A company raises Rs 10,00,000 by issuing CP for 120 days. It is sold at 10% discount. Stamp duty and other charges account for 2% of the value. Calculate the effective cost of CP. With current assets...

A company raises Rs 10,00,000 by issuing CP for 120 days. It is sold at 10% discount. Stamp duty and other charges account for 2% of the value. Calculate the effective cost of CP.

With current assets of Rs 5,000, current liabilities of Rs 1,000 and a borrower’s contribution of being Rs 1,250, find the amount of bank lending as per the second norm suggested by the Tandon Committee.