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As financial Manager, your company is deciding to go for a loan from a bank valued at GHS 300,000,000

Finance

As financial Manager, your company is deciding to go for a loan from a bank valued at GHS 300,000,000. Your company records an annual income of GHS 99,500,000 and is able to provide collateral worth GHS 181,000,000. If the threshold acceptable for granting loans to corporate entities is half of total annual income, should your company be granted the loan? Prepare a repayment schedule for this loan contract for seven (7) years, using interest-only, straight line and reducing balance method assuming the loan is granted. Assume an interest rate of 15% per annum.

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