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blagie [28]
3 years ago
12

While the risks of construction lending may be less in a number of respects than those associated with land acquisition, banks s

till require a premium in their lending rate as compensation for the risks involved. For construction loans, banks typically require a premium above LIBOR that ranges from
Business
1 answer:
mojhsa [17]3 years ago
8 0

Answer: C. 150-250 basis points

Explanation:

Banks now charge between 150 to 250 basis points above the London Interbank Official Rate (LIBOR). This means that they charge a premium of between 1.5% to 2.5% over LIBOR for construction projects.

Like earlier mentioned, risks of construction lending may be less in a number of respects than those associated with land acquisition but however there are still risks. Risks such as low Tenancy when built, the potential Environmental problems and location.

This is why it is necessary to charge such a premium which is actually a very competitive rate amongst Banks.

If you need any clarification do comment.

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Kelly Corporation uses an activity-based costing system with three activity cost pools. The company has provided the following d
lara [203]

Answer:

$336,000

Explanation:

Calculation for How much cost that would be allocated in the first-stage allocation to the Order Processing activity cost pool

Total Order Processing activity cost pool

Wages and salaries: 60% × $360,000

Wages and salaries= $216,000

Depreciation: 35% × $200,000

Depreciation=$70,000

Occupancy : 50% × $100,000

Occupancy=$50,000

TOTAL =$336,000

Therefore the amount of cost that would be allocated in the first-stage allocation to the Order Processing activity cost pool will be $336,000

5 0
3 years ago
His photo shows a label that appears on food products in the United States. This label is an example of producer innovation in a
Nady [450]

Answer:

The correct answer would be option C, Regulation by a government agency.

Explanation:

There is no photo given, but i searched it on internet and i found that a photo labeling the Nutritional Facts is attached with this question at some other sites. So taking that into account, it is clear that the label of nutritional facts appear on all products produced by all producers in the country because it is a regulation by a government agency which asks producers to write down the nutritional value for the product they are making to make the people aware of the nutrition of the product which they are going to buy. So option C would be the appropriate answer.

6 0
4 years ago
Read 2 more answers
Which part of an insurance application would contain information regarding the cause of the death of the applicants deceased rel
ziro4ka [17]

Answer:

Medical information of the application includes information on the prospective insured's medical background, present health, any medical visits in recent years, medical status of living relatives, and causes of death of deceased relatives.

8 0
3 years ago
Suppose ​$200 comma 000 is deposited at a bank. The required reserve ratio is 20 ​percent, and the bank chooses not to hold any
tino4ka555 [31]

Answer: The bank's total loans amount is $160,000.

Explanation: The bank got a total deposit of $200,000 from its customers. The reserve ratio was given as 20%. The is the cash reserve amount that should be domiciled with Fed. So 20% of $200,000, which is the total deposit is $40,000. This means an amount of $40,000 is the reserved cash. Since the bank has chosen not to keep any excess reserves, it means the bank would be availing a total loans amount of $160,000 (%200,000 - $40,000) to its customers.

4 0
4 years ago
Aerotron Electronics is considering the purchase of a water filtration system to assist in circuit board manufacturing. The syst
abruzzese [7]

Answer:

Dheod d

Explanation:

4 0
3 years ago
Read 2 more answers
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