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QUESTION 56 Magnificent Shoe Corporation has been granted a $250 million bank loan with an interest rate of 3 month LIBOR plus 2% The loan
QUESTION 56 Magnificent Shoe Corporation has been granted a $250 million bank loan with an interest rate of 3 month LIBOR plus 2% The loan begins today (December 21) 3 month LIBOR today is 1%8f3-month LIBOR rises to 15% on March 21 2021 MSC's first payment of interest on that date will be approximately, in ignoring day counts) $8.750,000 $7,500,000 $2,875,000 0 $2,500,000 $2,187,500 $1875,000 $1,562,500 51,250,000 QUESTION 57 The higher a company's ratio of market value to brook value the greater the profits investors expect the company to produce in the future the higher the tax rate investors expect the IRS to impose in the future the more the losses investors expect the company to suffer in the future the more inventory inventors expect the company to accumulate in the future
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