Would 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?
Answer to relevant QuestionsSuppose that Dunn Industries has annual sales of $2,300,000, cost of goods sold of $1,650,000, average inventories of $1,116,000, and average accounts receivable of $750,000. Assuming that all of Dunn’s sales are on ...Suppose your firm is seeking a four-year, amortizing $200,000 loan with annual payments and your bank is offering you the choice between a $205,000 loan with a $5,000 compensating balance and a $200,000 loan without a ...JohnBoy Industries has a cash balance of $45,000, accounts payable of $125,000, inventory of $175,000, accounts receivable of $210,000, notes payable of $120,000, and accrued wages and taxes of $37,000. How much net working ...Consider a company that has sales in May, June, and July of $11 million, $10 million, and $12 million, respectively. The firm is paid by 25 percent of its customers in the month of the sale, 50 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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