Company X Wants to Borrow $10,000,000 Floating for 5 Years;

question 17

Multiple Choice

Company X wants to borrow $10,000,000 floating for 5 years; company Y wants to borrow $10,000,000 fixed for 5 years.Their external borrowing opportunities are shown below: $$\begin{array} { l l l } & \begin{array} { l } \text { Fixed-Rate Borrowing } \\\text { Cost }\end{array} & \begin{array} { l } \text { Floating-Rate Borrowing } \\\text { Cost }\end{array} \\\hline \text { Company X } & 10 \% & \text { LIBOR } \\\text { Company Y } & 12 \% & \text { LIBOR } + 1.5 \%\end{array}$$ A swap bank is involved and quotes the following rates five-year dollar interest rate swaps at 10.05%-10.45% against LIBOR flat. Assume company Y has agreed,but company X will only agree to the swap if the bank offers better terms.
What are the absolute best terms the bank can offer X,given that it already booked Y?

• A)10.45%-10.45% against LIBOR flat.
• B)10.45%-10.05% against LIBOR flat.
• C)10.50%-10.50% against LIBOR flat
• D)none of the above

Understand the broad spectrum of theories related to work motivation.

Describe and differentiate between need theories and process theories of motivation.

Explain the components and implications of Self-Determination Theory.

Identify the needs outlined in Maslow's hierarchy and their correspondence in Alderfer's ERG theory.

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Definitions:

Objective Culture

The physical and institutional manifestations of culture, such as art, laws, and technology, which exist independently of individuals.

Modernization

The transformation of societies from traditional or less developed systems to modern industrial societies, often associated with technological, economic, and cultural changes.

Intimate Knowledge

Refers to deep, personal understanding and familiarity gained through close relationship or direct experiences.

Shared Interest

A common concern or goal that unites individuals or groups, often serving as a basis for collective action or community formation.