Laurentide Resort Company Would Like to Issue $25 Million Face

question 70

Multiple Choice

Laurentide Resort Company would like to issue $25 million face value of 60-day commercial paper at a cost of 0.65%.In addition, the firm must maintain the $25 million credit line at a cost of 0.1% as a standby fee.What is the effective annual cost of this transaction?

• A)4.02%
• B)4.56%
• C)4.65%
• D)56.57%

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Definitions:

Agrarian-Base

Relating to or concerning the land, especially in terms of agricultural production.

Environmental Quality

The state or condition of the environment, including factors like air and water purity, noise levels, and the health of ecosystems.

Social Audit

A formal review of a company's endeavors, procedures, and code of conduct regarding social responsibility and its contribution to society's well-being.

Triple Bottom Line

A sustainability framework that measures a company's success based on three Ps: People, Planet, and Profit, highlighting the importance of social and environmental responsibility.