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Finamgt 8 - 9
Finamgt 8 - 9
Finamgt 8 - 9
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Exercise 1
a) True f) False
b) True g) True
c) False h) True
d) True i) False
e) True j) False
Exercise 5
a) Bankers acceptance f) Fixed interest rate
b) Prime interest rate g) Floating interest rate
c) Contingent liability h) Compensating balance
d) secured loan i) Unsecured loan
e) Line of Credit j) Commercial paper
Exercise 14
a) Long term interest i) Warehouse receipt loan
b) Debt capital j) Discount period
c) Cost of long term debt
d) cost of common equity
e) Cost of capital
f) Capital Structure
g) Discount period
h) short end interest