Granite Apparel Case Study

4.       Interest expense will reflect that there is now $12 million in long-term debt in the form of bonds payable at 10.75%. Ten million dollars of new debt is being added to $2 million of old debt.

1) Establish the principal and interest amount of the monthly payment. Using the 30 year loan principal and interest amount of the payment is $1,150.92

Interest earned now can be found from getting the difference between the principal and amount.

As shown in the ratios chart, working capital has increased by $13M. Maturities of short-term investments and cash flow from operations are projected to be sufficient to sustain the company’s overall financing needs, including capital expenditures. The following corporate strategic plan identifies a project that needs financial backing.

ratio of 0.25. The cost of equity is 12 percent and the cost of debt is 7 percent. The corporate tax rate is

12. If a corporation issued $3,000,000 in bonds which pay 10% annual interest, what is the annual net cash cost of this borrowing if the income tax rate is 30%?

Assume Amy has $45,000 in Federal student loan debt at 6.0% interest rate on a 10-year, standard repayment plan. Amy decides to refinance her loans to private loans to get a lower interest rate. Amy and her lender agree to a new loan with a principal balance of $45,000 at a 4.0% interest rate for a period of 25 years. Using a simple amortization calculator, I came up with the following calculations:

It calculates the periodic payment for a loan with a fixed interest rate and a fixed term

For $1,000 financed at 5%, the factor to calculate your monthly payment is .659955739. Therefore, for $80,000 your payment is $528 per month or $6,336 per year. (Rounded)

Suppose you take a mortgage for $72,764 for 16 years with annual payments.  If the annual interest rate is 3.4%, calculate the total interest amount paid over the life of the loan. That is, calculate the total interest paid in 16 years.

As the organization grows, the agency will have to increase employees, create assistant management positions, marketing positions as well as other support staff and at that time if the capital is not available the agency will have to find additional capital to cover expansion expenses, or the agency will find other financing options in the area of government grants, economic stimulus grants, and business expansion

Market value proportions of: Debt = $1,147,200 / $4,897,200 = 23.4% Pref. Share = $1,250,000 / $4,897,200 = 25.5% Common equity = $2,500,000 / $4,897,200 = 51.1%

initiative is to attract outside capital, given the lack of collateral and sufficient cash flows and the

This work is an introduction to the fashion industry of Pakistan which has made quite a lot of progress in just a few years. Ten to fifteen years from now, this industry was still unknown to actually exist to the masses. Later with the formation of fashion councils and education centers under the enthusiastic few who wanted to make a difference and promulgate this very institution of fashion, did the very fashion industry took its concrete contour from the old tailor culture that formerly existed. Today it is one of the most progressing industries in the country.

Q3. Does the company have any other sources that it could use to raise the funds it requires? Explain. (In your answer consider the amount required and the purpose of the funds). In which market can these funds be sourced from?