chap财务管理说课.ppt

16.* Quick Quiz Suppose your average inventory is $10,000, your average receivables is $9,000 and your average payables is $4,000. Net sales are $100,000 and cost of goods sold is $50,000. What is the operating cycle and the cash cycle? What are the differences between flexible and restrictive short-term financial policies? What factors do we need to consider when choosing a financial policy? What factors go into determining a cash budget and why is it valuable? 13. a. If you borrow $50,000,000 for one month, you will pay interest of: Interest = $50,000,000(.0064) Interest = $320,000 However, with the compensating balance, you will only get the use of: Amount received = $50,000,000 – 50,000,000(.05) Amount received = $47,500,000 This means the periodic interest rate is: Periodic interest = $320,000/$47,500,000 Periodic interest = .006737 or 0.674% CHAPTER 18 B-311 So, the EAR is: EAR = [1 + ($320,000/$47,500,000)]12 – 1 EAR = .0839 or 8.39% b. To end up with $15,000,000, you must borrow: Amount to borrow = $15,000,000/(1 – .05) Amount to borrow = $15,789,473.68 The total interest you will pay on the loan is: Total interest paid = $15,789,473.68(1.0064)6 – 15,789,473.68 Total interest paid = $616,100.02 16.* 14. a. The EAR of your investment account is: EAR = 1.0124– 1 EAR = .0489 or 4.89% b. To calculate the EAR of the loan, we can divide the interest on the loan by the amount of the loan. The interest on the loan includes the opportunity cost of the compensating balance. The opportunity cost is the amount of the compensating balance times the potential interest rate you could have earned. The compensating balance is only on the unused portion of the credit line, so: Opportunity cost = .04($70,000,000 – 45,000,000)(1.012)4– .04($70,000,000 – 45,000,000) Opportunity cost = $48,870.93 And the interest you will pay to the bank on the loan is: Interest cost = $45,000,000(1.023)4– 45,000,000 I