Multiple Choice
The Native Industries,Inc.is going to issue 180-day commercial paper to raise $25 million.It anticipates a discounted interest rate of 13 percent,and dealer placement costs of approximately $60,000.What is the effective annual cost of credit to Native Industries?
A) 13.46%
B) 14.06%
C) 14.45%
D) 15.38%
Correct Answer:
Verified
Correct Answer:
Verified
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