Which of the following increases the yield on a loan, so that the lender is willing to offer the borrower a blow Market interest rate?
A. Origination fee
B. Discount points
C. administrative charges
D. Prepayment penalty
Answer: B. Discount points
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Which of the following statements describes a purchase order?
A) It is an order to purchase goods from a supplier. B) It is a statement from the supplier showing the goods purchased and the amount due. C) It is a report showing that the goods have been received in good condition, as ordered. D) It is a document authorizing a payment to a supplier.
Which of the following is NOT a capital budgeting question?
A) The choice of which long-term assets to purchase to meet the firm's business goals B) The choice of what type of business a firm wants to operate C) The proper mix of stocks and bonds to issue for financing assets D) None of the above are capital budgeting questions.