BUSY Co. plans to sell a 180 day commercial paper amounting to Php 100,000,000 which it expects to pay a discounted interest of 12% per annum. BUSY expects to incur Php 100,000 in dealer placement fees and paper issue costs. Determine the effective cost of BUSY's credit. (Assume 360 day year).

Answer rating: 100% (QA)

To determine the effective cost of BUSY Cos credit we need to calculate the total amoun... View the full answer