FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Pepper Golf Course Management Inc. has an outstanding 180-day bank loan of $400,000 at an annual interest rate of 9.5%. Dottie, who is the CFO

image text in transcribed
Pepper Golf Course Management Inc. has an outstanding 180-day bank loan of $400,000 at an annual interest rate of 9.5%. Dottie, who is the CFO of PGCMI would like to know whatthe effectiveinterest rateof this loan? Dottie is advised that the PGCMI is required to maintain a 15% compensating balance in its checking account. Select one: A, 11.18% B. 19.00% C. 22.35% D. 8.08%

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Finance for Non Financial Managers

Finance for Non Financial Managers

Authors: Pierre Bergeron

7th edition

176530835, 978-0176530839

More Books

Students also viewed these Finance questions

Question

★★★★★
In year 1, Gardner used funds earmarked for use in Gardner's business to make a personal loan to Carson. In year 3, Carson declared bankruptcy, having paid off only $500 of the loan at that time. In...

Answered: 1 week ago

Question

★★★★★
P(A)=0.7, P(B)=0.56 and P(B|A)=0.75. Find the probability of not a and not b. P(not a and not b). The answer of the textbook shows that (1-(0.7+0.56-0.7*0.75)=0.265. I can't understand it. Plz,...

Answered: 1 week ago

Question

★★★★★
7. Do you believe one can be assertive without being aggressive at the workplace? Give reasons for your answers.

Answered: 1 week ago

Question

★★★★★
Melissa's Photo Studio offers both individual and group portrait options. The process flow diagram in Figure shows that all customers must first register and then pay at one of two cashiers. Then...

Answered: 1 week ago

Question

★★★★★
All of the following are Reserve Bank monetary policy objectives EXCEPT: a. to manage inflation level between 2 per cent and 3 per cent. b. maintenance of full employment in Australia. c. the...

Answered: 1 week ago

Question

★★★★★
Sammy Company is considering eliminating its Commercial division. The company allocates fixed costs based on division sales. If the Commercial division is dropped, all of its variable costs are...

Answered: 1 week ago

Question

★★★★★
Compute the Gross Profit Given; Show your answer as a number only, no Dollar signs, decimals, or commas. Sales Revenues = $180,000 Office Expense = $33,000 Rent Expenses $10,000 Cost of Good...

Answered: 1 week ago

Question

★★★★★
angley has a debt ratio of 0.3 and its competitor, Appleton, has a debt ratio equal to 0.7. Determine the statement below that is correct . Multiple Choice Higher financial leverage involves lower...

Answered: 1 week ago

Question

★★★★★
A potential buyer signs a contract with a seller but then decides not to buy. The seller may sue the potential buyer for specific performance or damages unless the contract was A. a bilateral...

Answered: 1 week ago

Question

★★★★★
Kristin us a distributor of brass picture frames. For 2020, the company plans to purchase for P30 each and sell them for P45 each. The company's fixed costs are expected to be P240,000. Its only...

Answered: 1 week ago

Question

★★★★★
Let change in revenve according to time is function of f(t)=200*e^(0,02t) Find total revenue during 4 years. 2 answers

Answered: 1 week ago

Previous Question Next Question