Question
You are the manager of a company that obtained a variable-rate 10-year loan in 2019. At the time, the loan was based on a U.S.
You are the manager of a company that obtained a variable-rate 10-year loan in 2019. At the time, the loan was based on a U.S. prime lending rate of 4.75% plus a 2% premium. With the current increase in inflation and crude oil prices, your company's CFO is concerned about the risk of an increase in the prime rate.
What action could you take to mitigate that risk? Explain.
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Managerial Accounting A Focus on Ethical Decision Making
Authors: Steve Jackson, Roby Sawyers, Greg Jenkins
5th edition
324663854, 978-0324663853
