Multiple Choice
Scenario 13-5
Suppose that Emily opens a restaurant. She receives a loan from a bank for $200,000. She withdraws $100,000 from her personal savings account. The interest rate on the loan is 6%, and the interest rate on her savings account is 2%.
-Refer to Scenario 13-5. Emily's annual explicit cost of capital is
A) $2,000.
B) $4,000.
C) $12,000.
D) $14,000.
Correct Answer:
Verified
Correct Answer:
Verified
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