33. A firm borrows $20,000 at 10 percent. What is the effective rate of interest if the principal and its interest are paid at maturity?

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32. A firm borrows $20,000 at 12 percent. What is the effective rate of interest if the loan is discounted?

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34. What is the effective interest rate on a $10,000 loan at 12 percent interest rate if the bank requires a 20-percent compensating balance and a payment of the interest at maturity?

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35. What is the effective interest rate on a $10,000 loan at 12 percent interest rate if the bank requires a 20-percent compensating balance and an advance payment of the interest?

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27. A firm just paid a dividend of $1.2. Based on your assessment of the riskiness of the common stock, you feel it should pay a return of 20 percent. If the firm's dividends are expected to have a long-term growth rate of 4 percent, what is the market value of the stock?

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36. A US company borrows Swiss francs for one year at 8 percent. The Swiss franc is expected to depreciate by 6 percent against the dollar for one year. What is the effective interest rate of the loan in US dollar terms?

asked 12 years ago in Economics by anonymous