Would it be worth it to incur a compensating balance of $10,000 in order to get a
Question:
Would it be worth it to incur a compensating balance of $10,000 in order to get a 1-percent-lower interest rate on a one-year, pure discount loan of $225,000?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 50% (10 reviews)
It depends upon whether 225000 1 i or 235000 1 i 001 is larger The compensating balan...View the full answer
Answered By
Hassan Ali
I am an electrical engineer with Master in Management (Engineering). I have been teaching for more than 10years and still helping a a lot of students online and in person. In addition to that, I not only have theoretical experience but also have practical experience by working on different managerial positions in different companies. Now I am running my own company successfully which I launched in 2019. I can provide complete guidance in the following fields. System engineering management, research and lab reports, power transmission, utilisation and distribution, generators and motors, organizational behaviour, essay writing, general management, digital system design, control system, business and leadership.
5.00+
1+ Reviews
10+ Question Solved
Related Book For
Finance Applications and Theory
ISBN: 978-0077861681
3rd edition
Authors: Marcia Cornett, Troy Adair
Question Posted:
Students also viewed these Finance questions
-
Would it be worth it to incur a compensating balance of $7,500 in order to get a 0.65-percent-lower interest rate on a two-year, pure discount loan of $150,000?
-
1. Economically speaking, how much money would it be worth investing in workplace safety to prevent a single workplace injury with a direct cost of $1,000? 2. If a company has a lower profit margin,...
-
1. Andersons bank requires a compensating balance of $3 million. How much additional funds can be freed up for investment in fixed assets if the firm reduces its cash balance to the minimum required...
-
Problem 1: The three velocities shown would indicate that the body is not rigid. Given that the body is known to be rigid, one of the three velocities is clearly incorrect. Draw all lines and take...
-
A headline in The New York Times on March 4, 1990, read: "Wine equation puts some noses out of joint." The article explained that Professor Orley Ashenfelter, a Princeton University economist, had...
-
In quantum mechanics, what is the difference between positive (constructive) and negative (destructive) interference?
-
Should accountants establish themselves as a community of experts on ecological accounting and reporting issues?
-
Sunshine Baking Company is a diversified food products company with three operating divisions organized as investment centers. Condensed data taken from the records of the three divisions for the...
-
Amazon is creating a loyalty and rewards program, which vendor would be able to provide the best information system and why? how is this vendor different from its competitors? Choose between...
-
The accompanying data for the S&P 500 provides open, high, low, and close values for the S&P index over a period of time. Complete parts a through c below. Click the icon to view the S&P Index. a....
-
If a firm has a cash cycle of 54 days and an operating cycle of 77 days, what is its payables turnover?
-
Suppose that Dunn Industries has annual sales of $2,300,000, cost of goods sold of $1,650,000, average inventories of $1,116,000, and average accounts receivable of $750,000. Assuming that all of...
-
Do you think that non-adversarial methods of dispute settlement are better for friendly relations between states for environmental law?
-
On January 2, 2024, David Corporation purchased a patent for $510,000. The remaining legal life is 10 years, but the company estimated that the patent will be useful only for six years. In January...
-
A job order cost sheet for Sunland Company is shown below. Job No. 92 For 2,000 Units Date Direct Materials Direct Manufacturing Labor Overhead Beg. bal. Jan. 1 4,000 4,800 3,360 8 12 25 27 4,800...
-
Use the provided Wall Street Journal handout entitled, (Government Bonds Jan 11 2023), to complete the following table. You do not need to show your work. Put answers in this column Using the latest...
-
d Harris Company manufactures and sells a single product. A partially completed schedule of the company's total costs and c unit over the relevant range of 30,000 to 50,000 units is given below:...
-
Wardell Company purchased a minicomputer on January 1, 2022, at a cost of $57,000. The computer was depreciated using the straight-line method over an estimated five-year life with an estimated...
-
Standard practice in chemical laboratories is to distill highboiling-point substances under reduced pressure. Trichloroacetic acid has a standard enthalpy of vaporization of 57.8 kJ mol 1 and a...
-
In Problems, solve each system of equations. x + 2y + 3z = 5 y + 11z = 21 5y + 9z = 13
-
Make a list of several positive customer service experiences youve had. Did interpersonal communication impact your service experience? If so, what makes the difference in these experiences compared...
-
Fill in the missing information assuming a correlation of.15. Portfolio Weights Bonds Stocks Bd Expected Return tndard Deviation 1.00 .80 .60 40 .20 12% 21% 6% 9%
-
Consider two stocks, Stock D with an expected return of 13 percent and a standard deviation of 39 percent and Stock I, an international company, with an expected return of 16 percent and a standard...
-
What are the expected return and standard deviation of the minimum variance portfolio in the previous problem?
-
Wal-Mart's frustrations in India Seven years ago Wal-Mart set out to be India's top retailer by 2015. The business plan was called Project Jai Ho, a Hindi phrase meaning "let there be victory". But...
-
a) identify potential mitigating strategies the organization could employ to reduce the impact of their highest ranked social risks. (2 marks) Risk The effect on the community and environment due to...
-
What is a good guideline for the amount of information to include in a message?
Study smarter with the SolutionInn App