A large firm received a loan guarantee from the government. Due to the guarantee, the firm can
Fantastic news! We've Found the answer you've been seeking!
Question:
A large firm received a loan guarantee from the government. Due to the guarantee, the firm can borrow $77 million for 8 years at 4.5% interest rate per year instead of 8.0% per year. Interest payments are made at the end of each year, and principal is repaid at the maturity of the loan. Calculate the value of the guarantee to the firm. (Ignore taxes.)
Enter your answer in millions of dollars rounded to the second decimal place. For example, enter $12,345,000 as 12.35.
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date: