Finance

For an exporter to lose money after accepting a banker’s acceptance,

For an exporter to lose money after accepting a banker’s acceptance, A) both the importer and the importer’s bank would need to default on the agreement. B) the importer would have to default on the agreement. C) the exporter would have to default on the agreement. D) the federal government would need to step into […]

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Date: September 19th, 2020

In what ways are preferred shares like debt and in what ways are they

In what ways are preferred shares like debt and in what ways are they like common equity? What will be an ideal response?     ANSWER Like debt preferred shares are paid prior to equity and expect to receive a predetermined payout that must be paid prior to common stock holders receiving any. Further, neither […]

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Date: September 19th, 2020

Compared to a line of credit, a revolving credit agreement will be ___

Compared to a line of credit, a revolving credit agreement will be ________ for a firm. A) a lower cost, higher risk method of short-term borrowing B) a lower cost, lower risk method of short-term borrowing C) a higher cost, higher risk method of short-term borrowing D) a higher cost, lower risk method of short-term […]

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Date: September 19th, 2020

What are Michael Porter’s Five Forces that govern the competition with

What are Michael Porter’s Five Forces that govern the competition within an industry? How do these forces impact overall growth opportunities within an industry? What will be an ideal response?     ANSWER Porter Five Forces are: 1. The threat of new entrants, 2. The threat of substitute products or services, 3. The bargaining power […]

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Date: September 19th, 2020