Business & Finance Assignment | Custom Assignment Help

Neveready Flashlights Inc. needs $324,000 to take a cash low value of two/15, web 73. A banker will mortgage the money for 58 days at an curiosity worth of $11,100.

a. What is the environment friendly charge on the monetary establishment mortgage? (Use a 360-day yr. Do not spherical intermediate calculations. Enter your reply as a p.c rounded to 2 decimal areas.)

b. How lots would not it worth (in share phrases) if the company did not take the cash low value nonetheless paid the bill in 73 days instead of 15 days? (Use a 360-day yr. Do not spherical intermediate calculations. Enter your reply as a p.c rounded to 2 decimal areas.)

c. Should the company borrow the money to take the low value?NoYes  Get  

 

d. If the banker requires a 20 p.c compensating steadiness, how lots ought to the company borrow to complete up with the $324,000?

e-1. What might be the environment friendly price of curiosity partially d if the curiosity value for 58 days have been $16,700? (Use a 360-day yr. Do not spherical intermediate calculations. Enter your reply as a p.c rounded to 2 decimal areas.)

e-2. Should the company borrow with the 20 p.c compensating steadiness requirement? (The company has no funds to rely in opposition to the compensating steadiness requirement.)Get