This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Crenshaw Inc. has a $400,000 line of credit with a local bank. The bank requires a compensating ... (Read 255 times)

gbarreiro

  • Hero Member
  • *****
  • Posts: 566
on: May 1, 2019
Crenshaw Inc. has a $400,000 line of credit with a local bank. The bank requires a compensating balance of 10% of the loan and extends credit to Crenshaw at 1% over the current prime rate. Crenshaw needs the use of $200,000 for the three-month period. They currently have no deposits with the lending bank.

a.What will the effective annual cost of this credit be? (Assume a 360-day year and a 9% prime
rate.)

b.Using the above information, what would be the effective interest rate if the firm discounted
the interest on the loan?
Foundations of Finance ¦ Keown, Petty, Martin ¦ 9th Edition
Buy Test-Bank


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by gbarreiro on May 1, 2019

flexer1n1

  • Sr. Member
  • ****
  • Posts: 373
Reply #1 on: May 1, 2019
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
Answer Preview
Only 35% of students answer this correctly


gbarreiro

  • Member
  • Posts: 566
Reply 2 on: May 1, 2019
Excellent

vickyvicksss

  • Member
  • Posts: 351
Reply 3 on: Yesterday
Gracias!

« previous next »
 

Did you know?

About 100 new prescription or over-the-counter drugs come into the U.S. market every year.

Did you know?

Despite claims by manufacturers, the supplement known as Ginkgo biloba was shown in a study of more than 3,000 participants to be ineffective in reducing development of dementia and Alzheimer’s disease in older people.

Did you know?

Normal urine is sterile. It contains fluids, salts, and waste products. It is free of bacteria, viruses, and fungi.

Did you know?

Chronic necrotizing aspergillosis has a slowly progressive process that, unlike invasive aspergillosis, does not spread to other organ systems or the blood vessels. It most often affects middle-aged and elderly individuals, spreading to surrounding tissue in the lungs. The disease often does not respond to conventionally successful treatments, and requires individualized therapies in order to keep it from becoming life-threatening.

Did you know?

Your chance of developing a kidney stone is 1 in 10. In recent years, approximately 3.7 million people in the United States were diagnosed with a kidney disease.

Mechanoreceptors in the lateral line system that detect changes in water movement. Mechanoreceptors in the lateral line system that detect changes in water movement.
Concentration affects where the precipitin line forms. When 1 reactant is held at a constant ... Concentration affects where the precipitin line forms. When 1 reactant is held at a constant ...
Calculation of the Amount of the Local Anesthetic and Vasoconstrictor Calculation of the Amount of the Local Anesthetic and Vasoconstrictor
First and Second Line Drugs for the Treatment of TB First and Second Line Drugs for the Treatment of TB
Melanoma is a local contraindication for massage. Melanoma is a local contraindication for massage.
Sketch the graph of the following functions using local maximum/minimums, interc Sketch the graph of the following functions using local maximum/minimums, interc
Video: Osteoporosis

For a complete list of videos, visit our video library