Whatchamacallit Sports (B). Whatchamacallit could also buy export credit insurance from FCIA for a 1.5% premium. It

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Whatchamacallit Sports (B). Whatchamacallit could also buy export credit insurance from FCIA for a 1.5%

premium. It finances the $100,000 receivable from Phang from its credit line at 6% per annum interest.

No compensating bank balance would be required.

a. What is Whatchamacallit’s annualized percentage all-in cost of financing?

b. What are Phang’s costs?

c. What are the advantages and disadvantages of this alternative compared to the bankers’ acceptance financing in Problem 16.9? Which alternative would you recommend?

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Multinational Business Finance

ISBN: 9781292270081

15th Global Edition

Authors: David Eiteman, Arthur Stonehill, Michael Moffett

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Question Posted: Jun 04, 2024 02:18 AM

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Whatchamacallit Sports (B). Whatchamacallit could also buy export credit insurance from FCIA for a 1.5% premium. It

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Multinational Business Finance

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