FIN242 Indah Bayu Sdn Bhd needs to raise RM750, 000 in short term loan for five months: Corporate Finance Group Assignment, UiTM, Malaysia

University Universiti Teknologi MARA (UiTM)
Subject CORPORATE FINANCE Assignment

Question 4
Indah Bayu Sdn Bhd needs to raise RM750, 000 in short term loan for five months. The company has the following alternatives to choose from:

Alternative 1
Forego trade credit with the credit terms of 3/15, net 60.

Alternative 2
A line of credit of RM950,000 with 5% commitment fee on the unused fund, and an 8% stated interest rate.

Alternative 3
Issue commercial paper with a face value of RM150,000 each at 15% per annum. The issuing cost is RM4,000 per paper. (1 year= 360 days)

Alternative 4
To obtain a loan from DXD BANK at a discounted interest rate of 7% per annum and a 12% compensating balance. The present account balance in the company is RM25, 000.
i. Compute the effective interest rates of the above financing alternatives (16 marks)
ii. Which is the best financing alternative should Indah Bayu Sdn Bhd choose? Why?

Get Solution of this Assessment. Hire Experts to solve this assignment for you Before Deadline.

Get Help By Expert

Embarking on your Corporate Finance journey at Universiti Teknologi MARA (UiTM) in Malaysia? Great news! Our online assignment help specializes in offering Report Writing Help for Group Assignments. Specifically, addressing the financial necessity of Indah Bayu Sdn Bhd to secure RM750,000 in a short-term loan for a five-month period in your Corporate Finance Group Assignment at UiTM? Our expert team is primed to provide the necessary support. Malaysian students can elevate their academic performance by availing themselves of our expert assistance, ensuring proficiency in managing financial complexities within UiTM's coursework.

Answer
Online Exam & Assignment Writing Services

11770+ Orders Delivered

4.9/5
5 Star Rating

Confidential & Secure Assignment Help For

Group Assignment Help

Online Exam -Test & Quiz

Cheapest Price Quote

Diploma & Certificate Levels

Semester & FYP Papers

Summative & Individual

GBA & Reflective

Last Minute Assistance

Sample Assignment Download

IBM537 Global Market Places Assignment Sample UiTM Malaysia
The course will introduce the students to various regions around the world and examine how they differ from each other. They'll also learn about what makes one region more attractive…
Marketing
FAR660 Advanced Financial Accounting And Reporting 2 Assignment UITM Example Malaysia
The course builds on the knowledge and skills introduced in FARS 410, 460, 510 & 560; it reinforces fourth stage capabilities/competencies with IFRS. The discussion of professional accountants' role in…
Accounting

UP TO 15 % DISCOUNT

Instant Paper Writing Services by Native Malaysia Writers

Plagiarism Free Solutions
100% Original Work
24*7 Online Assistance
Native PhD Experts
Hire a Writer Now

Get Assistance for Assignments, online Exam, and Projects Writing