Cowley corporation has a 100000 line of credit that, Ask an Expert

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Cowley Corporation has a $100,000 line of credit that requires it to keep 10% of it as compensating balance, and also pay a 1% commitment fee. The interest on the line of credit is fixed at 12%. Cowley draws only $85,000 in cash from this line. Find the cost of the credit.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92063553

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