What is the name for a person who lends funds to a business entity and expects repayment with interest?
A. creditor
B. owner
C. proprietor
D. stockholder
Answer: A
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In terms of ethical frameworks for reasoning, making decisions based on what is the greatest good for the greatest number of people is:
A) utilitarianism B) individualism C) the justice approach D) the rights approach
What problem did FedEx solve for customers in its CVP?
a. the lack of easy, door-to-door, overnight delivery of packages b. the lack of customer signatures of received goods c. the lack of alternatives to the USPS d. the lack of prepackaged envelopes or-to-door, overnight delivery of packages
Which of the segmentation attractiveness criteria is assumed by the statement, "Build it, and they will come"?
What will be an ideal response?
NorthWest Water (NWW) Five years ago, NorthWest Water (NWW) issued $50,000,000 face value of 30-year bonds carrying a 14% (annual payment) coupon. NWW is now considering refunding these bonds. It has been amortizing $3 million of flotation costs on these bonds over their 30-year life. The company could sell a new issue of 25-year bonds at an annual interest rate of 11.67% in today's market. A call premium of 14% would be required to retire the old bonds, and flotation costs on the new issue would amount to $3 million. NWW's marginal tax rate is 40%. The new bonds would be issued when the old bonds are called. Refer to the data for NorthWest Water (NWW). What will the after-tax annual interest savings for NWW be if the refunding takes place?
A. $664,050 B. $699,000 C. $768,900 D. $845,790 E. $930,369