The normal term structure of Interest rates implies that short-term debt is cheaper than long-term debl. Which one of the following is the best explanation of why many companies borrow long-term funds? 29 Time Value Tables 5 Calculator A Short-term loans are generally more cumbersome to arrange, and involve large transaction costs. B Long-term loans give the borrower the flexibility to refinance their borrowing if rates decrease during the life of the loan. Long-term loans "lock in" funding for several years, and the borrower is assured funding even if a credit crunch develops during the life of the loan. D Long-term loans can provide funding even for the highest seasonal levels of inventory or receivables. An upward sloping yield curve most likely reflects all of the following factors except for increasing 9 Time Value Tables Calculator A inflation rates. B economic growth. interest rates. D market volatility The IMA's Statement of Ethical Professional Practice includes an integrity standard, which requires an IMA member to Time Value Tables Calculator A disclose deficiencies in internal controls in conformance with organization policy. B report any relevant information that could influence users of the financial statements. disclose confidential information when authorized by his/her firm or required under the law. D identify and make known anything that may hinder his/her judgment or prevent satisfactory completion of any duties. Marion Smith, a financial analyst, is evaluating Solar Service Inc., a publicly-traded company, as a possible short-term (one-year) holding in a client's portfolio. Smith is expecting Solar Service Inc. to pay a $0.50 dividend next year and projecting that the price of the company's stock will be at $20.00 in one year. Smith has determined that the required rate of return for Solar Service Inc. is 10%. Based on the data provided, what is Smith's approximate valuation for a share of Solar Service Inc. stock today? Time Value Tables Calculator A $18.00. B $18.27. $18.64. D $18.74