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How much is the interest subsidy worth

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Reference no: EM132535134

Question - Your Company is planning to make an offer of $67 per share. You applied for low interest loans and will receive the followings:

a) 4-years loan of $4 million, zero interest

b) 28-years loan of $4 million, 4% interest,

While the normal borrowing rate is 6%. How much is the interest subsidy worth?

Reference no: EM132535134

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