A Chinese exporter sells $400,000 of toys to a French importer. The Chinese exporter requires the French

Fantastic news! We've Found the answer you've been seeking!

Question:

A Chinese exporter sells $400,000 of toys to a French importer. The Chinese exporter requires the French importer to obtain a letter of credit. When the bank accepts the draft the exporter discounts the 90 day note at a 5.6% discount.

What is the exporter's true effective annual financing cost?

Related Book For answer-question

International Business Law and Its Environment

ISBN: 978-0324649659

7th Edition

Authors: Richard schaffer, Filiberto agusti, Beverley earle

See More Books

Posted Date: May 03, 2023 06:33 AM

See More Questions

Read the case study and answer the question below with a one page response. What does a SWOT analysis reveal about the overall attractiveness of Under Armours situation? Founded in 1996 by former...
The Crazy Eddie fraud may appear smaller and gentler than the massive billion-dollar frauds exposed in recent times, such as Bernie Madoffs Ponzi scheme, frauds in the subprime mortgage market, the...
Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...
What approaches to recruitment can an employer adopt in order to create and project a positive public image?
Ross Corporations management wants to maintain a minimum monthly cash balance of $8,000. At the beginning of September, the cash balance is $12,270; expected cash receipts for September are $97,200;...
After the fiasco of the negotiations with Shirley and Matilda Fishing Pty Ltd, Francisco decided that selling his fishing vessel was just too much trouble. He has decided that the best way to make...
The Bode plot of shaft vibration of a turbine obtained during coast-down is shown in Fig. 10.44. Determine the damping ratio of the system when the static deflection of the shaft is equal to \(1.27...
Dillon, Jones, and Kline, Ltd. is studying the acquisition of two electrical component insertion systems for producing its sole product, the universal gismo. Data relevant to the systems follow....
There are three brief articles below that address both sides of the issue and a fourth attachment that presents Home Depot's statement on their approach to corporate responsibility from the 2022...
An investor is considering five possible investment strategies. The investor cares only about the expected payoff and possibly the variance of each strategy. The following table shows the payoffs...
Write a function called random_list that will take in a single integer n and return a list of n elements. each of which is a random integer between 1 and n, inclusive. Retum an empty list if n is...
My name is Daryl Davidson, and I am assistant to the director of Human Resources at MicroSinergie. Our company has a Yammer-based enterprise social platform, which we would like to use more...
When is the direct strategy more effective than the indirect strategy in delivering bad news?
Name the goals of business communicators in conveying negative news, and explain how they can achieve these goals.
As a vice president of a financial services company, you serve many clients, and they sometimes ask your company to contribute to their favorite charities. You recently received a letter from Mia...
Your frequent flyer miles expire on December 31 because you have earned no qualifying segments during this calendar year. However, you could keep your miles if you apply for our Northeastern credit...
.A bond pays a semiannual coupon of $40 and has a current value of $1109. the next payment on the bond is in four months, and the annual interest rate is 6.5%. using an annual compounding assumption,...
(a) Bright Sdn Bhd (BSB) is a tax resident manufacturing company in Johor, which involves in ceramic tiles. Currently, BSBs annual sales turnover has been forecasted to be around RM 300,000 for the...
Pursuant to Bulgarias new joint venture program, Zasada, Inc., a U.S. firm, constructs a football helmet manufacturing facility in Sofia to produce helmets for export to the United States. Four years...
What financing alternatives would be available to a U.S. firm that was interested in investing in a proposed manufacturing plant in a small country that recently left the communist bloc and did not...
CISG Articles 7173 contain legal rules on anticipatory breach. Article 77 contains rules on the mitigation of damages. These articles can be found in the appendix. Consider the following case: A...
A wire segment of $1.0 \mathrm{~m}$ and carrying a current of $5.0 \mathrm{~A}$ is held in a plane in which it can rotate and translate with little friction. A long wire is fixed parallel to this...
If $u$ is a velocity, $x$ a length, and $t$ a time, what are the dimensions (in the MLT system) of (a) $\partial u / \partial t$, (b) $\partial^{2} u / \partial x \partial t$, and (c)...
The Mach number is a dimensionless ratio of the velocity of an object in a fluid to the speed of sound in the fluid. For an airplane flying at velocity $V$ in air at absolute temperature $T$, the...

A Chinese exporter sells $400,000 of toys to a French importer. The Chinese exporter requires the French

Question:

Expert Answer:

SOLUTION The exporters true effective annual financing cost is 63 The discount rate of 56 is the nom... View the full answer

International Business Law and Its Environment

Students also viewed these accounting questions