can you answer this?
1 . cost of trade credit
abcdef corporation purchase merchandise for $200,000, 2/10, n/30
required:1 . annual cost of trade credit
2 . trade annual cost of trade credit item is chaned to 1/15, n/20
2 . cost of bank loans
abcdef corp, was granted a $200,000 bank/loan with 12% stated interest.
Required: the effective annual rate, under the following caes
1 . abcdef recievs the entire amount of $200,000
2 . abcdef was granted a discounted loans
3 . abcdef is required to maintain a compensating balance of $10,000 under the non- discounted loan
4 . abcdef is required to maintain a compensating balane of 10% under a discounted loan.
3 . cost of commercial paper
abcdef corp plans to sell $100M 180 day maturity paper, which it expects to pay discounted interest at an annual rate of 12% per annum: due to this commercial paper, abcdef corp expects to incur $100,000 in dealer placement fees and paper insurance cost required: the effective cost of abcdef credit
4 . cost of factoring recievables:
abcdef corp. has $2M in recievable that carries 30 day crediter, 2% factors fee, life hold back reserve and an interest of 12% per amount on advantage.
required:1. cash proceeds from factoring abcdef corp. recievable
2. the effective annual financing cost of factoring the recievable.
The reason you haven't received any responses is because we are not here to DO your assignments FOR YOU.
You need to include what YOU THINK about each problem, and then someone who knows about this area of study will be more inclined to help you.