Instruction 8.1: For the Following Problem(s), Consider These Debt Strategies Being Considered

question 5

Multiple Choice

Instruction 8.1:
For the following problem(s) , consider these debt strategies being considered by a corporate borrower. Each is intended to provide $1,000,000 in financing for a three-year period.
• Strategy #1: Borrow $1,000,000 for three years at a fixed rate of interest of 7%.
• Strategy #2: Borrow $1,000,000 for three years at a floating rate of LIBOR + 2%, to be reset annually. The current LIBOR rate is 3.50%
• Strategy #3: Borrow $1,000,000 for one year at a fixed rate, and then renew the credit annually. The current one-year rate is 5%.
-Refer to Instruction 8.1. After the fact, under which set of circumstances would you prefer strategy #2? (Assume your firm is borrowing money.)

• A) Your credit rating stayed the same and interest rates went up.
• B) Your credit rating stayed the same and interest rates went down.
• C) Your credit rating improved and interest rates went down.
• D) Not enough information to make a judgment.

Appreciate the variability and complexity of human sexual behavior and orientations.

Recognize the psychological impact of societal norms on gender and sexual identity.

Identify factors contributing to gender differences in mental health and behavior.

Understand the differences and similarities in how men and women experience and perceive friendships.

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Definitions:

Somatic Cells

Any cell of the body except sperm and egg cells, which are involved in the formation of an organism's tissues and organs.

Chromosomal Abnormalities

Genetic disorders caused by changes in the number or structure of chromosomes, leading to physical or mental developmental issues.

Conception

The process of fertilization where an egg and sperm combine to form a zygote, marking the beginning of pregnancy.

Miscarriages

The spontaneous loss of a pregnancy before the fetus can survive outside the womb, typically before 20 weeks of gestation.