Question
2- A company needs to increase its working capital to 18999$ , the Chief Financial Officer (CFO) decide to issue a commercial paper at a
2- A company needs to increase its working capital to 18999$ , the Chief Financial Officer (CFO) decide to issue a commercial paper at a discount interest rate of 6 %. Note that the sale of this papers costing the company $2,000 / 6 months.
a- Find the Face Value of Commercial Papers to collect 18999$. FV1 = ?
b- Find the effective interest rate of this type of financing. EIR1= ?
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Financial Accounting
Authors: John Stittle, Robert Wearing
1st Edition
1412935024, 9781412935029
