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problem: Walters Manufacturing corporation has been approached by commercial paper dealer offering to sell an issue of commercial paper for the company. The dealer indicates that Walters could sell a 5 million dollar issue maturing in 182 days at an interest rate of 6 percent per year [reduced in advance]. The fees to dealer for selling the issue would be $8,000. find out Walter’s yearly financing cost of this commercial paper financing.

Cost Accounting, Accounting

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