1.A manager decides not to lend to any firm in sectors that generate losses in excess of...

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1.A manager decides not to lend to any firm in sectors that generate losses in excess of 5 per cent of equity.

If the average historical losses in the car sector total 8 per cent, what is the maximum loan a manager can lend to a firm in this sector as a percentage of total capital?

If the average historical losses in the mining sector total 15 per cent, what is the maximum loan a manager can make to a firm in this sector as a percentage of total capital? LO 11.1

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Financial Institutions Management A Risk Management

ISBN: 9781743073551

4th Edition

Authors: Helen Lange, Anthony Saunders, Marcia Millon Cornett

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