To sustain its growth in sales, Monarch Machine Tools Company needs $100,000 in additional funds next year. The following alternatives for financing the growth are available: a. Forgoing a discount available on trade credit with terms of 1/10, n45 and, hence, increasing its accounts payable b. Obtaining a loan from a bank at 10 percent interest paid up front Calculate the cost of financing for each option and select the best source. If the bank imposes an additional requirement of a 12 percent compensating balance on Monarch in problem 20-15 and the company could negotiate more-liberal credit terms of 1/15, n60 from its supplier, would there be any change in Monarch's choice of short-term financing? Stacy Lovell has just finished her company's pro forma financial statements and has concluded that $1.5 million in additional funds are needed. To cover this cash shortage, her company is going to lake out a loan. HomeLand Bank has offered them a 9 percent discount interest loan with a 12 percent compensating balance. How much does Ms. Lovell's company need to borrow with these stated terms to leave the bank with $1.5 million in usable funds