The Colonial Window Treatments Company is borrowing $1.5 million. The loan requires a 10 percent compensating balance,

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The Colonial Window Treatments Company is borrowing $1.5 million. The loan requires a 10 percent compensating balance, and the effective interest rate on the loan is 9.75 percent. What is the stated APR on this loan?

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Fundamentals of corporate finance

ISBN: 978-0470876442

2nd Edition

Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates

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Question Posted: Jun 12, 2012 01:11 AM

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The Colonial Window Treatments Company is borrowing $1.5 million. The loan requires a 10 percent compensating balance,

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Fundamentals of corporate finance

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