BUS 251 Lecture Notes - Lecture 10: Gildan Activewear, Effective Interest Rate, Interest Rate
Liabilities are obligations agreed to by a company as the result of a past transaction, which will be settled by the future transfer of assets or services. You owe . 27 on a department store credit card. The store tells you that the minimum payment this month is . The store credit cards charge an annual interest rate of 29. 9% (this works out to 2. 4917% monthly). A company borrows . 5 million to purchase a new factory (land and building). The terms of the mortgage agreement include: note disclosure gildan activewear inc. The company has a committed unsecured revolving long-term bank credit facility of billion . As at january 3, 2016, . 0 million (october 5, 2014 - . 0 million) was drawn under the facility, and the effective interest rate for fiscal 2015 was 1. 4% (2014 - 1. 2%). The revolving long-term bank credit facility requires the company to comply with certain covenants including maintenance of financial ratios.