What is the effective cost of credit to worthington what is, Financial Management

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What is the effective cost of credit to worthington what is

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? What is the net amount to Worthington?

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