A firm will borrow long-term
A) if the extra interest cost of borrowing long-term is less than the expected cost of rising interest rates before it retires its debt.
B) if the extra interest cost of borrowing short-term due to rising interest rates does not exceed the expected premium that is paid for borrowing long-term.
C) if short-term interest rates are expected to decline during the term of the debt.
D) if long-term interest rates are expected to decline during the term of the debt.
A
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According to a February, 2010 issue of Business Week, the FBI caught 21 gun industry executives attending a trade convention in Las Vegas attempting to "pay illegal [bribes] to the defense minister of an African nation. In exchange, the small arms marketers thought they were securing the opportunity to sell millions of dollars in weapons and body armor." If true, the industry executives' alleged actions violated:
a. Title VII. b. The Sarbanes-Oxley Act. c. The Foreign Corrupt Practices Act. d. The Transparency Index.
Which of the following is not true about recording statutes in connection with security interests?
A) A deed of trust is valid between borrower and lender even if the deed of trust is not properly recorded. B) A mortgage that has not been properly recorded is not effective against later purchasers of a piece of property. C) A mortgage is valid between the borrower and lender even if the mortgage is not properly recorded. D) Most of the provisions for recording these interests are contained in federal statutes.