Which of the following statements is generally NOT true?
A) A firm should attempt to match the nature of a project with the duration of the financing it needs.
B) Short-term debt usually carries lower interest rates than long-term debt with comparable default risk.
C) Issuing variable rate debt increases financial uncertainty relative to issuing fixed-rate debt.
D) All of the above statements are true.
D
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In which of the following does a customer respond to the technical quality of a service?
A) Sara's preferred hair stylist is some miles away, but Sara goes to him because his styles suit her looks. B) Kathy tries out a new restaurant every week, because she likes to experience the variety. C) Bill has gone to the same chiropractor for the past fifteen years, because he is friendly and takes the time to listen to Bill. D) Ray avoids going to the bank as far as possible because the manager is rude and unhelpful. E) Alex has no interest in theater, but goes often because her best friend loves plays.
A company with $50,000 in current assets, $25,000 in quick assets, and $30,000 in current liabilities makes a payment of a $1,500 current debt. As a result of this transaction, the current ratio and quick ratio will
a. both decrease. b. increase and decrease, respectively. c. both increase. d. remain the same and decrease, respectively.
One way to test how a management science model reacts to changes in its parameters is to conduct ________ analysis
Fill in the blank with correct word.
Florence borrows $1,500 from Fremont, leaving her gold necklace with Fremont as collateral. Two weeks earlier, Florence had borrowed $1,000 from Corner Bank. Florence signed a security agreement and a financing statement giving Corner Bank a security interest in the same gold necklace. The financing statement is filed in the appropriate location. If Florence defaults on both loans, which creditor
has the superior rights to the necklace? a. Fremont, because his loan was the first to attach. b. Fremont, because possession takes priority over filing. c. Corner Bank, because Fremont did not perfect his interest. d. Corner Bank, because Fremont did not have a written security agreement.