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Ket [755]
3 years ago
6

Cost of Bank Loans Gifts Galore Inc. borrowed $1.6 million from National City Bank. The loan was made at a simple annual interes

t rate of 12% a year for 3 months. A 25% compensating balance requirement raised the effective interest rate. Do not round intermediate calculations. Round your answers to two decimal places. The nominal annual rate on the loan was 11.5%. What is the true effective rate? % What would be the effective cost of the loan if the note required discount interest? % What would be the nominal annual interest rate on the loan if the bank did not require a compensating balance but required repayment in three equal monthly installments? %
Business
1 answer:
babymother [125]3 years ago
3 0

Answer: 23456

Explanation: its math

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A portfolio is composed of two stocks, A and B. Stock A has a standard deviation of return of 19%, while stock B has a standard
tangare [24]

Correlation coefficent =  0.5356

<u>Explanation:</u>

Portfolio variance = (Standard of stock A * Weightage of stock A)2 + (Standard of stock B * Weightage of stock B)2 + 2 * (Standard of stock A * Weightage of stock A) * (Standard of stock B * Weightage of stock B) * Correlation coefficent.

0.034=(19 \% * 0.70)^{2}+(25 \% * 0.30)^{2}+2 * 19 \% * 0.70 * 25 \% * 0.30 * Correlation coefficent

By calculating the above equation, we get,

=> Correlation coefficent =  0.5356

3 0
3 years ago
Jake earned $15,000 and paid $1,500 of income tax, while jill earned $40,000 and paid $3,000 of income tax. the structure of the
maksim [4K]
The structure of the tax their income is subject to is regressive based on the tax information on the question above. First, you have to find the tax percentage for each of the people which are 10% for Jake and 7.5% for Jill. The tax percentage decreases in relation to the increase in income and this is the character of a regressive tax.
7 0
3 years ago
The odd-lot trading theory advocates that small investorsA) tend to buy high and sell low.B) react in a manner which generally f
Umnica [9.8K]

Answer:

The correct answer is A) tend to buy high and sell low.

Explanation:

The theory of odd lots is a theory of technical analysis based on the assumption that the small individual investor who trades foreign lots is often wrong. Therefore, if sales of odd lots increase and small investors are selling a share, it is probably a good time to buy. Vice versa, when purchases of odd lots increase, the theory of odd lots would indicate a good time to sell.

8 0
4 years ago
The prepaid insurance account had a balance of $9,400 at the beginning of the year. The account was debited for $10,400 for prem
soldier1979 [14.2K]

Answer:

Following are the response to the given points:

Explanation:

\text{Insurance Expense} =\text{ Beginning Prepaid Insurance} + \text{Cash Premium Paid} -\text{Ending Prepaid Insurance}

                             = \$9,400 + \$10,400 - \$3,730\\\\ = \$16,070

Date  \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ General \ Journal  \ \ \ \ \ \ \ \ \ \ \ \ \ \ \  Dr.  \  \ \ \ \ \ \ \ \ Cr. \\\\ March \ 31\ \ \ \ \ \ \ \ Insurance \ Expense  \ \ \ \ \ 16,070 \ \ \ \ \ \ \ \ \ \ \ \ \  \\\\

                       Prepaid\ Insurance \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 16,070\\\\

For point b:

Date  \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ General \ Journal  \ \ \ \ \ \ \ \ \ \ \ \ \ \ \  Dr.  \  \ \ \ \ \ \ \ \ Cr. \\\\ March \ 31\ \ \ \ \ \ \ \ Insurance \ Expense  \ \ \ \ \ 18,100 \ \ \ \ \ \ \ \ \ \ \ \ \  \\\\

                       Prepaid\ Insurance \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 18,100\\\\

5 0
3 years ago
If $500 cash and a $2,000 note are given in exchange for a delivery truck for use in a business?
ivann1987 [24]

If $500 cash and a $2,000 word are given in change for a delivery truck for use in a commercial enterprise The stockholders '  equity is increased.

Shareholders' equity is the amount that the owners of an employer have invested in their enterprise. This includes the money they've without delay invested and the accumulation of income the agency has earned and that has been reinvested since inception.

Shareholder fairness is the difference between a firm's overall property and general liabilities. This equation is known as a balance sheet equation as all of the relevant information can be gleaned from the stability sheet.

Stockholders' equity has three common components: paid-in capital, treasury stock, and retained earnings. Three types of commercial enterprise entities exist companies, sole proprietorships, and drift-via entities which include partnerships. Stockholders' fairness applies most effectively to the corporate enterprise entity.

Learn more about stockholders here: brainly.com/question/14032844

#SPJ4

4 0
2 years ago
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