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If your firm had $300,000, the going rate of interest on business loans was 12 percent and your firm's expected profit rate was 17 percent,
If your firm had $300,000, the going rate of interest on business loans was 12 percent and your firm's expected profit rate was 17 percent, what would you do with this money?
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Keep it in the bank.
Lend it to a competitor.
Use it to finance your own expansion.
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