TABLE 8.2 Use the Information for Polaris Corporation to Answer the Following

question 2

Multiple Choice

TABLE 8.2
Use the information for Polaris Corporation to answer the following question(s) .
Polaris is taking out a $5,000,000 two-year loan at a variable rate of LIBOR plus 1.00%. The LIBOR rate will be reset each year at an agreed upon date. The current LIBOR rate is 4.00% per year. The loan has an upfront fee of 2.00%

-Refer to Table 8.2.What portion of the cost of the loan is at risk of changing?

• A)the LIBOR rate
• B)the spread
• C)the upfront fee
• D)all of the above

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Definitions:

Network Design

The planning and structuring of a network, including the selection of hardware and software to meet the requirements and objectives of an organization.

Disadvantages

These are the unfavorable, negative, or detrimental aspects or conditions that reduce the effectiveness or success.

Dependence

A situation in which the condition or fortunes of a person or entity are affected by another.

Centralization

The concentration of control and decision-making authority in a centralized location or group within an organization.