Question: i need the second part pleaseee In exchange for a dollar 400 million fixed commitment line of credit, your firm has agreed to do the

i need the second part pleaseee

In exchange for a dollar 400 million fixed commitment line of credit, your firm has agreed to do the following: Pay 1.83 percent per quarter on any funds actually borrowed. Maintain a 3 percent compensating balance on any funds actually borrowed. Pay an up-front commitment fee of 0.28 percent of the amount of the line. Required: Based on this information, answer the following: Ignoring the commitment fee, what is the effective annual interest rate on this line of credit? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).) Effective annual rate 7.76 % Suppose your firm immediately uses S213 million of the line and pays it off in one year. What is the effective annual interest rate on this dollar 213 million loan? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).) Effective annual rate

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

1. In exchange for a $400 million fixed commitment line of credit, your firm has agreed to do the following: 1. Pay 1.92 percent per quarter on any funds actually borrowed. 2. Maintain a 1 percent...

iz 13 Saved 43 Book in exchange for a $400 million fixed commitment line of credit, your firm has agreed to do the following 1. Pay 1.9 percent per quarter on any funds actually borrowed. 2. Maintain...

In exchange for a $400 million fixed commitment line of credit, your firm has agreed to do the following: 1. Pay 1.97 percent per quarter on any funds actually borrowed. 2. Maintain a 1 percent...

In exchange for a $400 million fixed commitment line of credit, your firm has agreed to do the following: 1. Pay 1.82 percent per quarter on any funds actually borrowed. 2. Maintain a 1 percent...

In exchange for a $400 million fixed commitment line of credit, your firm has agreed to do the following: 1. Pay 1.97 percent per quarter on any funds actually borrowed. 2. Maintain a 1 percent...

Chapter sixteen corporate finance Peeples, Inc., has a book value of equity of $14,325. Long-term debt is $8,200. Net working capital, other than cash, is $2,340. Fixed assets are $19,260. a. How...

In exchange for a $400 million fixed commitment line of credit, your firm has agreed to do the following: Pay 1.83 percent per quarter on any funds actually borrowed. Maintain a 3 percent...

In exchange for a $400 million fixed commitment line of credit, your firm has agreed to do the following: 1. Pay 1.83 percent per quarter on any funds actually borrowed. 2. Maintain a 3 percent...

i got most of the answers but i really don't understand how to get the two that are blank A bank offers your firm a revolving credit arrangement for up to $57 million at an interest rate of 1.52...

A spherical shell has an outside radius of 2.60 cm and an inside radius of a. The shell wall has uniform thick- ness and is made of a material with density 4.70 g/cm. The space inside the shell is...

Assume the magnitude of the electric field on each face of the cube of edge L = 1.0 m in the figure below is uniform and the directions of the fields on each face are as indicated. (Take E 1 = 33.6...

The primary difference between positive and negative coefirmations used in the aodit of accounts receivable is the mode of response. the amount of information included. the control of the...

9. (15 points) A company is considering a new project that requires an investment of \$5 million. The project is expected to generate cash flows of $2 million in year 1,$3 million in year 2, and $4...

identify potential ethical and environmental issues about pay and reward.

explain the importance of developing a pay and reward strategy for an organisation

2. Interview managers or employees from three organisations of your choice from different industrial sectors to establish what effect, if any, the introduction of the living wage has or would have on...