Starmix Trading reported earnings before interest and tax of RM1 million in 2020 It has a debt equity ratio requirement of 1 50 CIMB Banks current interest rate for commercial property loans is 5 per annum for 25 years Required Compute the maximum loan amount that CIMB Bank is willing to grant to Starmix Trading if they apply for a commercial property loan (5 marks)

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Starmix Trading reported earnings before interest and tax of RM1 million in 2020. It has a debt/equity ratio requirement of 1.50. CIMB Banks current interest

Starmix Trading reported earnings before interest and tax of RM1 million in 2020. It has a debt/equity ratio requirement of 1.50. CIMB Banks current interest rate for commercial property loans is 5% per annum for 25 years.

Required

Compute the maximum loan amount that CIMB Bank is willing to grant to Starmix Trading if they apply for a commercial property loan.

(5 marks)

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