A farmer is considering borrowing money from a bank. Given the following information:Initial loan amount is $52,000.The loan will be fully amortized in 3 years at 10%.Marginal tax rate is 15%.(i) What is the tax saving in the 1st year?a. $917.65 b. $780.00 c. $663.00 d. None of the answers are correct (ii) What is the tax saving in the 2nd year?a. $626.00 b. $640.41 c. $462.70 d. $544.35(iii) What is the total interest payment for this loan?a. $9,405.56 b. $12,287.97c. $10,729.91 d. None of the answers are correct

Which of the following actions would be most likely to reduce potential conflicts of interest between stockholders and bondholders? a) compensating managers with stock options, b) financing risky projects with additional debt, c) the threat of hostile takeovers, d) the use of covenants in bond agreements that limit the firm's use of additional debt and constrain managers actions, e) abolishing the security and exchange commission

At the end of the week, carla receives her paycheck and goes directly to the bank after work to make a deposit into her savings account. the bank keeps the required reserve and then loans out the remaining balance to a qualified borrower named malik as a portion of his small business loan. malik uses the loan to buy a tractor for his construction business and makes small monthly payments to the bank to payback the principal balance plus interest on the loan. the bank profits from a portion of the interest payment received and also passes some of the interest back to carla in the form of an interest payment to her savings account. in this example, the bank is acting

According to herman, one of the differences of managing a nonprofit versus a for-profit corporation is