Non-Market or Subsidized fiNancing ________ the APV ___________

question 12

Multiple Choice

Non-market or subsidized financing ________ the APV ___________ .

• A)has no impact on; as the lower interest rate is offset by the lower discount rate
• B)decreases; by decreasing the NPV of the loan
• C)increases; by increasing the NPV of the loan
• D)has no impact on; as the tax deduction is not allowed with any government supported
• financing
• E)None of the above.

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Definitions:

Personal Gain

The advantage or benefit obtained for oneself, often in a financial or material sense.

Federal Securities Laws

Regulations established by the federal government to govern the sale, purchase, and creation of securities to protect investors from fraud.

State Securities Laws

Regulations established by individual states in the United States to govern the offer and sale of securities to protect investors from fraud.

Exemptions

Specific conditions or circumstances that allow an individual or entity to be relieved from a general requirement or rule.