Question: Please compute the current ( before - tax ) cost of each of our current sources of short - term capital. Compute only for the

Please compute the current (before-tax) cost of each of our current sources of short-term capital. Compute only for the company LAS VEGAS SANDS.
$483 million in payable invoices that could be extended, most of which are under the terms 2/30 net 90.
$674 million in accrued interest from various short-term credit facilities. A typical one carries a 3.0% interest rate compounded annually, but on a discount basis.
$600 million in accrued payroll. We use a line-of-credit that we float an average of 30 days charging 3.8% interest each year.
$275 million in taxes due. The IRS is charging 7.0% interest, compounded daily, on large tax underpayments.
 Please compute the current (before-tax) cost of each of our current

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!