39 Teddy Toys Ltd is examining its mix of short-term and longterm finance. The relative costs of...

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39 Teddy Toys Ltd is examining its mix of short-term and longterm finance. The relative costs of each are as follows:

a Calculate the total annual financing cost for the firm, given the current financing mix.

b Calculate the revised annual finance cost for the firm assuming that:

i $4 000 of short-term funds were converted to long-term ii $4 000 of short-term funds were converted to long-term

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Fundamentals Of Finance

ISBN: 9780994132529

4th Edition

Authors: Andrea Bennett, Jenny Parry, Carolyn Wirth

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