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 | okay so for example a cororation to is to spend $1 million immediately; after taxes they might be expected to return profits of $200,000 per year. | |
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| So the yearly rate of return is? | |
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| Financing decision is based on the single criterion of selecting a financing arrangement that will minimize cost. | |
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| and..similar to assest-investment decions, financing costs are expressed in terms of a yearly rate. | |
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