Long-term debt

Assignment Help Finance Basics
Reference no: EM132551218

Short-term debt financing usually attracts lower interest rate. However, it is common to observe businesses finance with long-term debt. Is such behaviour irrational? Explain.

Reference no: EM132551218

Questions Cloud

Fixed assets are projected to increase : A pro forma statement indicates that both sales and fixed assets are projected to increase by 7 percent over their current levels. Given this, you can safely as
Pro forma statement-net working capital : Please explain this to me! When constructing a pro forma statement, net working capital generally:
Calculate free cash flow to equity : The following information is available from a Company's financial statements, with dollar amounts in millions:
What is the irr on project : A proposed project at Very Big Corporation has project costs of $144,000 and future cashflows are expected to be in year one $58,000, in year two $63,000
Long-term debt : Short-term debt financing usually attracts lower interest rate. However, it is common to observe businesses finance with long-term debt. Is such behaviour irrat
Three years what will the value of her account : Sarah, a nurse receives her $1,200 stimulus check. She decides to deposit the check today into a savings account that earns 5% interest compounded annually. In
Positive external financing need : The dividend payout ratio is constant at 40 percent. If the firm has a positive external financing need, that need will be met by:
Calculate the annual cash flows of the project : Maju Construction (MCo) Sdn. Bhd. is bidding on a contract to build four tiny camping house (TCH) a year for the next three years for Sintokian campsite.
Why is anti money laundering important : Why is Anti Money Laundering Important ?

Reviews

Write a Review

Finance Basics Questions & Answers

  What would an investor in mapco stock require

What would an investor in Mapco's stock require as a return, if the Treasury bond rate is 1.25%?

  Foreign exchange exposure and management

What are some financial crisis which have occurred in the last ten years recognize the causes and what were the solutions?

  Explain the advantages and disadvantages to z plc

Explain the advantages and disadvantages to Z plc of issuing fresh share capital.

  What is the cap rate

A 150,000-SF office building has a triple-net lease providing a constant rent of $20/SF per year. (With a triple-net lease, you can assume the rent equals.

  Calculate u d, and p for a two-step tree

Consider a European call option on a non-dividend-paying stock where the stock price is $40, the strike price is $40, the risk-free rate is 4% per annum, the volatility is 30% per annum, and the time to maturity is six months.

  Your client says with the unrealized gains in my portfolio

your client says with the unrealized gains in my portfolio i have almost saved enough money for my daughter to go to

  Dixon corporation public offering

Dixon Corporation is considering a public offering of common stock. The firm will offer one million shares of common stock for sale. What are the total expenses for the issue?

  Time value of money calculations using a calculator

Your Auntie lyanka is 65 and has just retired. She has savings of 5250,000. She needs it to last for 30 years (everyone In your family mysteriously

  Calculate the cash down payment for the loan

Bob and Carol Gibbs are set to move into their first apartment. They visited Furniture R'Us, looking for a dining room table and buffet.

  How many days are in the cash cycle

ABC Corporation currently has an Inventory Turnover of 6.57, an Accounts Receivable Turnover of 18.77, and an Accounts Payable Turnover of 10.91

  Differences between basic research and applied research

Describe the characteristics of descriptive, correlational, and experimental research designs, and discuss the advantages and disadvantages of each.

  What is the present value of the payments

What is the present value of the payments if they are in the form of an ordinary annuity? What is the present value if the payments are an annuity due?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd