Floating-rate debt is advantageous to investors because the interest rate moves up if market rates rise. Since floating-rate debt shifts interest rate risk to companies, it offers no advantages to issuers.
Answer the following statement true (T) or false (F)
False
Rationale: Floating rates can benefit issuers if rates decline, so a company that thinks rates are likely to fall would want to issue such bonds.
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If the expected inflation rate is 4 percent, the nominal interest rate is 6 percent, and the actual inflation rate turns out to be 2 percent, then the realized real interest rate is ____ than the expected real interest rate and borrowers ____ relative to lenders.
A. less; gain B. less; lose C. greater; gain D. greater; lose
As the salesperson entered the prospect's office, the salesperson extended his hand and said, "Your old college roommate, Tiara Johns, suggested I call on you." This action occurred in which stage of the personal selling process?
A) approach B) prospecting C) preapproach D) close the sale E) follow-up
The method of reporting preferred by U.S. GAAP is/are
a. the direct method. b. the indirect method. c. both the direct method and the indirect method. d. the schedule of cash receipts and cash disbursements. e. the funds flow statement.
The operating lease method classifies all of the lease payment each period as _____
a. an investment use of cash on the statement of cash flows. b. an operating use of cash on the statement of cash flows. c. a financing use of cash on the statement of cash flows. d. a cash expenditure. e. none of the above