Question
LMN Co. plans to enter into a secured term loan by assigning its receivables of $600,000 with an average maturity date of 30 days. The
| LMN Co. plans to enter into a secured term loan by assigning its receivables of $600,000 with an average maturity date of 30 days. The finance company will loan 75% of the receivables value at 11% interest plus a service fee of 0.05% of the total receivables pledged. What is the total cost of this financing arrangement? |
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Handbook Of Asset And Liability Management Volume 2
Authors: S. A. Zenios, W. T. Ziemba
1st Edition
0444528024, 978-0444528025
