Frederic is an account manager at a large Canadian bank.Frederic has to decide if the bank will make a loan to Frost Corp,a snow removal company.Further,Frederic has to decide how much they will lend to Frost and at what rate.
Assuming that Frederic makes the loan,what factors will he use to decide the rate of interest? What factors are impacted by auditing and how?
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1.Risk free interest rate: The ...
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