Systematic risk is also referred to as

diversifiable risk

economic risk

nondiversifiable risk

not relevant

Debt is generally the least expensive source of capital. This is primarily due to

fixed interest payments

its position in the priority of claims on assets and earnings in the event of liquidation

the tax deductibility of interest payments

the secured nature of a debt obligation

A firm arranged for a 120-day bank loan at an annual rate of interest of 10 percent. If the loan is for $100,000, how much interest in dollars will the firm pay? (Assume a 360-day year.)

$10,000

$30,000

$3,333

$1,000