TABLE 9.1 Use the Information for Polaris Corporation to Answer Following Question(s)

question 28

Multiple Choice

TABLE 9.1
Use the information for Polaris Corporation to answer 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 9.1. What is the all-in-cost (i.e., the internal rate of return) of the Polaris loan including the LIBOR rate, fixed spread and upfront fee?

• A)4.00%
• B)5.00%
• C)5.53%
• D)6.09%

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Definitions:

Long Work Hours

Extended periods spent working beyond the standard workday, which can impact health, well-being, and work-life balance.

Flexibility

The ability to adapt to new, different, or changing requirements and situations.

Telecommuting

The practice of working from a remote location, outside of a traditional office environment, often from home, through the use of technology.

Job Performance

The level of efficiency and effectiveness with which an employee carries out their assigned tasks and duties.