Question
QUESTION 15 Use the following information to answer Questions 15 - 18. Ralph, treasurer for Petrova Imports, recently updated his firm s short-term cash forecast
QUESTION 15
Use the following information to answer Questions 15 - 18.
Ralph, treasurer for Petrova Imports, recently updated his firm s short-term cash forecast only to discover that the firm will suffer a cash shortage of $15 million for a period of 30 days. Ralph just learned from one of his dealers that commercial paper in the 30-day maturity range is in demand and that discount rates are roughly 3.7%. The dealer's annual fee is 0.10% and the annual commitment fee on a backup line of credit is 0.25%. What is the amount of funds raised through the issuance?
| a. | $8,519,725 | |
| b. | $16,842,640 | |
| c. | $7,490,625 | |
| d. | $14,953,750 |
1 points
QUESTION 16
What is the dealer fee?
| a. | $1,250 | |
| b. | $1,525 | |
| c. | $1,317.85 | |
| d. | $1,406.25 |
1 points
QUESTION 17
What is the commitment fee?
| a. | $5,235 | |
| b. | $2,576.50 | |
| c. | $4,687.50 | |
| d. | $3,125 |
1 points
QUESTION 18
What is the effective cost?
| a. | 1.68% | |
| b. | 3.59% | |
| c. | 4.12% | |
| d. | 5.31% |
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Handbook Of Recent Advances In Commodity And Financial Modeling
Authors: Giorgio Consigli, Silvana Stefani, Giovanni Zambruno
1st Edition
3319613189, 978-3319613185
