Biochemical Corp. requires $580,000 in financing over the next three years. The firm can borrow the funds for three years at 12.90 percent interest per year. The CEO decides to do a forecast and predicts that if she utilizes short-term financing instead, she will pay 9.75 percent interest in the first year, 14.50 percent interest in the second year, and 10.90 percent interest in the third year. Assume interest is paid in full at the end of each year. a. Determine the total interest cost under each plan. Interest Cost Long-term fixed-rate Short-term variable-rate
b. Which plan is less costly?
a. Short-term variable-rate plan
b. Long-term fixed-rate plan

The revenues of a company increased by 39% in year one and decreased 22% in year two. what is the overall change over the two-year period?

What are the main advantages and disadvantages of organizing a firm as a c corporation? the advantages are: (select all the choices that apply.) a. there is no limit on the number of owners a c corporation may have, thus allowing the corporation to raise substantial amounts of capital. b. the life of the business can continue beyond the death of any of the owners. c. the corporation can use the assets of the owners to pay for corporate liabilities. this attracts smaller investors to the corporation. d. the liability of the owners is limited to the amount of their investment in the firm. the disadvantages are: (select all the choices that apply.) a. income to a c corporation is subject to double taxation, once at the corporate level and again when received by the owners in the form of a dividend. b. the life of the business usually ends with the death of any of the owners. c. the c corporation is more complicated and more expensive to set up than other business entities. d. corporate liabilities can be passed on to the share

Determine if the following statements are true or false. an increase in government spending can crowd out private investment. an improvement in the budget balance increases the demand for financial capital. an increase in private consumption may crowd out private investment. lower interest rates can lead to private investment being crowded out. a trade balance in sur+ increases the supply of financial capital. if private savings is equal to private investment, then there is neither a budget sur+ nor a budget deficit.