Only reason I'm posting 3 is because they're already listed on chegg but were all wrong answers. Minus the third one which shows which were correct. Please do all three. Also I hope you know how much us students appreciate you!!
Your firm has an average collection period of 55 days. Current practice is to factor all receivables immediately at a 2 percent discount. What is the effective cost of borrowing in this case? Assume that default is extremely unlikely. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Effective annual rate % In exchange for a $400 million fixed commitment line of credit, your firm has agreed to do the following: 1. Pay 1.98 percent per quarter on any funds actually borrowed. 2. Maintain a 3 percent compensating balance on any funds actually borrowed. 3. Pay an up-front commitment fee of.22 percent of the amount of the line. Based on this information, answer the following: a. Ignoring the commitment fee, what is the effective annual interest rate on this line of credit? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. Suppose your firm immediately uses $228 million of the line and pays it off in one year. What is the effective annual interest rate on this $228 million loan? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) a. Effective annual rate % b. Effective annual rate % The MacDonald Corporation's purchases from suppliers in a quarter are equal to 75 percent of the next quarter's forecast sales. The payables period is 60 days. Wages, taxes, and other expenses are 30 percent of sales, and interest and dividends are $120 per quarter. No capital expenditures are planned. Projected quarterly sales are: Q1 $1,350 Q2 $1,500 Q3 $1,590 Q4 $1,800 Sales Sales for the first quarter of the following year are projected at $1,470. Calculate the company's cash outlays by completing the following: (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) X Answer is not complete. Q1 Q2 Q3 Q4 1,125.00 X $ 1,192.50 X $ 1,350.00 X 405.00 450.00 477.00 540.00 Payment of accounts Wages, taxes, other expenses Long-term financing expenses (interest and dividends) Total 120.00 120.00 120.00 120.00 $ 525.00 X $ 1,695.00 X $ 1,789.50 X $ 2,010.00 X
