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Rapter Fencing 5.0000 ning period. The Establish a line of credit with the bank aan te rate of 6 percent payable adecor b. Forgo trade

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Rapter Fencing 5.0000 ning period. The Establish a line of credit with the bank aan te rate of 6 percent payable adecor b. Forgo trade discount suppliers on terms of 1,10 c Issue commercial paper for 60 days sold at a discounted price of percent of matury a. What would be the rate of interest for bank loan? (Urn 365 days in a year. Do not round Intermediate content answer to 2 decimal places.) Rate of interest for bank loan b. What would be the cost of forgoing the cash discount? (Use 365 days in a year. Do not found intermediate celeidom. Read the final answer to 2 decimal places.) Cost of forgoing the cash discount %6 c. What would be the cost of commercial paper? (Use 365 days in a year. Do not round Intermediate calculations. Round the final answer to 2 decimal places.) % Discounted commercial paper d. Which alternative should be selected? O Bank loan O Cost of forgoing discount O Commerical paper Rapler Fencing requires $750,000 in financing for a 60 day period. Three alteratives are being condered a. Establish a line of credit with the bank at an interest rate of 6 percent payable on a discounted bas b. Forgo trade discounts from suppliers on terms of 15/10, net 70. c.Issue commercial paper for 60 days sold at a discounted price of 98.8 percent of maturity value. o. What would be the rate of interest for bank loan? (Use 365 days in a year. Do not round Intermedinte calculation Pound the final answer to 2 decimal places.) Rate of Interest for bank loan 56 b. What would be the cost of forgoing the cash discount? (Use 365 days in a year. Do not round intermediate calculations. Round the final answer to 2 decimal places.) Cost of forgoing the cash discount c. What would be the cost of commercial paper? (Use 365 days in a year. Do not round intermediate calculations. Round the final answer to 2 decimal places.) 9 Discounted commercial paper d. Which alternative should be selected? O Bank loan O Cost of forgoing discount Commerical paper

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