Laurentide Resort Company Would Like to Issue $25 Million Face

question 48

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%

---

Definitions:

Solid waste management

The disciplined approach to managing refuse from household, industrial, and other sources to reduce its impact on health and environment.

United Nations Millennium Declaration

A resolution adopted by the United Nations in 2000, committing member nations to combat poverty, hunger, disease, illiteracy, environmental degradation, and discrimination against women by 2015.

Brundtland Commission Report

A landmark report published in 1987, formally named "Our Common Future," which introduced the concept of sustainable development, integrating environmental protection with economic growth.

Declaration of Alma Ata

An international declaration formulating a global goal of "Health for All" made at the International Conference on Primary Health Care in 1978.