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A bank is establishing a loan where: internal transfer price of non-capital funds with the same maturity as the loan being financed is 6.5%
A bank is establishing a loan where:
internal transfer price of non-capital funds with the same maturity as the loan being financed is 6.5%
the loan is to be financed with 15% equity
the target before tax return on equity is 16%
the bank holds liquid assets equal to 10% of non-capital funds
liquids earn, on average, 5%.
What is the percentage net cost of funds?
internal transfer price of non-capital funds with the same maturity as the loan being financed is 6.5%
the loan is to be financed with 15% equity
the target before tax return on equity is 16%
the bank holds liquid assets equal to 10% of non-capital funds
liquids earn, on average, 5%.
What is the percentage net cost of funds?
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
