4. Sun Microsystems (A). Assume Sun Microsystems has sold Internet servers to Telecom Italia for 700,000. Payment
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4. Sun Microsystems (A). Assume Sun Microsystems has sold Internet servers to Telecom Italia for 700,000. Payment is due in three months and will be made with a trade acceptance from Telecom Italia Acceptance. The acceptance fee is 1.0% per annum of the face amount of the note. This acceptance will be sold at a 4% per annum discount. What is the annualized percentage all-in-cost in euros of this method of trade financing?
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Fundamentals Of Multinational Finance
ISBN: 9780321541642
3rd Edition
Authors: Michael H. Moffett, Arthur I. Stonehill, David K. Eiteman
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