Question: a. MIKO needs to increase its working capital by RM4.4 million. The following financing alternatives are available (assume a 365-day year): Forgo cash discounts (granted

The following financing alternatives are available (assume a 365-day year): Forgo cash

a. MIKO needs to increase its working capital by RM4.4 million. The following financing alternatives are available (assume a 365-day year): Forgo cash discounts (granted on a basis of *3/20, net 45") and pay on the final due date. Issue RM4.7 million of six-month commercial paper to net RM4.4 million. b. Assume that new paper would be issued every six months. Which alternative should MIKO select? [10 Marks]

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