Question
A firm wants to borrow $900,000 million to buy an asset whose current value is $916,870 million. The firm wants to take out the loan
A firm wants to borrow $900,000 million to buy an asset whose current value is $916,870 million. The firm wants to take out the loan for 2 years.
The volatility of the asset's value is 35.00%. The risk free rate of interest is 2.70%.
The dollar value of this loan to the bank is?
multiple choice 1
- $710,016
- $816,518
- $692,328
- $639,014
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Fundamentals of Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
13th edition
978-1285027371, 128502737X, 978-1133541141
