On March 4 of 1999, XYZ Corporation takes out a $1 million loan. The company pays the interest semiannually. The six-month interest rate is six-month LIBOR 80 basis points, with a cap at 9.25%. Assume that LIBOR is at 8.5% on March 4, 1999, and 7.75% on September 4, 1999. What is the second interest payments on the loan

Answers

Answer 1

Answer:

Answer: $85,500

Explanation:

From the question, we are told XYZ Corporation takes out a $1 million loan and the interest on the loan is paid semiannually.

We are also told that the six-month interest rate is six-month LIBOR 80 basis points, with a cap at 9.25%. Assume that LIBOR is at 8.5% on March 4, 1999, and 7.75% on September 4, 1999.

The second interest payments on the loan will be:

The interest rate will be:

Interest rate = LIBOR + 80bps

= 7.75 + 0.8

= 8.55%

Interest paid in the second period

= $1,000,000 × 8.55%

= $1,000,000 × 0.0855

= $85,500

Note that there is no need for using the cap since the interest didn't exceed 9.25%

Related Questions

Sarah and Wei have an opportunity to buy a large parcel of land on the Willamette River, just two miles south of Salem. They want to build an amusement park on the land. Sarah approaches you and says, "Hey, I know you took that BA 333 class, so maybe you can help me figure out what to do. Wei and I need a lot of money to start up our amusement park and buy the land we want, and we're a little nervous about getting sued if someone gets thrown out of our roller coaster. What kind of business do you think we should we set up? We were thinking maybe we could just be partners. We'd prefer not to have anything formal written down--we think that might be bad for our friendship. What's your advice?"Draft an answer to Sarah and Wei and include it in your document. Your answer should include: 1) your recommendation for the best entity choice; 2) a complete explanation of why this is the best option; 3) a secondary recommendation, in case Sarah and Wei don't like your first option; 4) an explanation as to why this is your second choice (i.e., compare to your first choice and explain why this is not as good, but still an acceptable option).
The difference between the small business owner and the entrepreneur is that the entrepreneur:_________ a) assumes the risk of the business manages b) the business is responsible for the profits of the business c) is accurately described by all of the above files taxes for the business
Statz Company had sales of $1,900,000 and related cost of goods sold of $1,100,000 for its first year of operations ending December 31, 20Y1. Statz provides customers a refund for any returned or damaged merchandise. At the end of 20Y1, Statz Company estimates that customers will request refunds for 1.7% of sales and estimates that merchandise costing $12,000 will be returned. Assume that on February 3, 20Y2, Buck Co. returned merchandise with an invoice amount of $5,300 for a cash refund. The returned merchandise originally cost Statz Company $3,200.Required:a. Journalize the adjusting entries on December 31 to record the expected customer returns. b. Journalize the entries to record the returned merchandise and cash refund to Buck Co. on February 3.
Assume that a hypothetical economy with an MPC of 0.8 is experiencing severe recession.Instructions: In part a, round your answers to 2 decimal places. Enter your answers as positive numbers. In part b, enter your answers as whole numbers. a. By how much would government spending have to rise to shift the aggregate demand curve rightward by $30 billion? How large a tax cut would be needed to achieve the same increase in aggregate demand? b. Determine one possible combination of government spending increases and tax increases that would accomplish the same goal without changing the amount of outstanding debt. Increase spending Increase taxes by
Ramon sells two enchiladas and three tacos for $\$$2.50 and he sells three enchiladas and two tacos for $\$$2.70. Assuming a fixed price per item, what is the cost, in dollars, of three enchiladas and four tacos

Suppose the Treasury sells $10 billion worth of securities to the Social Security Administration and $15 billion to the general public. This sale added ________ billion to gross public debt and ________ billion to the debt held by the public.

Answers

Answer:

$25 billion and $15 billion

Explanation:

Given:

Social Security Administration = $10 billion

General public held = $15 billion

Computation of Total gross public debt :

Total gross public debt = Social Security Administration + General public held

Total gross public debt = $10 billion + $15 billion

Total gross public debt = $25 billion

Total gross debt held by public = $15 billion

Andrews Company manufactures a line of office chairs. Each chair takes $14 of direct materials and uses 1.9 direct labor hours at $16 per direct labor hour. The variable overhead rate is $1.20 per direct labor hour, and the fixed overhead rate is $1.60 per direct labor hour. Andrews expects to have 675 chairs in ending inventory. There is no beginning inventory of office chairs. unit product cost. budgeted ending inventory

Answers

Answer:

Chair unit cost: $ 49.72

Total cost for 675 chairs: $ 33,561

Explanation:

Direct Materials: $ 14.00

Direct Labor: 1.9 hours x $16 labor cost: $ 30.40

Overhead:

1.9 labor hours x ($ 1.6 variable rate + $ 1.20 fixed rate) = $ 5.32

Total unit cost: $ 49.72

Cost to produce 675 chairs:

675 charis x $ 49.72 per chair = $ 33,561‬

You have purchased 1 million shares in a restaurant chain venture. At this zero-stage investment, your company’s assets are $110,000 plus the idea for your new product. Look back at your restaurant chain venture. Suppose that when you first approach your friendly VC, he decides that your shares are worth only $1.00 each. a. How many shares will you need to sell to raise the additional $1,370,000?
b. What fraction of the firm will you own after the VC investment? (Round your answer to 1 decimal place.)

