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Exam F3 All Questions
Exam F3 All Questions

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CIMA Strategic F3 Question # 73 Topic 8 Discussion

F3 Exam Topic 8 Question 73 Discussion:
Question #: 73
Topic #: 8

A large, listed company in the food and household goods industry needs to raise $50 million for a period of up to 6 months.

It has an excellent credit rating and there is almost no risk of the company defaulting on the borrowings. The company already has a commercial paper programme in place and has a good relationship with its bank.

 

Which of the following is likely to be the most cost effective method of borrowing the money?


A.

Bank overdraft


B.

6 month term loan


C.

Treasury Bills


D.

Commercial paper


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