In the previous problem, what long-term interest rate would represent a break-even point between using short term
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In the previous problem, what long-term interest rate would represent a break-even point between using short term financing as described in part a and long-term financing? Divide the interest payments in Problem 8. a by the amount of total funds provided for the six months and multiply by 12.
Previous problem
Liz's Health Food Store has estimated monthly financing requirements for the next six months as follows:
Short-term financing will be utilized for the next six months. Projected annual interest rates are:
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Related Book For 
Foundations of Financial Management
ISBN: 978-1259024979
10th Canadian edition
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
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