FIN3702
Assignment 1
Semester 2
2024 (355803)-
DUE 6
September
2024
[Type the document subtitle]
, [Pick the date]
[Type the company name]
Book
Managerial Finance
FIN3702 Assignment 1 (COMPLETE ANSWERS) Semester 2 2024 (355803)-
DUE 6 September 2024 ; 100% TRUSTED Complete, trusted solutions and
explanations.
Question 1 Not yet answered Marked out of 1.00 Question 2 Not yet
answered Marked out of 1.00 QUIZ Which of the following is appropriate
collateral for a loan secured under a fl oating inventory lien? 1. Cars 2. Paper
clips 3. Drill presses 4. File cabinets A fi rm has issued R2 million worth of
commercial paper that has a 90-day maturity and sells for R1 950 000. The
approximateannual interest rate on the issue of commercial paper is …
(assume 365 days in a year). 1. 5% 2. 11% 3. 21% 4. 23% Question 3 Not yet
answered Marked out of 1.00 Question 4 Not yet answered Marked out of
1.00 Question 5 Not yet answered Marked out of 1.00 Lenders recognize that
by having an interest in collateral they can reduce losses if the borrowing fi rm
defaults, … 1. and the presence of collateral reduces the risk of default. 2. but
the presence of collateral has no impact on the risk of default. 3. therefore,
lenders prefer to lend to customers from whom they are able to require
collateral. 4. therefore, lenders will impose a higher interest rate on unsecured
short-term borrowing. A Taijikwan Mining fi rm borrowed R100,000 for one
year under a revolving credit agreement that authorized and guaranteedthe fi
rm access to R200,000. The revolving credit agreement had a stated interest
rate of 7.5% and charged the fi rm a 1%commitment fee on the unused
portion of the agreement. Based on this information, the effective annual
interest rate on theloan was … 1. 7.5% 2. 8.0% 3. 8.5% 4. 9.0% The major
type of loan made by banks to businesses is the … 1. fi xed-asset-based loan.
2. short-term secured loan. 3. capital improvement loan. 4. short-term self-
liquidating loan. Question 6 Not yet answered Marked out of 1.00 Question 7
Assignment 1
Semester 2
2024 (355803)-
DUE 6
September
2024
[Type the document subtitle]
, [Pick the date]
[Type the company name]
Book
Managerial Finance
FIN3702 Assignment 1 (COMPLETE ANSWERS) Semester 2 2024 (355803)-
DUE 6 September 2024 ; 100% TRUSTED Complete, trusted solutions and
explanations.
Question 1 Not yet answered Marked out of 1.00 Question 2 Not yet
answered Marked out of 1.00 QUIZ Which of the following is appropriate
collateral for a loan secured under a fl oating inventory lien? 1. Cars 2. Paper
clips 3. Drill presses 4. File cabinets A fi rm has issued R2 million worth of
commercial paper that has a 90-day maturity and sells for R1 950 000. The
approximateannual interest rate on the issue of commercial paper is …
(assume 365 days in a year). 1. 5% 2. 11% 3. 21% 4. 23% Question 3 Not yet
answered Marked out of 1.00 Question 4 Not yet answered Marked out of
1.00 Question 5 Not yet answered Marked out of 1.00 Lenders recognize that
by having an interest in collateral they can reduce losses if the borrowing fi rm
defaults, … 1. and the presence of collateral reduces the risk of default. 2. but
the presence of collateral has no impact on the risk of default. 3. therefore,
lenders prefer to lend to customers from whom they are able to require
collateral. 4. therefore, lenders will impose a higher interest rate on unsecured
short-term borrowing. A Taijikwan Mining fi rm borrowed R100,000 for one
year under a revolving credit agreement that authorized and guaranteedthe fi
rm access to R200,000. The revolving credit agreement had a stated interest
rate of 7.5% and charged the fi rm a 1%commitment fee on the unused
portion of the agreement. Based on this information, the effective annual
interest rate on theloan was … 1. 7.5% 2. 8.0% 3. 8.5% 4. 9.0% The major
type of loan made by banks to businesses is the … 1. fi xed-asset-based loan.
2. short-term secured loan. 3. capital improvement loan. 4. short-term self-
liquidating loan. Question 6 Not yet answered Marked out of 1.00 Question 7
