 in April and R600 000 in May. Total cash expenses expected in June amounts to R450 000. The company has a short term financing agreement with a bank that allows it to borrow at 12% per annum with interest payments due at the end of every month. At the end of May, the balance owing on the facility was RO. Question 1.7 (2 Marks) How much financing would Burgs Lid. require for the month of June? RO b. R10 000 C. R50 000 d. R400 000 Question 1.8 (1 Mark) If Burgs Lid. had required borrowings of R50 000 on its short-term facility for one month, ho much interest would the company have to pay? a. RO b. R500 C. R6 000 d. R50 000", "transcribed_text": "", "related_book": { "title": "Ethical Obligations And Decision Making In Accounting Text And Cases", "isbn": "1264135947, 9781264135943", "edition": "6th Edition", "authors": "Steven Mintz", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/2022\/04\/62500bf9812ef_11362500bf943ad3.jpg", "uri": "\/textbooks\/ethical-obligations-and-decision-making-in-accounting-text-and-cases-6th-edition-9781264135943", "see_more_uri": "" }, "free_related_book": { "isbn": "B0CM5BK1QX", "uri": "\/textbooks\/empower-your-life-finding-greater-motivation-within-1st-edition-979-8865765189-362289", "name": "Empower Your Life Finding Greater Motivation Within", "edition": "1st Edition" }, "question_posted": "2024-06-06 18:05:10", "see_more_questions_link": "\/study-help\/questions\/business-marketing-2022-June-08", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/carron-communications-inc-is-preparing-its-cash-budget-for-2015", "description": "Carron Communications, Inc., is preparing its cash budget for 2015. 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