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A firm plans on issuing an 8.5%, $100 million commercial paper. The maturity of the issue will be 54 days. The floatation cost will amount
- A firm plans on issuing an 8.5%, $100 million commercial paper. The maturity of the issue will be 54 days. The floatation cost will amount to % of the face value. What is the effective cost of raising these funds, assuming the investment banker will deduct its placement cost?
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