Concepts Learned to a Real-life Simulation Experience - Research Paper Example

Only on StudentShare

Extract of sample
Concepts Learned to a Real-life Simulation Experience

Now, on the right hand side of the equation, ‘e’ is taken as the number of times the interest is compounded. Now if we substitute the values in the equation we can get the following results. National First   Prime Rate 3.25% Floor Rate 6.75% Number of times compounded Semiannually i 0.1 e 2 a 10.25% Regions Best   Prime Rate 13.17% Number of times compounded Monthly i 13.17% e 12 a 13.99% (ii) Thus it is apparent from the above calculation that the company should borrow from National First Bank as it is charging interest at a lesser Equivalent rate which is 10.25%. If we suppose that the company acquires loan amounting to $ 8 million, then following will be the annual interest charge that the company will have to record in its income statement Loan Amount Bank Rate on interest Interest Charge $ 8,000,000 National First 10.25% $ 820,000.00 $ 8,000,000 Regions Best 13.99% $ 1,119,200.00 Thus it is apparent from the above calculation that in case of National First Bank, the company would have to pay lesser amount of interest as compared to that if the loan amount was obtained from Regions Best Bank. By adopting to obtain funds from National First, the company will save $299,200 on account of interest payments. ...Show more

Summary

Task 1 (i) Air Jet Best Part is planning to purchase a factory in Mexico which amounts to $ 8 million. After careful deliberation, the company has decided to raise the funds required for the project through a combination of loan facility and by issuing corporate bonds…
Author : trevavonrueden
Save Your Time for More Important Things
Let us write or edit the research paper on your topic
"Concepts Learned to a Real-life Simulation Experience"
with a personal 20% discount.
Grab the best paper

Related Essays

Trading Simulation Assignment
The purpose of this paper is to evaluate and present analysis of portfolio value and risk of the portfolio; analysis of the various strategies; overall profitability. Continuous monitoring of the stocks market is also necessary so as to effective manages one portfolio. Continuous monitoring helps also in benchmarking as preventing inventors in running to huge amount of losses.
19 pages (4750 words) Essay
Appling the EMH evaluate the role that government played in economic recovery using recent real-life examples
The concept of efficiency is at the epicentre on the finance concepts. The efficiency in the market is a term that is used to describe the market of financial assets as well as securities. The information prevailing in the market has the central role to play in this type of market structure.
12 pages (3000 words) Essay
Mann Ltd
.This downward shift is attributed to a sharp descent in net profits.The rise in assets has failed to show an increase in income of the company. Sales of the company has shown an increase but factors associated with sales like operating profit margin and gross profit margin has shown an inverse trend.
1 pages (250 words) Coursework
Real-Life Relevance anf Contribution to the Development of Accounting and Finance Regulation
So, although academic research may be beneficial, it may not always be necessary or even helpful. A range of research issues which have been identified and then linked specifically to outcomes in the form of regulations and/or changes in regulations will be discussed, which include, but are not limited to (in no particular order): “quants,” President Obama and his leadership regarding fiscal policy, the American Jobs Act (and what it attempts to actually achieve), U.S.
10 pages (2500 words) Essay
Investment Analysis and Security Valuation to a Real Life Situation
The paper evaluates the security within the broader spectrum of the specific sector in the economy of Saudi Arabia. The performance of the sector also has been taken into consideration while making the recommendation; vital financial parameters of the security have been checked and analyzed with the help of the financial statements about the security with help of the data and statements available on the Tadawul stock exchange.
8 pages (2000 words) Research Paper
The Lawrence Sports Simulation
Obviously, as a leader in retail, it must be able to adequately manage its capital. There are a few stores—including Murray and Gartner—from which Lawrence’s goods are procured. In order to issue a recommendation for Lawrence Sports, a few things might be in order to mention first.
6 pages (1500 words) Research Paper
Lawrence Sports Simulation
Mayo Stores, the world’s leading retailer, is the major customer of Lawrence Sports. The Lawrence’s suppliers are Gartner Products and Murray Leather Works. This paper will suggest an alternative working capital policy for Lawrence Sports in order to reduce several future difficulties.
3 pages (750 words) Essay
Financial accounting theories in a real life
It has been observed from the analysis of the report that there should be certain strict regulations in order to reduce cases related to misleading financial accounts which ultimately affect the global financial world. Introduction Accounting is known as the universal language relating to business all over the world.
8 pages (2000 words) Assignment
Floating a private company Assignment
In this regard, Tenpin has to dispose some of its shares to the public. In essence, the company has to put into consideration vital factors that dictate its move to make it a public company. These include choice, access to capital,
4 pages (1000 words) Essay
Corporate risk management
In a nutshell, risk retention is a strategy that recognizes the firms profit in managing the eventuality of loss on their own rather than managing it through insurance or offsetting it to third parties. Quantum of Investment: Apart from the usual financial
8 pages (2000 words) Essay
Find out how much would it cost
to get a custom paper written by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
YOUR PRIZE:
Apply my DISCOUNT