International Financial Management (mindtap Course List)
14th Edition
ISBN: 9780357130544
Author: Jeff Madura
Publisher: Cengage Learning
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Sola sa is a British company specialized in water supplies. It has a big activity, and wishes to reduce its risks. It operates in a challenging environment, and subject to fluctuations in prices on financial markets. It imports some raw materials from China, and sells to France and other European countries. Its Financial manager gives you the followings :
Loans borrowed : GBP 100,000 at 5%
Loans to employees : GBP 75,000 at 3%
Money at bank: GBP 450,000 at 2%
Calculate the net interest margin for Sola?
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