The Native Industries,Inc

question 38

Multiple Choice

The Native Industries,Inc.is going to issue 180-day commercial paper to raise $25 million.It anticipates a discounted interest rate of 13 percent,and dealer placement costs of approximately $60,000.What is the effective annual cost of credit to Native Industries?

• A) 13.46%
• B) 14.06%
• C) 14.45%
• D) 15.38%

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Definitions:

External Oblique

A muscle in the abdomen that helps rotate the trunk and flex the vertebral column.

Scapula

The flat, triangular bone located in the upper back, commonly known as the shoulder blade.

Rhomboid Major

A skeletal muscle located in the upper back that connects the spine to the shoulder blade, aiding in retraction of the scapula.

Teres Minor

A small muscle of the rotator cuff that assists in the rotation and stabilization of the shoulder joint.