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7) Tupelo Juniors Corporation is facing a cash crunch and needs to issue $7,500,000 in commercial paper with a maturity of 45 days at a

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7) Tupelo Juniors Corporation is facing a cash crunch and needs to issue $7,500,000 in commercial paper with a maturity of 45 days at a discount rate of 1%. The dealer fees on the issuance are .15%. The firm had to open a new committed line of credit to back up its commercial paper and has to pay its bank a commitment fee of.5%. A. Calculate the amount of funds raised through the issuance B. Calculate the dealer fee C. Calculate the commitment fee D. Calculate the effective cost of this issuance of commercial paper

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