Question: Problems #2 This time you choose as permanent NWC any amount between the largest NWC and smallest NWC and take out the fixed rate loan

Problems #2 This time you choose as permanent NWC any amount

Problems #2 This time you choose as permanent NWC any amount between the largest NWC and smallest NWC and take out the fixed rate loan for the amount at 4.15% and invest any unneeded funds in marketable securities at 2%. Calculate the all-in cost of the loan. The balance of the NWC not nance by the fixed rate loan is to be finance by the line of credit. a. Calculate the all-in cost of the strategy b. Calculate the average current ratio

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