analyze this information from a quantitative and qualitative aspect 1. Line of credit The company has a
Question:
analyze this information from a quantitative and qualitative aspect
1. Line of credit The company has a line of credit from the bank that has a general security over all of the assets of the company along with the shareholders' personal guarantees. The total maximum amount available on this line of credit is $6 million. The line of credit is callable on demand at the bank's option. The loan bears interest at prime plus 3%. The prime bank lending rate is currently 3%. 2. Five-year term loan The bank is also prepared to offer a long-term loan secured by the company's property, plant, and equipment for up to $4 million. The term loan would be for five years and bear interest at 6%. Interest only is payable monthly, with the principal due at maturity in five years.
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill