What would be the marginal benefit to the mining company if it could obtain a government loan

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What would be the marginal benefit to the mining company if it could obtain a government loan for $42 million at 8.4 percent that has a balloon payment for the full amount at the end of 10 years? Assume there are no flotation costs for this loan.

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Fundamentals of Corporate Finance

ISBN: 978-0071051606

8th Canadian Edition

Authors: Stephen A. Ross, Randolph W. Westerfield

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Question Posted: Jun 26, 2019 08:53 AM

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What would be the marginal benefit to the mining company if it could obtain a government loan

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In this case the annual interest after tax 42M x 0084 x 1040 21168M NPV of t...View the full answer

Fundamentals of Corporate Finance

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