All of the following are likely to increase the cost of a company's short-term financing EXCEPT
A) an increase in the company's debt rating by Moody's or Standard and Poors.
B) an increase in the compensating balance required.
C) taking a loan on a discount basis.
D) an increase in the bank's prime lending rate.
A
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Which of the following transactions does NOT affect the quick ratio?
A) Land held for investment is sold for cash. B) Equipment is purchased and is financed by a long-term debt issue. C) Inventories are sold for cash. D) Inventories are sold on a credit basis.
The 1 year interest rate in the U.S. is 1%. The spot exchange rate for Canadian dollars 1.007 to the U.S.dollar. The 6 months forward rate is 1.0068 to the U.S. dollar. These prices indicate that interest rates in Canada, on an annualized basis, are about
A) .08% lower. B) .08% higher. C) .04% higher. D) .8% lower.