Refinancing Short Term Debt
So the question is: how much of Holmes' $7 million is current and how much is long term?
Step 1 - What are the proceeds from the refinancing?
Answer: Holmes has a minimum of $6 million in A/R and she can borrow up to 60% of it.
Harris Co, $2,000,000 Face Value, 10% coupon notes, Due 1/1/2019
Paymts Per Yr
E 14.6 asks for straight line amortization
Amortization Carrying Valu