Multiple Choice
If a firm purchases a cap at 10% this will:
A) limit the amount of borrowing to 10% of assets.
B) pay the firm 10% on their purchase.
C) pay the holder the LIBOR interest above 10%.
D) pay the holder the LIBOR interest below the 10%.
E) None of these.
Correct Answer:
Verified
Correct Answer:
Verified
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