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    Foundations of Financial Management Study Set 1
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    Exam 8: Sources of Short-Term Financing
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    When Calculating a Loan with a 20% Compensating Balance a Firm
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When Calculating a Loan with a 20% Compensating Balance a Firm

Question 18

Question 18

Multiple Choice

When calculating a loan with a 20% compensating balance a firm would borrow ____ in order to have available funds of $200,000.


A) $160,000
B) $200,000
C) $250,000
D) $260,000

Correct Answer:

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