If short-term rates are lower than long-term rates, why may a business still choose to finance with

Question:

If short-term rates are lower than long-term rates, why may a business still choose to finance with long-term debt?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Gapenskis Understanding Healthcare Financial Management

ISBN: 9781640551091

8th Edition

Authors: George H. Pink, Paula H. Song

See More Books

Question Posted: Dec 27, 2023 06:41 AM

See More Questions

Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...
1. In the classical model, it is thought that the long-run: A. and short-run aggregate supply curves are both upward sloping. B. aggregate supply curve is vertical and the short-run aggregate supply...
The beam shown below is supported by a pin at A and a roller at B. The weight of the beam is 12 kN and a 15 kN force is applied 3 m to the right of A as shown. Determine the reaction forces at A and...
Show that g(E) = (3N / 2)EF -3/2 E1/2 (Equation 27-30) follows from Equation 27-28 for g(E), and Equation 27-15a forEF. h? (3N)2/3 EF 8m (zV %3D 27-15a 87 2m2V g(E) = 27-28 87V2m2V 3N 8(E): 27-30 hi
An ideal gas is characterised by the relation pV = NRT where p is the pressure of the gas, V is the volume, T is the temperature, N is the number of moles of gas and R is a constant.a) Calculate the...
Go to the Wall Street Journal home page at www.wsj.com. Search for any firm of your choice. Find its earnings announcements. What did you learn about the company from the announcements? Also, search...
Refer to the data in Exercise 4-12. Sinclair Company manufactures a line of lightweight running shoes. CEO Andrew Sinclair estimated that the company would incur $2,500,000 in manufacturing overhead...
6. An annular disk of mass M, inner radius a and outer radius b is placed on a horizontal surface with coefficient of friction , as shown in the figure. At some time, an impulse Jox is applied at a...
PART-4 PART-5 PART-6 Jaguar Plastics Company has been operating for three years. At December 31 of last year, the accounting records reflected the following: Cash Investments (short-term) Accounts...
Explain the following statement: A firm's financing policy depends in large part on the nature of its assets.
What is the difference between a normal yield curve and an inverted one?
Which type of facility layout would be best used for the production of custom-designed bicycles? a. Product layout b. Process layout c. Cellular layout d. Fixed position layout
What are the two types of hormones? How does each type of hormone produce an effect in a target cell?
Show that your blood supply can carry as many as 3 10 22 molecules of oxygen. Heres some information you may find useful: You have 25 trillion red blood cells. Each red blood cell contains 300...
Explain how hemoglobins oxygen affinity is affected by blood pH, and how this change in oxygen affinity is adaptive.
What is unusual about the process of meiosis that produces the egg?
Vasectomy is a form of male sterilization in which a section of each vas deferens is removed. How does this cause sterility, preventing a man from fathering children?
You manage an $11.5 million portfolio, currently all invested in equities, and believe that the market is on the verge of a big but short-lived downturn. You would move your portfolio temporarily...
According to a recent survey, 40% of millennials (those born in the 1980s or 1990s) view themselves more as spenders than savers. The survey also reveals that 75% of millennials view social...
Stocks A and B have the following historical returns: a. Calculate the average rate of return for each stock during the 5-year period. Assume that someone held a portfolio consisting of 50% of Stock...
The Jimenez Corporations forecasted 2008 financial statements follow, along with some industry average ratios. a. Calculate Jimenezs 2008 forecasted ratios, compare them with the industry average...
The Pennington Corporation issued a new series of bonds on January 1, 1984. The bonds were sold at par ($1,000), had a 12% coupon, and matured in 30 years, on December 31, 2013. Coupon payments are...
12. An ideal spring has a natural length of 1 m. A force of 24 N holds the spring stretched to a total length of 1.8 m. (a) Find the force constant k. (b) Determine the amount of work required to...
1. Consider three wires of equal lengths and diameters. One is copper, one is aluminum, and one is silicon. For simplicity assume all effective masses are equal to the electron mass. A. Using the...
1. You are given a circular wheel along with equipment with which the wheel can be fixed either with horizontal axis or with vertical axis. You also have access to any equipment that you have seen or...

If short-term rates are lower than long-term rates, why may a business still choose to finance with

Question:

Step by Step Answer:

Even if shortterm rates are lower than longterm rates a business may choose to finance with longterm debt for several reasons 1 Stability and Predicta...View the full answer

Gapenskis Understanding Healthcare Financial Management

Students also viewed these Business questions