-Under what circumstances would it be advisable to borrow money to take a cash discount?
-How have new banking laws influenced competition?
-What does LIBOR mean? Is LIBOR normally higher or lower than the U.S. prime interest rate?
-Commercial paper may show up on corporate balance sheets as either a current asset or a current liability. Explain this statement.
-Simmons Corp. can borrow from its bank at 12 percent to take a cash discount. The terms of the cash discount are 1.5/10, net 60. Should the firm borrow the funds?
-Mary Ott is going to borrow $5,000 for 90 days and pay $140 interest. What is the effective rate of interest if the loan is discounted?