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mash [69]
4 years ago
14

For the following problem(s), consider these debt strategies being considered by a corporate borrower. Each is intended to provi

de $1,000,000 in financing for a three-year period.∙ Strategy #1: Borrow $1,000,000 for three years at a fixed rate of interest of 7%.∙ Strategy #2: Borrow $1,000,000 for three years at a floating rate of LIBOR + 2%, to be reset annually. The current LIBOR rate is 3.50%∙ Strategy #3: Borrow $1,000,000 for one year at a fixed rate, and then renew the credit annually. The current one-year rate is 5%.Refer to Instruction 8.1. Which strategy (strategies) will eliminate credit risk?
Business
1 answer:
natita [175]4 years ago
5 0

Answer:

From the strategies provided, the correct debt strategies that will help a corporate borrower eliminate credit risk are strategy 1 and strategy 2, which are; Strategy #1: Borrow $1,000,000 for three years at a fixed rate of interest of 7%. and Strategy #2: Borrow $1,000,000 for three years at a floating rate of LIBOR + 2%, to be reset annually. The current LIBOR rate is 3.50%.

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Examine the credit terms below
ValentinkaMS [17]

Answer:

To entice customers to use it's credit card

Explanation:

Credit Card companies use tactics like this because it sounds more appealing then having to start paying immediately. This gives them an advantage over other companies that don't offer this making more people want to use their credit card.

8 0
3 years ago
Santoyo Corporation keeps careful track of the time required to fill orders. Data concerning a particular order appear below:
GrogVix [38]

Answer:

Santoyo Corporation

Tracking Time to Fill Orders:

The delivery cycle time was 25 hours.

Explanation:

The delivery cycle time sums the time occasioned by the supply delay and the reordering delay before the goods reach the customer.  As an order is received by Santoyo Corporation there is usually a wait time of half a day or 12.5 hours.  The processing of the order consumes 1.6 hours.  Before delivery is made, the inspectors spend 0.8 hours or 48 minutes doing what they know best.  Then, freight takes 4.2 hours for the delivery van to reach the customer's warehouse.  At that point, another 5.9 hours are spent queueing for the receipt of the goods by the customer.

8 0
4 years ago
Under the doctrine of strict liability, liability for injuries is imposed for reasons other than fault. a. True b. False
Alina [70]

Answer:

True

Explanation:

The doctrine of strict liability applies to tort law, and it states that the plaintiff doesn't have to prove that the defendant was negligent, intentional or at fault. All the plaintiff must prove is that the tort occurred, that he/she suffered because of it and that the defendant was responsible for the tort.

This doctrine generally applies to situations that are considered dangerous by nature, e.g. selling alcohol to minor or ownership of wild animals.

6 0
3 years ago
What costs are considered “relevant” and which are considered “irrelevant “to a business
Klio2033 [76]

Answer:

Relevant costs are costs that will be affected by a managerial decision. Irrelevant costs are those that will not change in the future when you make one decision versus another.

Explanation:Examples of irrelevant costs are sunk costs, committed costs, or overheads as these cannot be avoided.

4 0
3 years ago
Zooxanthellae are autotrophic marine protists that are found in the living tissues of some simple marine invertebrates such as c
taurus [48]

Answer:

The correct answer is "dinoflagellates"

Explanation:

Zooxanthellae are autotrophic marine protists that are found in the living tissues of some simple marine invertebrates such as corals, sea anemones, and jellyfish. Zooxanthellae are dinoflagellates.

7 0
3 years ago
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