Kwong Yuen Company is ready to buy an office unit. The company has $1,800,000 for the (1) down payment, (2) costs related to bank loan, and (3) interior renovation cost.
Costs related to bank loan are estimated to be 6% of the loan value. Interior renovation
cost is estimated to be $880,000.
The company has an annual EBIT of $960,000 and the bank is willing to allow monthly
mortgage payment not higher than 40% of the monthly EBIT.
The interest rate on the 26-year instalment loan is 5.27% per year with monthly
compounding.
a) Identify the Effective Annual Rate of the instalment loan. (3 marks)
b) Find out how much the bank loan could be. (Take numbers in full during the process
of calculation. Show the final answer with two decimal places.) (4 marks)
c) Find out the price of the office unit the company could afford, taking the costs related
to bank loan and interior renovation cost into consideration.

Identify which of the twelve basic functions listed below fit the description given.

Match the given situations to the type of risks that a business may face while taking credit.(there's not just one answer)1. beta ltd. had taken a loan from a bankfor a period of 15 years, but its salesare gradually showing a decline.2. alpha ltd. has taken a loan for increasing its production and sales, but it has not conducted any researchbefore making this decision.3. delphi ltd. has an overseas client. the economy of the client’s country is going through severe recession.4. delphi ltd. has taken a short-term loanfrom the bank, but its supply chain logistics are not in place. a. foreign exchange riskb. operational riskc. term of loan riskd. revenue projections risk

Xyz corporation has provided the following data concerning manufacturing overhead for july: actual manufacturing overhead incurred $ 69,000 manufacturing overhead applied to work in process $ 79,000 the company's cost of goods sold was $243,000 prior to closing out its manufacturing overhead account. the company closes out its manufacturing overhead account to cost of goods sold. which of the following statements is true? multiple choice manufacturing overhead was overapplied by $10,000; cost of goods sold after closing out the manufacturing overhead account is $253,000 manufacturing overhead was underapplied by $10,000; cost of goods sold after closing out the manufacturing overhead account is $233,000 manufacturing overhead was underapplied by $10,000; cost of goods sold after closing out the manufacturing overhead account is $253,000 manufacturing overhead was overapplied by $10,000; cost of goods sold after closing out the manufacturing overhead account is $233,000