On October 1,2018,Parker Company Made a Loan to One of Its

question 176

Multiple Choice

On October 1,2018,Parker Company made a loan to one of its customers.The customer signed a 9-month note for $150,000 at 13%.Calculate the maturity value of the note.(Round any intermediate calculations to two decimal places,and your final answer to the nearest dollar.)

• A) $164,625
• B) $169,500
• C) $130,500
• D) $135,375

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Definitions:

Common Stock

A type of equity ownership in a corporation, giving holders voting rights and a share in the company's profits through dividends.

Restrictive Covenants

Clauses in a contract that limit or restrict actions the borrower may take during the term of the loan to protect the lender's interests.

Direct Placement

A method of raising capital by selling securities directly to institutional investors like pension funds and mutual funds without public offering.

Long-term Debt

Refers to loans or borrowed capital that is repaid over a time frame longer than one year.