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CNN Corporation Needs $750,000 and Plans to Borrow from Its

Question 155

Multiple Choice

CNN Corporation needs $750,000 and plans to borrow from its bank under the terms of its line-of-credit arrangement. These terms call for a minimum compensating balance of 12 percent. How much will CNN have to borrow to obtain the needed cash?


A) $750,000
B) $798,307
C) $840,000
D) $852,273

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