Questions

$10.00

Chapter 16: Financial Management

Category : General-Questions

Due date : 03/05/2012*Posted on 03/02/2012 at 9:47:54 AM*

Due date : 03/05/2012

Posted By : Mahi

Rating: No Rating

Question Asked :322

Posted Tutorials:9

Earned: $268.40

Message Me

Mahi's Pages: (0)

Question Asked :322

Posted Tutorials:9

Earned: $268.40

Message Me

Mahi's Pages: (0)

Q:

I need help with Strayer Finance 100, Week 9. Can you help me with the following questions for a good, affordable price?

Chapter 16: Financial Management

**Problems:**

1. A supplier is offering your firm a cash discount of 2 percent if purchases are paid for within ten days; otherwise the bill is due at the end of sixty days. Would you recommend borrowing form a bank at an 18 percent annual interest rate to take advantage of the cash discount offer? Explain your answer.

2. Assume that you have been offered cash discounts on merchandise that can be purchased from either of two suppliers. Supplier A offers trade credit terms of 3/20, net 70, while supplier B offers 4/15, net 80. What is the approximate effective cost of missing the cash discounts from each supplier? If you could not take advantage of either cash discount offer, which supplier would you select?

**7. Bank A offers loans with a 10 percent stated annual rate and a 10 percent compensating balance. You wish to obtain $250,000 in a six month loan. **

a. How much must you borrow to obtain $250,000 in usable funds? Assume you currently do not have any funds on deposit at the bank. What is the effective annual rate on a six month loan?

b. How much must you borrow to obtain $250,000 in usable funds if you currently have $10,000 on deposit at the bank? What is the effective annual rate on a six-month loan?

c. How much must you borrow to obtain $250,000 in usable funds if you currently have $30,000 on deposit at the bank?

d. What is the effective annual rate on a six-month loan?

Your Complaint