Which of the following is NOT a reason why banks are more willing to lend to some firms than to others?
A) Banks prefer to lend to firms with more stable cash flows.
B) Banks prefer to lend to firms with more physical as opposed to intellectual assets.
C) Banks prefer to lend to firms that remain in a specific geographical region.
D) All of the above are preferences for banks.
C
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Which department manages the process of converting or transforming resources into goods or services?
A. Finance B. Sales C. Operations management D. Accounting
The local elementary school has ________ open house every year in mid-September
A) its' B) there C) it's D) their E) its
Travel and Tow Trailers Inc. makes small trailers for light-duty towing behind SUVs and small pickup trucks
Its trailers typically sell for $2,500. Many of its customers have asked for credit terms to aid in purchasing the trailers. The firm's finance department has estimated the following profile for its light-duty trailers and customer base: Annual sales: 10,000 trailers Annual production costs per trailer: $1,500 Lost sales if credit is not provided for customers: 2,000 trailers Default rate if all customers purchase on credit: 3.00% What is the change in the profit if the firm moves from a cash-only policy to a credit policy? A) $1,250,000 B) $8,000,000 C) $9,250,000 D) $15,000,000
Jasper is looking to purchase a new home for $250,000. He is paying $50,000 as a down payment on the home and financing the remaining $200,000 with a loan secured by the home. He has the option of (1) paying no discount points on the loan and paying interest at 6.5 percent or (2) paying one discount point on the loan and paying interest of 5.5 percent on the loan. Both options require Jasper to make interest-only payments for the first five years of the loan and to pay the loan principal over the 25 years after that (it is a 30-year loan). Jasper itemizes deductions irrespective of any interest expense he may pay. Jasper's marginal ordinary income tax rate is 32 percent. What is Jasper's break-even point in years? (For simplicity, ignore time value of money concerns.)
What will be an ideal response?