2. The term structure of interest rates: I. May Indicate investors' expectations about future interest rates II. Is normally, but not always, upward sloping III. Can be helpful for managers when making borrowing decisions

Select one:

A. I only

B. I and III only

C. I and II only

D. I, II, and III

3. Jim's Golf Shop has $10,000,000 in assets. $4,000,000 are current assets, of which 30% are permanent. The remaining $6,000,000 are fixed assets. Long-term interest rates are 9.00%, while short-term interest rates are 6.00%. How much total interest will Jim's Golf Shop pay if it perfectly matches its financing with its asset liquidity?

Select one:

A. $780,000

B. $600,000

C. $816,000

D. $900,000