BRCC is evaluating an option for funding its working capital during the next year. The company plans to issue 180-day commercial paper which has an annual interest rate of 8.8% and requires BRCC to pay a transaction fee equal to 0.25%. If BRCC actually needs $225,000 to finance working capital during the next year, how much must BRCC borrow so that it has $
BRCC is evaluating an option for funding its working capital during the next year. The company plans to issue 180-day commercial paper which has an annual interest rate of 8.8% and requires BRCC to pay a transaction fee equal to 0.25%. If BRCC actually needs $225,000 to finance working capital during the next year, how much must BRCC borrow so that it has $
Chapter16: Working Capital Policy And Short-term Financing
Section: Chapter Questions
Problem 22P
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BRCC is evaluating an option for funding its working capital during the next year. The company plans to issue 180-day commercial paper which has an annual interest rate of 8.8% and requires BRCC to pay a transaction fee equal to 0.25%. If BRCC actually needs $225,000 to finance working capital during the next year, how much must BRCC borrow so that it has $225,000 avaliable to pay bills?
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