Company X,a Low-Rated Firm,desires a Fixed-Rate,long-Term Loan

question 24

Multiple Choice

Company X,a low-rated firm,desires a fixed-rate,long-term loan.X presently has access to floating interest rate funds at a margin of 1.25% over LIBOR.Its direct borrowing cost is 11% in the fixed-rate bond market.In contrast,company Y,which prefers a floating-rate loan,has access to fixed-rate funds in the Eurodollar bond market at 9% and floating-rate funds at LIBOR + 1/4%.Suppose they split the cost savings.
-How much would Y pay for its floating-rate funds?

• A)LIBOR -.25%
• B)LIBOR -.50%
• C)LIBOR
• D)LIBOR + .5%

Describe features and implications of plans proposed at the Constitutional Convention (Virginia Plan, New Jersey Plan).

Understand the policies and significance of the Northwest Ordinance of 1787.

Recognize the challenges and responses related to American navigation rights and economic policies under the Articles of Confederation.

Comprehend the role and responsibilities conferred by the Constitution on different branches of government and specific positions.

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Definitions:

Basic Psychological Needs

Essential motivational drives related to autonomy, competence, and relatedness, which humans need to foster well-being and growth.

Self-Determination Theory

A theory of motivation that suggests people are driven to grow and change by three innate and universal psychological needs: competence, autonomy, and relatedness.

Competence

Competence refers to the ability of an individual or organization to effectively perform a task or job, based on their knowledge, skills, and experience.

Need Theories

Motivation theories that specify the kinds of needs people have and the conditions under which they will be motivated to satisfy these needs in a way that contributes to performance.