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Marlin and Dory decide to start Message in a Bottle marketing business. Marlin cashes in a $15,000 savings deposit that was paying 6% interest per year. Dory sells a $20,000 bond that was paying 10% interest per year. They also borrow $30,000 from RBC Bank at 15% per year. What are the yearly implicit costs of financing the Message in a Bottle business? Select one: A. $7,400 B. $34,500 C. $2,900 D. $37,900 E. $72,400

Marlin and Dory decide to start Message in a Bottle marketing business. Marlin cashes in a $15,000 savings deposit that was paying 6% interest per year. Dory sells a $20,000 bond that was paying 10% interest per year. They also borrow $30,000 from RBC Bank at 15% per year. What are the yearly implicit costs of financing the Message in a Bottle business? Select one: A. $7,400 B. $34,500 C. $2,900 D. $37,900 E. $72,400

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Marlin and Dory decide to start Message in a Bottle marketing business. Marlin cashes in a $15,000 savings deposit that was paying 6% interest per year. Dory sells a $20,000 bond that was paying 10% interest per year. They also borrow $30,000 from RBC Bank at 15% per year. What are the yearly implicit costs of financing the Message in a Bottle business? Select one: A. $7,400 B. $34,500 C. $2,900 D. $37,900 E. $72,400
Transcribed Image Text:Marlin and Dory decide to start Message in a Bottle marketing business. Marlin cashes in a $15,000 savings deposit that was paying 6% interest per year. Dory sells a $20,000 bond that was paying 10% interest per year. They also borrow $30,000 from RBC Bank at 15% per year. What are the yearly implicit costs of financing the Message in a Bottle business? Select one: A. $7,400 B. $34,500 C. $2,900 D. $37,900 E. $72,400
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