A firm will borrow long-term
A. if the extra interest cost of borrowing long-term is less than the expected cost of rising interest rates before it retires its debt.
B. if the extra interest cost of borrowing short-term due to rising interest rates does not exceed the expected premium that is paid for borrowing long-term
Answers (1)
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “A firm will borrow long-term A. if the extra interest cost of borrowing long-term is less than the expected cost of rising interest rates ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Assume that the General Fund paid out in cash, $195,000 related to compensated absences during the year.
Answers (1)
Adjusting entries are primarily needed for: Multiple Choice Cash-basis accounting. Accrual-basis accounting. Current value accounting. Manual accounting systems.
Answers (1)
Sandhill Co. bought equipment for $600000 on January 1, 2016. Sandhill estimated the useful life to be 4 years with no salvage value, and the straight-line method of depreciation will be used.
Answers (1)
Mark goes to Tony's Lumber Yard to buy some lumber to build a new roof for his cabin. Mark tells Tony, the lumber yard owner, to provide him an exact type of wood that can resist the wood decay caused due to the damp environment around the cabin.
Answers (1)
Six months ago, you purchased 100 shares of stock in Arepa Corp. at a price of $43.89 per share. Arepas stock pays a quarterly dividend of $.10 a share. Today, you sold all of your holdings for $45.13 per share.
Answers (1)
New Questions in Business
The price for cigarettes sold by Big Tobacco Co Ltd was 6.00 per packet in March 2018. During the month of March, the consumption of cigarettes was 1000 packets.
Answers (1)
Services had net income for the month of October of $ 23 comma 040. Assets as of the beginning and end of the month totaled $ 369 comma 000 , and $ 399 comma 000 , respectively. Calculate Matured Water Services' ROA for the month of October.
Answers (1)
Symbic Foods, a chain of fast food restaurants, has included a drop-down menu on its main Web site. With this drop-down menu, people can view their country-specific Web site, which contains information about the dishes that Symbic Foods serves in
Answers (1)
Zoe buys three new lipsticks from a store at the mall. Which payment method would reduce the amount of money in her checking account?
Answers (1)
Q 1.1: managerial accounting reports could not be described as
Answers (1)