Unformatted text preview: Wisconsin Distillers exports beer to Australia and invoices its customers in U.S. dollars. Sydney Wholesale Imports has purchased $1,000,000 of beer from Wisconsin Distillers, with payment due in 6 months. The payment will be made with a bankers’ acceptance issued by Charter Bank of Sydney at a fee of 1.75% per annum. Wisconsin Distillers has a weighted average cost of capital of 10%. If Wisconsin Distillers holds this acceptance to maturity. What is its annualized percentage all-in-cost?...
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This note was uploaded on 07/27/2011 for the course ECON 101 taught by Professor Dr. during the Spring '11 term at Columbia Union.
- Spring '11