The Ohio Valley Steel Corporation has borrowed $5 million for one month at a stated annual rate

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The Ohio Valley Steel Corporation has borrowed $5 million for one month at a stated annual rate of 9%, using inventory stored in a field warehouse as collateral. The warehouser charges a

$5000 fee, payable at the end of the month. What is the effective annual rate of this loan?

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Corporate Finance

ISBN: 9780137845071

6th Edition

Authors: Jonathan Berk, Peter DeMarzo

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Question Posted: Jun 12, 2024 10:02 AM

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The Ohio Valley Steel Corporation has borrowed $5 million for one month at a stated annual rate

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Corporate Finance

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