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A large firm received a loan guarantee from the government. Due to the guarantee, the firm can borrow $85 million for five years at 10
A large firm received a loan guarantee from the government. Due to the guarantee, the firm can borrow $85 million for five years at 10 percent interest ate per year instead of 12 percent per year. Calculate the value of the guarantee to the firm. (Ignore taxes.) Multiple Choice +\$91.13 million $6.13 million $6.33 million +$6.13 million Step by Step Solution
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The Bank Credit Analysis Handbook
Authors: Jonathan Golin, Philippe Delhaise
2nd Edition
0470821574, 978-0470821572
