Define cost of borrowing.

Q: Define the term loan cash flow?

A: Statement of cash flow: It refers to a financial statement that shows all the cash payments and…

Q: DEFINE credit policy

A: Credit policy is the set of policies governing a company’s credit sales, outstanding amounts;…

Q: Type of CPM Loan?

A: Introduction: CPM refers to constant payment mortgage, this is nothing but an arrangement…

Q: Define the term After-tax cost of debt?

A: Cost of capital is the overall cost of financing the funds from all sources of finance. The cost of…

Q: How do you calculate simple interest and commission?

A: Interest and commission is a special type of income generated on the principal amount or net…

Q: What is the Relationship between the Incremental Cost and the Loan-to-Value Ratio?

A: The question is based on the concept loan to value ratio and its relationship with incremental cost.

Q: ExplainValuing REITs as Investments?

A: Valuing REITs as investments: A typical way for the calculation of REIT is to find the Net asset…

Q: What is the loan cash flow?

A: Answer: A cash flow loan is nothing but a form of debt finance in which bank lends money usually for…

Q: Define secured basis loan

A: Introduction: Loan is the amount that investors borrow for a given period of time. Farmers pay a set…

Q: Explain an example of debt investment.

A: Debt Investment Debt Investment is refer as when the company raises the money by selling the debt…

Q: Define Net purchases.

A: Purchase discounts: The sellers offer a reduction in purchase price on initial purchases, to…

Q: Define the term pure borrowing?

A: The term borrowing is defined as the amount received from another party with the agreement that the…

Q: Explain the Structuring the Payment for a Target Debt Coverage Ratio?

A: Coverage Ratios are the ratios that depict that on an average how a firm would be able to cover its…

Q: Differentiate between the Loan and Project Cash Flows?

A: Loan Cash Flows:   It refers to the borrowing of unsecured nature that is used by small businesses…

Q: What does financing activities includes?

A: Cash Flow Statement:   It is a financial statement prepared by a company to report their cash…

Q: perlod of a loan or investment

A: Compounding period and period of loan are interrelated to each other.

Q: Define each of the following terms:c. Reserve borrowing capacity

A: The Reserve borrowing capacity is explained as below,

Q: give the definition, recognition, measurement and derecognition of "borrowing cost"

A: A uniform group of principles, standards, and procedures that explain the basic financial accounting…

Q: What is the quantitative disclosure of lessor?

A: Definition: Lease: Lease is a contractual agreement whereby the right to use an asset for a…

Q: Discuss the steps of loan structuring.

A: Loan structuring is defined as the components, which used to make the loan, like term loan, rate of…

Q: What is the difference between Direct and Indirect Financing?

A: Difference between direct financing and indirect financing are as follows

Q: How one determines where to borrow or not? What factor into the decision making process?

A: The act of borrowing money or the sum of money borrowed by an individual, company, government, or…

Q: Define Interest cost.

A: Cost: The amount paid to purchase the asset, install it, and put it into operations, is referred to…

Q: Define Incremental Borrowing Cost?

A: Incremental borrowing cost is used in the context of the cost of borrowing additional funds.

Q: Define reserve borrowing capacity

A: The question is based on the concept of capacity to borrowing of a firm based on the concept of…

Q: What is unsecured borrowing?

A: Definition:   Liabilities: The claims creditors have over assets or resources of a company are…

Q: lending

A: The term net lending is defined as an economic measure which measures as to whether the government…

Q: What will be the Effect of the After-Tax Interest Cost on Loan Decisions?

A: Interest cost for loan borrowers depends mainly upon the rate of interest charged by lenders.…

Q: Explain Loan Closing Costs and Effective Borrowing Costs?

A: Closing costs are the uses that buyers and vendors ordinarily pay to total a real estate deal, over…

Q: What is meant by a term-loan agreement?

A: A Loan Agreement, also known as a term loan, demand loan, or loan contract. It basically is a legal…

Q: What does “nonrecourse” financing mean?

A: Nonrecourse financing is a branch of commercial lending. It makes the lender only to repay from the…

Q: What is the purpose of a bridge loan?

A: Bridge loan is a short term loan taken to finance short term requirements of funds while awaiting…

Q: What are the financing borrowing activities?

A: The statement of cash flows is the statement which shows the change in the cash and cash equivalents…

Q: The capitalization rate used to determine the capitalizable borrowing cost should be disclosed.…

A: It is pertinent to note that as per IAS 23 borrowing costs incurred for acquisition, construction of…

Q: What does the financing activities include?

A: The statement of cash flows is the statement which shows the change in the cash and cash equivalents…

Q: Write the definition, recognition, measurement and derecognition of BORROWING COST

A: Following is the answer to the given question

Q: Define Seller Financing?

A: Seller financing : Seller financing is real estate agreement which means seller financing the real…

Q: The function of finance

A: Finance: This term is used broadly for the description of the analysis of money, investments, and…

Q: What do we call the cost that a borrower must payto use debt capital?

A: Debt capital is the capital that is borrowed from various financial institutions or other lenders…

Q: What is the actual cost of capital to the borrower?

A: The cost of capital to the borrower is the weighted average cost of capital from all sources of…

Q: Explain the term Verification of Borrower Assets?

A: Borrower is the person who take money on credit from a financial or non- financial institution.…

Q: How is Borrowing capitalized

A: Ans. Borrowing costs are interest and other expenses or costs that an entity incurs in connection…

Q: Explain the effective lending rate (ELR) and how it is derived?

A: ELR is generally used to know the true cost of lending. This concept is useful when be borrow money…

Q: Describe the methods of calculating interest?

A: In the finance industry, every decision revolves around the interest rate. This is a crucial…

Q: Types of seller financing?

A: Seller Financing: A real estate or property agreement under which the mortgage process is managed by…

Calculating the Return On A Loan