The Financial Manager of Carolina Graphics Negotiated a ________ with Her

question 219

Multiple Choice

The financial manager of Carolina Graphics negotiated a ________ with her bank that allows Carolina to borrow up to $50,000 without collateral. This arrangement eliminates the need to renegotiate the terms of the loan and complete new paperwork each time Carolina borrows money. The preapproved short-term loan agreement is contingent upon the bank having the funds available

• A) line of credit
• B) factor agreement
• C) cash flow conversion
• D) renewable income option

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Definitions:

Annual Dividend

The total dividend payment a shareholder receives from a stock or investment in a year, expressed on a per-share basis.

Market Value

The instant price at which transactions for a service or asset can be made.

Required Return

The minimum yearly interest rate that entices both individuals and companies to invest in a specific security or endeavor.

Share Dividend

A dividend payment made in the form of additional shares rather than a cash payout, often opted by a company to conserve cash.