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14ト 10y. 1. A firm requires $ 0.5 million in financing for a 60-day period. Three alternatives are being considered. Which alternative should be selected? o( a. Establish a line of credit with the bank at an interest rate of 14 percent. The bank will require a 10 percent compensating balance. b. Forgo trade discounts from suppliers on terms of 3/10, net 70. c. Issue commercial paper for 60 days at a 500,000 K 26S ) discount of 2.65 percent. 3250 X
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