Answer: The overarching purpose of credit risk analysis is to quantity potential credit losses.
Explanation:
The main purpose of the credit risk analysis is to quantify the amount of credit risk which is presented to the lender by the borrower. Credit risk analysis involves the assigning of measurable numbers to estimated probability of the amount borrowed by the borrower.
Credit risk analysis is a method of analysis that is performed on potential borrowers by a credit analyst to determine their capacity to meet their debt obligations. The main aim of credit analysis is to help determine the creditworthiness of borrowers and to know if they are capable of honoring their debt obligations.
If the borrower is analysed and the credit analyst is okay with the person, the person can be borrowed the amount he asks for as the outcome of the credit risk analysis is used to determine the risk rating assigned to the borrower.
Science, you may be asking why?
Science is fun to learn but it is quite difficult to comprehend especially Life Science, I can improve myself by studying more, taking tutoring classes and asking questions when I don't understand a particularly part of the work
Answer:
Total cash receipts 194,760
Explanation:
We will calculate base on the budget number provided.
We will multiply the month sales revenue by the amount expected to be colelcted on september
The receipts from account receivable on september:
<u>60% of previous month:</u>
60% of August: 198,000 = 118,800
<u>36% from the second month:</u>
36% of July: 211,000 = <u> 75,960 </u>
Total cash receipts 194,760
Answer:
Since the market value equals face value,coupon rate =yield is 75/1000=7.5%
That is 7.5% is before tax cost of floating the bonds
At tax rate of 30%,after tax cost of floating bond =7.5%*(1-30%)=5.25%
However,with a flotation cost of 2%,the before tax cost of flotation is calculated using below formula found in the explanation section.
((75+(1000-980)/25)/(980+1000)*2)=7.66%
Since tax rate remains 30%,the after tax cost of floating the bond with floating cost of 2% is: 7.66%*(1-30%)=5.36%
Explanation:
(Interest payment+((Par value-Net Proceds Value)/number of yr)/(Net Proceds+Par value)/2
Answer:
$ 2800
Explanation:
Given data:
The cost of Jerome Jame's vacation home = $ 112,000
The tax rate = 25 mills
now,
the mills is converted into the dollar rates amount by dividing the mills rate by 1000
thus,
the rate in dollars = 25/1000 = 0.025
therefore,
the tax to be paid = 0.025 × $ 112,000
or
The tax to be paid = $ 2800