The treasurer of a corporation is negotiating with one of his/her suppliers to allow the corporation to have 30 days to pay the supplier’s invoices. The treasurer is arranging:
Answer(s): A
A company is looking for a way to finance their inventory. What is the BEST funding match?
Answer(s): B
A company has negotiated a credit facility with the following terms:• $5,000,000 line of credit• $3,000,000 average borrowing• 30 basis point commitment fee on the unused portion of the line• Interest rate on advances is 1-month LIBOR plus 4%• 1-month LIBOR is currently 2%What is the annual interest rate on the line of credit?
A company has negotiated a credit facility with the following terms:• $5,000,000 line of credit• $3,000,000 average borrowing• 30 basis point commitment fee on unused portion of line• Interest rate on advances is 1-month LIBOR plus 4%• 1-month LIBOR is currently 2%• Compensating balance requirement of 20% on the outstanding borrowingsWhat is the effective annual borrowing rate for the line of credit?
Answer(s): C
Which of the following statements is typically true about a net settlement system?
Post your Comments and Discuss AFP CTP exam prep with other Community members: