Gemini Real Estate is offered a $2 million line of credit for four months at an APR of 9%. This loan has a loan origination fee of 1.5%. What is the actual four-month interest rate paid, expressed as an EAR?
A) 4.57%
B) 9.68%
C) 12.44%
D) 14.34%
Answer: D
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A number of assumptions about future events must be made regarding a defined benefit plan. Which of the following does not represent one of the assumptions?
a. Interest rates b. Termination date for the firm c. Employee turnover d. Mortality rates e. Compensation
Indirect order is usually the best arrangement of points for ______.
A. routine reports B. proposals C. informative reports D. good news
Outline the benefits to practicing issues management.
What will be an ideal response?
Assessments of how a diversified company's subsidiaries compare in competitive strength should be based on such factors as __________.
A) vulnerability to seasonal and cyclical downturns, vulnerability to driving forces, and vulnerability to fluctuating interest rates and exchange rates. B) relative market share, ability to match or beat rivals on key product attributes, brand image and reputation, costs relative to competitors, and ability to benefit from strategic fits with sister businesses. C) the appeal of its strategy, relative number of competitive capabilities, the number of products in each businesses product line, which businesses have the highest/lowest market shares, and which businesses earn the highest/lowest profits before taxes. D) the ability to hurdle barriers to entry, value chain attractiveness, and business risk. E) cost reduction potential, customer satisfaction potential, and comparisons of annual cash flows from operations.