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Author Question: Dazzly Diamond Corp. called for credit at the Home Alone Bank of Paris, TX. The terms included a ... (Read 426 times)

abern

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on: May 1, 2019
Dazzly Diamond Corp. called for credit at the Home Alone Bank of Paris, TX. The terms included a $35,000 maximum loan with interest of 1 percent over prime, and the agreement also requires a 15% compensating balance throughout the year. The prime rate is currently 12 percent.

a.If Dazzly Diamond Corp. maintains a balance in its account of $5,250 to $6,000, what is the
effective cost of credit through the line-of-credit agreement where the maximum amount of the loan is used?

b.Recompute the effective cost of credit to Dazzly Diamond if it will have to borrow the
compensating balance and the maximum amount possible under the agreement.
Foundations of Finance ¦ Keown, Petty, Martin ¦ 9th Edition
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Marked as best answer by abern on May 1, 2019

ndhahbi

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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.
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abern

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Reply #2 on: May 1, 2019
TY


ndhahbi

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Reply #3 on: May 1, 2019
You're welcome


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