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Consider the following borrowing costs faced by the following 3 companies: Fixed rate Floating rate Company A 7.0% LIBOR + 0.1% Company B 6.5% LIBOR

Consider the following borrowing costs faced by the following 3 companies:

Fixed rate

Floating rate

Company A

7.0%

LIBOR + 0.1%

Company B

6.5%

LIBOR

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