subject
Business, 18.10.2019 06:10 4Tris

Which of the following best explains why a firm that needs to borrow money would borrow at long-term rates when short-terms rates are lower than long-term rates? the use of short-term financing over long-term financing for a long-term project will increase the risk of the firm. the firm’s interest payments will be the same whether it uses short-term or long-term financing, so it is essentially indifferent to which type of financing it uses. a firm will only borrow at short-term rates when the yield curve is downward-sloping.

ansver
Answers: 2

Another question on Business

question
Business, 22.06.2019 07:40
Shelby company produces three products: product x, product y, and product z. data concerning the three products follow (per unit): product x product y product z selling price $ 85 $ 65 $ 75 variable expenses: direct materials 25.50 19.50 5.25 labor and overhead 25.50 29.25 47.25 total variable expenses 51.00 48.75 52.50 contribution margin $ 34.00 $ 16.25 $ 22.50 contribution margin ratio 40 % 25 % 30 % demand for the company’s products is very strong, with far more orders each month than the company can produce with the available raw materials. the same material is used in each product. the material costs $8 per pound, with a maximum of 4,400 pounds available each month. required: a. compute contribution margin per pound of materials used. (round your intermediate calculations and final answers to 2 decimal places.) contribution margin per pound product x $ product y $ product z $ b. which orders would you advise the company to accept first, those for product x, for product y, or for product z? which orders second? third? product x product y product z
Answers: 3
question
Business, 22.06.2019 20:00
Qwest airlines has implemented a program to recycle all plastic drink cups used on their aircraft. their goal is to generate $7 million by the end of the recycle program's five-year life. each recycled cup can be sold for $0.005 (1/2 cent). a. how many cups must be recycled annually to meet this goal? assume uniform annual plastic cup usage and a 0% interest rate. b. repeat part (a) when the annual interest rate is 12%. c. why is the answer to part (b) less than the answer to part (a)?
Answers: 1
question
Business, 23.06.2019 08:30
In the supply-and-demand schedule shown above, the equilibrium price for cell phones is $25 $100 $200
Answers: 2
question
Business, 23.06.2019 08:50
Walking through the grocery store, ramon sees a "buy 2, get 1 free" deal on laundry detergent. even though he currently has plenty of detergent he decides to take home all three bottles. ramon's decision seems to have been based mostly on his immediate need for the detergent the low price of alternative brands the limited income he presently earns the sale price offered for the detergent
Answers: 1
You know the right answer?
Which of the following best explains why a firm that needs to borrow money would borrow at long-term...
Questions
question
Mathematics, 20.03.2020 22:02
question
Mathematics, 20.03.2020 22:04
question
Mathematics, 20.03.2020 22:04