Answers

Answer:

(a) 1,370,000 shares

(b) 42.19%

Explanation:

Given that,

Shares in a restaurant chain venture = 1,000,000 shares

Price of each share = $1.00

(a) To raise the additional $1,370,000:

Shares will you need to sell:

= Additional amount ÷ Price of each share

= $1,370,000 ÷ $1.00

= 1,370,000 shares

(b) No. of Shares After investment:

= Shares need to sell + Shares in a restaurant chain venture

= 1,370,000 + 1,000,000

= 2,370,000 shares

Therefore, the fraction of the firm will you own after the VC investment:

= (Shares in a restaurant chain venture ÷ No. of Shares After investment) × 100

= (1,000,000 ÷ 2,370,000) × 100

= 0.4219 × 100

= 42.19%

You have 24 cups of milk.You need 1.25 cups to make one serving of deep-fried chicken.
How many servings can you make? Whole servings only - round down
rather than using partial servings.
Answer:
to make a servings of roast beef gravy.

Answers

Answer:

19.2 serving

Explanation:

Because if you have 24 cups of milk and need 1.25 cups to make 1 serving we would have to divide.

24 cups of milk - 1.25 cups of milk per serving = 19.2

Cheap Money Bank offers your firm a discount interest loan at 8.25% for up to $25 million and, in addition, requires you to maintain a 15 percent compensating balance against the amount borrowed. What is the effective annual interest rate on this lending arrangement?

Answers

Answer:

10.75%

Explanation:

The computation of the effective annual interest rate is shown below:

= Interest ÷ total net amount available

where,

Total net amount available would be

= Loan amount - Loan amount × interest rate - loan amount × compensating percentage

= $25,000,000 - $25,000,000 × 8.25% - $25,000,000 × 15%

= $25,000,000 - $2062,500 - $3,750,000

= $19,187,500

And, the interest would be $2,062,500

Now put these values to the above formula

So, the rate would equal to

= $2,062,500 ÷ $19,187,500

= 10.75%

Identify a true statement about coaching. a. Coaching should never be carried out in groups.
b. Coaches make suggestions to clients rather than elicit ideas.
c. Coaches clarify an individual's psychological contract.
d. Coaching is typically a special investment in top-level managers.

Answers

Answer:

b. coached make suggestions to clients rather than elicit ideas.

Final answer:

Coaches clarify an individual's psychological contract.

Explanation:

A true statement about coaching according to the options given would be option c: 'Coaches clarify an individual's psychological contract.' This specific line of action within coaching entails that coaches help clients clarify their professional roles, duties, and expectations, which can also indirectly lead to mental clarity.

As for the other options, they each possess some inaccuracies. Option a: 'Coaching should never be carried out in groups,' is incorrect because group coaching is indeed a common practice. Option b: 'Coaches make suggestions to clients rather than elicit ideas,' is inaccurate due to coaches often encouraging clients to develop their thoughts and solutions. Lastly, option d, 'Coaching is typically a special investment in top-level managers,' comprises a limited viewpoint since coaching is applicable to employees of all levels.

Learn more about Coaching here:

brainly.com/question/34419925

#SPJ6

Other Questions

Four basic steps are used in an ABC system. List the proper order of these steps, which are currently scrambled below:a. Identify the primary activities and estimate a total cost pool for each.b. Allocate the costs to the cost object using the activity cost allocation rates.c. Select an allocation base for each activity.d. Calculate an activity cost allocation rate for each activity.A) c, a, b, dB) a, c, d, bC) b, a, c, dD) a, d, c, b

At the end of business on September 1, the total displayed on the cash register tape shows $1,059 of cash sales for the day. However, when the clerk and the supervisor count the cash in the register, the count reveals that $1,050 was actually collected from customers. Required:Write down the journal entry.

In the context of using information technologies for a competitive advantage, which statement is true of a top-line strategy? a. It focuses on generating new revenue by offering new products and services. b. It focuses on improving efficiency by reducing overall costs. c. It focuses on helping different market segments achieve technological advancement. d. It focuses on refining operations by using latest technologies.

Chun Hei is carrying out a marketing research study. Even after seeking all reasonable available secondary data sources, she has not been able to adequately answer the research questions. In such a situation, Chun Hei must collect ________ data. Multiple Choice cohort syndicated derived primary referential