During the next four months, a company is considering approaching banks to finance its increased level of working capital. The company expects to increase its working capital needs by $30,000 and hopes to obtain 55% financing from the bank. The bank manager said that it would cost them $700 in finance costs for the four-month period. Based on this information, calculate the company’s APR for the four-month loan.
Answer to relevant QuestionsIn April 2013, Miriam and Ben Friedman were thinking about starting their own business, Grip Case Inc. Their objective was to produce and market inexpensive attaché cases. It was not their intention to compete directly ...What is the difference between weighted average cost of financing and weighted average cost of capital?How can leverage analysis be used to determine whether a plant should be modified or not? The CEO of an electronics business was contemplating going public. Assume that the prospectus shows an expansion plan that would cost $20 million, and the CEO wants to raise funds from the following sources:a) $8 million ...Explain the Rule of 72.
Post your question