Figure 5.4 shows that Microsofts five-year borrowing rate is 3.1% and Netflixs is 5.1%. Which would you

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Figure 5.4 shows that Microsoft’s five-year borrowing rate is 3.1% and Netflix’s is 5.1%. Which would you prefer: $500 from Microsoft paid today or a promise that the firm will pay you $600 in five years? Which would you choose if Netflix offered you the same alternative?

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Corporate Finance

ISBN: 9781292304151

5th Global Edition

Authors: Jonathan Berk, Peter DeMarzo

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