Answer:
option (b) 9.5%
Explanation:
Data provided in the question:
Loan Amount = $2,000,000
Annual interest rate = 9%
Required compensating balance = $100,000
Now,
Effective interest rate(EIR)
= (loan × Annual interest on loan) ÷ (Loan - Required compensating balance)
= ($2,000,000 × 9% ) ÷ ( $2,000,000 - $100,000 )
= ($2,000,000 × 0.09 ) ÷ ( $1,900,000 )
= 0.0947 ≈ 0.095
or
= 0.095 × 100%
= 9.5%
Hence,
the answer is option (b) 9.5%
Answer:
12 months
Explanation:
The fiscal or financial period of a business lasts for 12 months or one year. It means that at the end of that 12 months, the business prepares its financial statement to determine its profitability. The business assesses its growth, success, and failure for the period.
After evaluating performance, planning for the next period of 12 months begins. The entrepreneur prepares a budget for the year, including their compensation. Compensation for the entrepreneur should be budgeted and reviewed every year together with the other budget items.
Answer:
1) 22%
2) YES as the return in the investment is 12% while the average cost of capital in this case; is of 8% hence there is a gain above the minimum accepted return.
Explanation:
IRR = 12%
weighted-average cost of capital:
DEBT 80,000 x 5% = 4,000
EQUITY 120,000 x 10% =<u> 12,000</u>
VALUE 200,000 16,000
16,000 / 200,000 = 8%
If the statement above asks if the statement is true or false. The answer of it is true. It is organized like a pyramid because it has a benefit and is another way of organizing the bureaucracy in which it could be followed and labeled, in order for it to provide proper information and to be read clearly and in an organized way.
A mutual fund that only invests in companies outside the united states is called a(n) <u>sector </u>fund.
A mutual fund is a professionally controlled investment fund that swimming pools money from many traders to purchase securities. The time period is commonly used inside the united states of America, Canada, and India, at the same time as comparable structures throughout the globe including the SICAV in Europe and open-ended funding corporation within the united kingdom.
A mutual fund is a pool of money controlled by a professional Fund manager. It's far a consider that collects money from some the buyers who share a common investment objective and invests the same in equities, bonds, cash marketplace instruments, and/or different securities.
Mutual funds are good funding for traders looking to diversify their portfolios. in preference to going all-in on one company or enterprise, a mutual fund invests in special securities to try and reduce your portfolio's risk.
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