Question: Would it be worth it to incur a compensating balance
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?
Answer to relevant QuestionsWould 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? Suppose your firm is seeking an eight-year, amortizing $800,000 loan with annual payments and your bank is offering you the choice between an $850,000 loan with a $50,000 compensating balance and an $800,000 loan without a ...HotFoot Shoes would like to maintain their cash account at a minimum level of $25,000, but expect the standard deviation in net daily cash flows to be $2,000, the effective annual rate on marketable securities to be 3.5 ...Consider a company that has sales in May, June, and July of $10 million, $12 million, and $9 million, respectively. The firm is paid by 35 percent of its customers in the month of the sale, 40 percent in the following ...Suppose a firm has had the historic sales figures shown as follows. What would be the forecast for next year’s sales using regression to estimate atrend?
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