Frich Corporation is considering the use a field warehousing loan, which has a fee of $25,000 up
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Frich Corporation is considering the use a field warehousing loan, which has a fee of $25,000 up front (that is, at the beginning of the three months of financing) and interest of 8% on all outstanding loans. If Armour borrows $2 million for one month with this field warehousing loan, what is the cost of financing for one month?
What is the effective annual cost of using this financing?
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Related Book For 
Financial Management And Analysis (Frank J. Fabozzi Series)
ISBN: 9780471477617
2nd Edition
Authors: Frank J. Fabozzi, Pamela P. Peterson
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