A company issues $25,000,000 of commercial paper with a 182 day maturity at a discount rate of 4 0 The paper is sold through a dealer for an annual charge of 12 There is also a backup line of credit that costs 25 annum What is the effective annual cost of issuing the commercial paper A company iss...

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A company issues $25,000,000 of commercial paper with a 182-day maturity at a discount rate of...

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Fundamentals of Corporate Finance

ISBN: 978-0132148238

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Authors: Berk, DeMarzo, Harford

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A company issues $25,000,000 of commercial paper with a 182-day maturity at a discount rate of...

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