Tangshan Mining borrowed $100,000 for one year under a revolving credit agreement that authorized and guaranteed the firm access to $200,000. The revolving credit agreement had a stated interest rate of 7.5 percent and charged the firm a 1 percent commitment fee on the unused portion of the agreement. Based on this information, the effective annual interest rate on the loan is ________.
A) 7.5%
B) 8.0%
C) 8.5%
D) 9.0%
C) 8.5%
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Later studies of LMX found all of the following except ______.
A. positive relationship between quality of LMX and citizenship behaviors B. high-quality LMX was positively related to employee feelings of energy C. interest in studying LMX has diminished D. high LMX correlates to positive organizational outcomes
Wisconsin Farm Equipment Company sold equipment for cash. The income statement shows a loss on the sale of $7000. The net book value of the asset was $28,900. Which of the following statements describes the cash effect of the transaction?
A) positive cash flow of $35,900 from financing activities B) negative cash flow of $21,900 for operating activities C) negative cash flow of $21,900 for financing activities D) positive cash flow of $21,900 from investing activities
A department store's product assortment is wider but less deep than a specialty store's
Indicate whether the statement is true or false
Which of the following measures of performance encourages continued expansion by an investment center so long as it is able to earn a return in excess of the minimum required return on average operating assets?
A. transfer pricing B. the contribution approach C. residual income D. return on investment