QUESTION 11

The major factors affecting the cost, or interest rate, of long-term debt are all of these EXCEPT.

Loan Maturity

Loan size

Borrower risk

Purpose of the loan

QUESTION 12

Positive covenants of loans prohibit borrower of certain actions.

True

False

QUESTION 13

Financial Statements for 2010 ($ thousand) for a Shoe Company shows the following data:

What would be the estimated external fund required (EFR) for 2011 pro-forma.

$4,500

$0

$8,111

$45

QUESTION 14

LIBOR rate is?

An interest rate determined by the New York Stock Exchange

Is the Lebanon interest bank offer rate

Is the London interbank offered rate

None of the above

QUESTIONS 15

Increasing sales volume would require additional investments in current assets, such as inventories and receivables.

True

False