Your firm needs to borrow $50000 for one year. Which of the following loan opti

Your firm needs to borrow $50000 for one year. Which of the following loan options offers the least cost? Select one: A. 13 ? % simple interest B. 10 ? % discount interest with a 10%
compensating balance requirement C. 12 ? % discount interest D. 11% simple interest with a 20%
compensating balance requirement Question 6 Not yet answered Marked out of 1.00 Flag question A firm changes its credit policy from 2/10 net 30 to 3/10 net 30. The change is meant to match the competition??s recent changes so no increase
in sales is expected. Average accounts receivable will probably decline as a result of this change. Select one: True False Question 7 Not yet answered Marked out of 1.00 Flag question Which of the following statements is most correct? Select one: A. Trade credit is provided to a
business when purchases are made B. Short-term debt while often
cheaper than long-term debt exposes a firm to the potential problem associated with interest rate risk C. Both statements 1 and 2 are
false D. Both statements 1 and 2 are
correct Question 8 Not yet answered Marked out of 1.00 Flag question Accruals represent a spontaneous source of funding but unfortunately due to law and economic forces firms have little control over the level of
these accounts. Select one: True False