Use the Following Information to Answer the Question(s)below

question 36

Multiple Choice

Use the following information to answer the question(s) below.
Taggart Transcontinental needs a $100,000 loan for the next 30 days.Taggart has three alternatives available:
Alternative #1: Forgo the discount on its trade credit agreement that offers terms of 2/5 net 35.
Alternative #2: Borrow the money from Bank A,which has offered to lend the firm $100,000 for one month at
an APR of 9%.The bank will require a (no-interest) compensating balance of 10% of the face-value of the loan and will charge a $200 loan origination fee,which means that Taggart must borrow even more than the $100,000 they need.
Alternative #3: Borrow the money from Bank B,which has offered to lend the firm $100,000 for one month at an APR of 12%.The loan has a 1% origination fee.
-The effective annual rate for Taggart if they choose alternative #3 is closest to:

• A)13.9%.
• B)18.8%.
• C)27.0%.
• D)27.9%.

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Definitions:

Transformational Factors

Elements or influences that lead to significant changes or transformations within an individual, group, or organization, often associated with improvement and development.

Bennis And Nanus

Refers to two influential figures in the field of leadership studies, Warren Bennis and Burt Nanus, known for their contributions to leadership theory and practice.

Laissez-Faire

A leadership style characterized by a hands-off approach, allowing individuals to make their own decisions and solve problems independently.

Transformational Perspective

A leadership approach that focuses on inspiring and motivating followers to exceed their own self-interests for the good of the group or organization.