can you answer this?

Question

1 . cost of trade credit
abcdef corporation purchase merchandise for $200,000, 2/10, n/30
required:1 . annual cost of trade credit
2 . trade annual cost of trade credit item is chaned to 1/15, n/20

2 . cost of bank loans
abcdef corp, was granted a $200,000 bank/loan with 12% stated interest.
Required: the effective annual rate, under the following caes
1 . abcdef recievs the entire amount of $200,000
2 . abcdef was granted a discounted loans
3 . abcdef is required to maintain a compensating balance of $10,000 under the non- discounted loan
4 . abcdef is required to maintain a compensating balane of 10% under a discounted loan.

3 . cost of commercial paper
abcdef corp plans to sell $100M 180 day maturity paper, which it expects to pay discounted interest at an annual rate of 12% per annum: due to this commercial paper, abcdef corp expects to incur $100,000 in dealer placement fees and paper insurance cost required: the effective cost of abcdef credit

4 . cost of factoring recievables:
abcdef corp. has $2M in recievable that carries 30 day crediter, 2% factors fee, life hold back reserve and an interest of 12% per amount on advantage.
required:1. cash proceeds from factoring abcdef corp. recievable
2. the effective annual financing cost of factoring the recievable.

Answer 1

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