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28. If a firm borrows $50M from a commercial bank with interest rate 10%. But the bank requires the firm to put 10% of the
28. If a firm borrows $50M from a commercial bank with interest rate 10%. But the bank requires the firm to put 10% of the total borrowings in the bank as a compensating balance. Whats the real cost of the debt?
|
| 8.8% |
|
| 10.5% |
|
| 11.1% |
|
| 12.3% |
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