Multiple Choice
Smithfield's has a line of credit with a local bank of $75,000.The loan agreement calls for interest of 6 percent with a compensating balance requirement of 3 percent that is based on the total amount borrowed.What is the effective interest rate if the firm needs $58,000 for 1 year to finance a fixed asset purchase?
A) 8) 55%
B) 6) 34%
C) 7) 13%
D) 7) 38%
E) 6) 19%
Correct Answer:
Verified
Correct Answer:
Verified
Q69: Which one of these managers is most
Q70: Dixie's has a net cash inflow for
Q71: Which financial policy,or policies,uses both marketable securities
Q72: Flexible short-term financial policies tend to<br>A)support few
Q73: Pat's Place has sales of $613,700 and
Q74: The most common means of financing a
Q75: A restrictive short-term financial policy is most
Q76: For a levered firm,an additional 3-day delay
Q78: D&M sells its inventory in 67 days
Q79: A short-term loan where the borrower pledges