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Tupelo Juniors is a competitor of Memphis Metro (form problem #1). Suppose that tupelo Juniors borrows $400,000 form a $500,000 committed credit line, but Tupelo

Tupelo Juniors is a competitor of Memphis Metro (form problem #1). Suppose that tupelo Juniors borrows $400,000 form a $500,000 committed credit line, but Tupelo Juniors has an annual interst expense charge of $23,000 and a commitment fee of $1,000. Compare the effective cost of credit across these competing firm.

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