Gomez Electronics Needs to Arrange Financing for Its Expansion Program

question 22

Multiple Choice

Gomez Electronics needs to arrange financing for its expansion program.Bank A offers to lend Gomez the required funds on a loan where interest must be paid monthly,and the quoted rate is 8 percent.Bank B will charge 9 percent,with interest due at the end of the year.What is the difference in the effective annual rates charged by the two banks?

• A) 0.25%
• B) 0.50%
• C) 0.70%
• D) 1.00%
• E) 1.25%

Recognize the primary tactics and tools for disseminating news and information to the media.

Identify the role and impact of communications models in PR practices.

Comprehend the significance of strategic communication in achieving organizational goals.

Master the use of specific PR writing structures, such as the inverted pyramid and the 5Ws and H.

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Definitions:

Reverse Stock Split

A corporate action that consolidates the number of existing shares of stock into fewer, proportionally more valuable, shares.

Shares Outstanding

The sum of all shares of a company currently held by its investors, encompassing both large block holdings by institutional investors and shares that are under restrictions.

Liquidating Dividend

A type of dividend paid by a corporation out of its capital base, as opposed to its earnings, often signaling the company is dissolving.

Dividend Policy

A company's approach to distributing profits back to its shareholders, dictating how much to pay out as dividends and how often.