Suppose that one of the inducements provided by Thailand to woo Scandisk into setting up a local
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Suppose that one of the inducements provided by Thailand to woo Scandisk into setting up a local production facility is a 10-year, $10 million loan at 3% interest. The principal is to be repaid at the end of the tenth year. The market interest rate on such a loan is about 6%. With a marginal tax rate of 21%, how much is this loan worth to Scandisk?
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Multinational Financial Management
ISBN: 9781119559900
11th Edition
Authors: Alan C Shapiro, Paul Hanouna
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