4 The following are the expected one-year T-bill rates for the next four years: 2%, 3%, 4%, and 5%. According to the basic model of the expectations hypothesis, what would you expect the rate for four-year securities to be? Multiple Choice 00 28.05 4.25% 4.5% O 3% - 5 Kuznets Rental Center requires $500,000 in financing over the next two years Kuznets can borrow long-term debt at 8 percent interest per year for two years. Alternatively, Kuznets can borrow short-term debt at 6 percent interest in the first year and 9 percent interest in the second year. Assuming Kuznets pays off the interest at the end of each year, which of the following statements is true? points 00:27:46 Multiple Choice O Kuznets will end up paying more in total interest under the long-term financing plan. Kuznets will pay less in the first year under the long-term financing plan Kuznets will end up paying less in total interest under the long-term financing plan 6 Tobin Supplies Company expects sales next year to be $340,000 Inventory and accounts receivable will increase $80,000 to accommodate this sales level. The company has a steady profit margin of 15 percent with a 40 percent dividend payout. How much external financing will Tobin Supplies Company have to seek? Assume there is no increase in liabilities other than that which will occur with the external financing 15 points External funds needed 00 27.27