A firm's cost of debt often differs from the yield reported on its bonds because
A) the firm's cost of debt is unknown when the bonds are first sold.
B) the underwriting costs for new bond issues are not tax deductible, raising the cost of debt relative to bond yields.
C) the cost of debt changes infrequently since bond rating agencies do not change their recommendations often.
D) the interest paid on corporate bonds is tax deductible.
E) speculators can drive the cost of debt down so that bond yields exceed it.
D
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Which of the following is the lowest level of needs on Maslow's hierarchy of needs?
A) social needs B) ego needs C) physiological needs D) self-actualization needs E) belongingness needs
Answer the following statements true (T) or false (F)
1) Performance evaluation systems provide top management with a framework for maintaining control over the entire organization. 2. Communicating top management's expectations to segment managers improves goal congruence. 3. The practice of comparing a company's achievements against the best practices in the industry is known as goal congruence. 4. In decentralized companies, performance evaluation systems provide upper management with the feedback it needs to maintain control over the entire organization. 5. Goal congruence is the practice of comparing the company's achievements against the best practices in the industry.
The money market hedge is less flexible because money market vehicles are somewhat thin in many currencies.
Answer the following statement true (T) or false (F)
In a construction contract, there is a $1000 per day estimate of damages for each day that the contract runs over the completion date. The contractor is 30 days late when the job is completed, resulting in a prospective damage award of $30,000. What is this type of clause, and when will it be enforced?