Most SBA loan assistance is made by guaranteeing loans made by commercial banks. True or False

Lance Chips granted restricted stock units (RSUs) representing 40 million of its $1 par common shares to executives, subject to

Rom4ik [11]

Answer:

$200 million

Explanation:

Data provided in the question

Number of granted restricted stock = 40 million at $1 par common shares

The market price per share = $5

So, the total compensation cost is

= Number of granted restricted stock × market price per share

= 40 million × $5 per share

= $200 million

Basically we multiplied the number of granted restricted stock with the market price per share

8 0

3 years ago

Mining Corporation purchases the business assets of Open Pit Inc., including its equipment and supplies, for an agreed-to price,

11Alexandr11 [23.1K]

Answer:

A sales.

Explanation:

The uniform commercial code (UCC) is a set of standardized business laws which are put in place for the regulation of financial contracts and commercial transactions used across different states in the United States of America.

In this scenario, Mining Corporation purchases the business assets of Open Pit Inc., including its equipment and supplies, for an agreed-to price, payable in installments. Under the UCC, this transaction is a sales.

4 0

2 years ago

What is the difference between having a co-signer and becoming an authorized user?

prohojiy [21]

Answer:

The correct answer is letter "D": As a co-signer, you open an account and an adult signs on with you; as an authorized user, you are added to someone’s existing account

Explanation:

Co-signers are individuals that could help others to open a credit card account in case that person does not meet specific credit history requirements but the credit card issuer. Co-signers must be 21 years old. Authorized users are added to the account to request information, change it, or make payments.

8 0

3 years ago

Read 2 more answers

If the midlands pencil corporation has issued several different debt securities, an investor would expect the lowest income stre

Dafna1 [17]

If the midlands pencil corporation has issued several different debt securities, an investor would expect the lowest income stream from convertible debentures.

Convertible bonds have many positive attributes for investors, but the main drawback is that investors accept lower interest rates in exchange for these benefits.

Convertible debentures are fixed rate debentures that pay interest but can be converted into a specified number of ordinary shares or shares. Conversion of a bond into equity may occur at certain times during the life of the bond and is generally at the discretion of the bondholder.

Due to this logic, a convertible bond allows the issuer to indirectly sell its common stock at a price higher than its current price. From a buyer's perspective, convertible bonds are attractive because they offer the opportunity to capture the potentially high yields associated with equities, but also the security of bonds.

Learn more about bonds here brainly.com/question/9817093

#SPJ4

3 0

1 year ago

North Bank has been borrowing in the U.S. markets and lending abroad, thereby incurring foreign exchange risk. In a recent trans

Vsevolod [243]

Answer:

A) 10.82%

B) 5.27%

C) 8.56%

Explanation:

Given data :

North Bank Borrow ; $1.4 million at 5 percent

Lend in pounds at 9%

spread = ( 4% )

spot rate = 1.454

A) Determine the loan rate to maintain the 4 percent spread

Expected spot rate = 1.43

First step :

Lending amount = $1.4 million / initial spot rate = 1.4 / 1.454 = £ 0.9628 million

= principal ( $1.4 million ) + interest ( 9% of 1.4 ) = 1.4 + 0.126 = $1.526 million

In pound ( at the expected spot rate )

= 1.526 / 1.43 = £1.067 million

expected profit = £1.067 - £0.9628 = £ 0.1042 million

Therefore the interest rate tp maintain the 4 percent spread

= 0.1042 / 0.9628 = 10.82%

B) Determine the net interest margin if the bank hedges its forward foreign exchange exposure

Forward rate = 1.46

assuming interest as value calculated above = ( 10.82% )

lending amount = £0.9628 million

Repayment = 0.9628 * 111% * 1.46 = $1.5603 million

therefore return rate = $1.5603 - $1.4 = $0.1603 million = 10.27%

hence : Net interest margin = 10.27% - 5% = 5.27%

C) Determine the loan rate to maintain the 4 percent spread if the bank intends to hedge its exposure using the forward rates.

Forward Hedging contract forward rate = 1.46

lending amount = $1.4 / 1.454 = £ 0.9628 million

Total Interest and Principal Repayment Required in $ to maintain 4% Spread = $1.526 million

In pound = 1.526 / 1.46 = £ 1.0452

Interest = £1.0452 - £0.9628 = £0.0824 million

therefore interest Rate to maintain 4℅ Spread

= ( 0.0824 / 0.9628 ) * 100 = 8.56%

3 0

2 years ago