Question: Tinker Inc finances its seasonal working capital need with short term
Tinker, Inc. finances its seasonal working capital need with short-term bank loans. Management plans to borrow $65,000 for a year. The bank has offered the company a 3.5 percent discounted loan with a 1.5 percent origination fee. What are the interest payment and the origination fee required by the loan? What is the rate of interest charged by the bank?
Answer to relevant QuestionsRepeat Problem 1 to determine the percentage return on your investment but in this case suppose the price of the stock falls to $40 per share. What generalization can be inferred from your answers to Problems 1 and ...You can borrow $5,000 for 60 days with an interest payment of $125. What is the simple rate of interest? What is the compound rate of interest? Dash Construction needs to borrow $200,000 for 45 days in order to take advantage of the cash discount of 3/10, n55 offered by a supplier. Dash Construction can borrow the funds from a bank with an interest payment of ...A five-year $100,000 term loan has an interest rate of 7 percent on the declining balance. What are the equal annual payments required to pay interest and principal on the loan? Construct a table showing the declining ...The price of a stock is $39, and a six-month call with a strike price of $35 sells for $8. a. What is the option's intrinsic value? b. What is the option's time premium? c. If the price of the stock rises, what happens to ...
Post your question