The National Co. has a revolving line of credit of P300,000 with a one-year maturity. The terms call for 7% interest rate and a 1/2 percent commitment fee on the unused portion of the credit line. The average loan balance during the year was P100,000. The annual cost of this financing arrangement is * A Format: 1,111

The National Co. has a revolving line of credit of P300,000 with a one-year maturity. The terms call for 7% interest rate and a 1/2 percent commitment fee on the unused portion of the credit line. The average loan balance during the year was P100,000. The annual cost of this financing arrangement is * A Format: 1,111

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter16: Working Capital Policy And Short-term Financing

Section: Chapter Questions

Problem 34P

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