Which proposed rate offers the most attractive return

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Reference no: EM132070459

1. Calculate the EAR for the following stated interest rates and determine which proposed rate offers the most attractive return.

a. 12% compounded monthly

b. 12.5% compounded quarterly

c. 13% compounded semianually

d. 13.25% compounded annually

2. Which of these events reduces cash holdings?

A) The firm sells a parcel of land at a loss.

B) The firm sells a parcel of land at a profit.

C) The firm changes its terms of sale and gives customers less time to pay for their purchases.

D) The firm pays more promptly for its raw materials.

Reference no: EM132070459

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