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i believe its $9375. please check You are an analyst in the Treasury department of Bennett Inc., a multinational firm. You have been tasked with
i believe its $9375. please check
You are an analyst in the Treasury department of Bennett Inc., a multinational firm. You have been tasked with answering questions the Treasurer has regarding short-term investing and short-term borrowing. Below are numbers that your assistant has researched for you to answer these questions Discount rate on company's Commercial paper Discount rate on money market securities for investing Dealers annual fee percent on commercial paper Marginal tax rate Yield on Municipal bonds Short-term portfolio beginning of year value Short-term portfolio end of year value Line of Credit with the Bank interest Rate on bank lending Commitment Fee percentage on line of credit Compensating Balance percentage on line of credit 1.00% 3.00% 0.15% 3596 2.00% 250000.00 257000.00 350,000.00 0.50% 10% For the potential commercial paper issuance described above, what would be the dollar amount of the commitment fee? O a $4,687.50 O b.$3.723.75 Oc. $7,597 25 Od $1,406,25 QUESTION 13 The company is facing a cash crunch and may need to issue $7,500,000 in commercial paper with a maturity of 45 days at the discount rate for commercial paper and the dealer fees rate given in the data above. A backup line of credit is also required and can be obtained from the company's regular bank at the stated commitment fee percentage. What would the dollar discount amount be for this commercial paper issuance? O $14.500 Ob.5459 $9,375 Od: 31.40625 QUESTION 14 For the possible commercial paper issuance described in the previous question, what would be the amount of funds actually raised? O $7.500.000 57.325.000 OC 57.455.550 0.87 490.525 QUESTION 15 For the potential commercial paper issuance described above, what would be the dollar amourt of the commitment fee? O284.687.50 OD $3.723.75 02 $7.597.25 Oo $1,406 25 Step by Step Solution
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