Montreal Brewers is going to issue $50 million of 90-day commercial paper for net proceeds of $49

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Montreal Brewers is going to issue $50 million of 90-day commercial paper for net proceeds of $49 million. Montreal Brewers must maintain a $50 million credit line, on which it must pay a standby fee of 0.2 percent. What is the commercial paper’s effective annual cost?

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Introduction To Corporate Finance

ISBN: 9781118300763

3rd Edition

Authors: Laurence Booth, Sean Cleary

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