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Worthington, Inc. is planning to issue $7,500,000 in 120-day maturity notes carrying a rate of 11 percent per year. Worthington’s commercial paper will be placed at a cost of $35,000. What is the effective cost of credit to Worthington?

300 word essay citing this 1 source:
Foundations of Finance, Eighth Edition, Keown, Martin, & Petty, Pearson (2014)

Standard essay format with introduction, body, and conclusion.

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