Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Which of the following is a possible advantage to a company choosing a loan with a long-term rate of 4.2% over a short-term loan with

Which of the following is a possible advantage to a company choosing a loan with a long-term rate of 4.2% over a short-term loan with a rate of 3.5%? a. A long- term loan makes them more eligible to become a public company. b. The tax deductions will be more beneficial with a long-term loan. c. With a long-term loan, the interest cost would remain constant over the loan life. d. A long-term loan will always lower the interest rate after 5 years. e. A short-term loan would likely decrease their credit rating.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cost Accounting

Authors: Mark Lee Inman

1st Edition

0434908304, 9780434908301

More Books

Students also viewed these Accounting questions

Question

A contract in which the values exchanged may be unequal is

Answered: 1 week ago