ABC company signed a $200,000 noninterest-bearing note due in five years. Comparable borrowings have carried an 11%

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ABC company signed a $200,000 noninterest-bearing note due in five years. Comparable borrowings have carried an 11% interest rate.

What is the value of this debt at its inception (rounded to the nearest thousand)?

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Corporate Finance

ISBN: 978-0077861759

10th edition

Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe

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Posted Date: May 22, 2023 02:19 AM

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ABC company signed a $200,000 noninterest-bearing note due in five years. Comparable borrowings have carried an 11%

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SOLUTION Since the note is noninterestbearing we can assume ... View the full answer

Corporate Finance

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