2. Mala-Inse Company needs P5,000,000 short-term credit for 90 days. To produce the amount, the company intends to sell commercial paper with a discount rate of 15%, issuance cost of P75,000 and other flotation cost of P15,000. Determine the simple cost of financing? (round to 4 decimal places)
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- choose the letter of the correct answer Log Company’s credit sales are P300,000, and the collection period is 90 days. Cost is 70 percent of selling price. Determine Log's average investment in accounts receivable. a. P32,500.00b. P42,500.00c. P52,500.00d. P62,500.00e. P72,500.001. Þalagang Pilipina Company needs P5,000,000 short-term credit for 90 days. To produce the amount, the company intends to sell commercial paper with a discount rate of 15%, issuance cost of P75,000 and other flotation cost of P15,000. How large should the commercial paper issue be to achieve the needed amount? (nearest peso amount)A. DEF has total forecasted gross purchases of P4,500,000 relating to a major supplier for the coming year. The supplier is offering a credit term of 3/15, n/45. How much is the simple annual effective cost of paying on the 45th day? B. ABC can take a 45-day loan with a 15% interest deducted in advance, to be reapplied each time. How much is the simple annual cost of the loan?
- A. DEF has total forecasted gross purchases of P4,500,000 relating to a major supplier for the coming year. The supplier is offering a credit term of 3/15, n/45. How much is the simple annual effective cost of paying on the 45th day? B. ABC can take a 45-day loan with a 15% interest deducted in advance, to be reapplied each time. How much is the simple annual cost of the loan? C. ABC’s bank offered a loan with conditions of a P5,000,000 face amount, 6-month term, 4% interest deducted in advance and bank charge of P30,000. How much is the compounded annual effective cost of the bank loan?A company can issue a 90-day $5 million commercial paper at a rate of 6.55%. It can reduce the rate to 6.35% if it is backed by a standby letter of credit (SBLC). A bank is willing to issue the SBLC for a fee of 10 basis points. a) Should the company obtain an SBLC? Explain why or why not? b) Explain the formula - Expected loss = EAD × PD × LGDA loan from Bank of Montreal for $195,000 is repaid by making payments at the beginning of every six months for 9 years. If interest is 7.84% compounded semiannually: What is the amount of each payment? Round all answers to two decimal places if necessary. Choose BGN or END? î P/Y = PV = $ C/Y = PMT= $ N= Cost of Financing = $ FV = $ What is the cost of financing? Round the answer to two decimal places. I/Y= (enter a positive value) %
- can it be solve please Useful Houseware Co. Ltd has received a $35,300 loan from Bank Corporation Limited. The annual payments are $4,589.81. If the company is paying 8.5% interest per year, how many loan payments must the company make? (Note on formatting: Round off to the nearest whole number.)An Scottish company is offering the terms of 2/10 net 30. For a purchase of $3,000, answer the following questions: a) When is the payment due? b) How much will the company pay if it pays in 30 days? c) How much will the company pay if it pays in 10 days?3.-DO IT IN EXCEL, AND SHOW THE FORMULASThe main supplier of Productos Adiós, S.A., offers you the option of a Cash Discount of 1.5% if you pay before two weeks. You should seriously evaluate this alternative to try to be more efficient in your accounts payable. You can use the direct lending facility that charges interest in advance, at a rate of 14.5% and an origination fee of 1%.This supplier's billing is $450,000 for a one-month term.What is the difference between the supplier's discount and the sum of commission and interest on the financing? A) $476.39 B) None of the above C) $660.87 D) $2,904.26 (Choose one option)
- 1. AXN Sdn Bhd needs to raise RM1, 000,000 in short-term loan for five months. loan from OCBC bank at discounted interest rate of 12% per annum and a 20% compensating balance. The present account balance in the company is RM 100,000. Compute the effective cost of financing.3.-DO IT IN EXCEL, AND SHOW THE FORMULASThe main supplier of Productos Adiós, S.A., offers you the option of a Cash Discount of 1.5% if you pay before two weeks. You should seriously evaluate this alternative to try to be more efficient in your accounts payable. You can use the direct lending facility that charges interest in advance, at a rate of 14.5% and an origination fee of 1%.This supplier's billing is $450,000 for a one-month term.What is the difference between the supplier's discount and the sum of commission and interest on the financing? A) $476.39 B) None of the above C) $660.87 D) $2,904.26Crane Excavating Inc. is purchasing a bulldozer. The equipment has a price of $103,000. The manufacturer has offered a payment plan that would allow Crane to make 10 equal annual payments of $18,229.37, with the first payment due one year after the purchase. (a) Your answer is correct. How much total interest will Crane pay on this payment plan? (Round answer to 0 decimal places, e.g. 458,581.) Total interest eTextbook and Media 79,293.7 Attempts: 1 of 15 used