On august 1, 2018, trico technologies, an aeronautic electronics company, borrows $21 million
cash to expand operations. the loan is made by firstbanc corp. under a short-term line of credit
arrangement. trico signs a six-month, 9% promissory note. interest is payable at maturity. firstbanc
corp.'s year-end is december 31.
a. record the acceptance of the note by firstbanc corp.
b. record the appropriate adjustment for the note by firstbanc corp. on december 31, 2018.
c. record the receipt of cash by firstbanc corp. at maturity.

Which of the following is an effective strategy when interest rates are falling? a. use long-term loans to take advantage of current low rates. b. use short-term loans to take advantage of lower rates when you refinance a loan. c. deposit to a short-term savings instrumentals to take advantage of higher interest rates when they mature. d.select short-term savings instruments to lock in earnings at a current high rates.

Rossdale co. stock currently sells for $68.91 per share and has a beta of 0.88. the market risk premium is 7.10 percent and the risk-free rate is 2.91 percent annually. the company just paid a dividend of $3.57 per share, which it has pledged to increase at an annual rate of 3.25 percent indefinitely. what is your best estimate of the company's cost of equity?

Crowding out is a phenomenon focused upon most by the macroeconomists of whereby a government deficit interest rates, which in turn private investment spending. this group also believed that fiscal policy is the only thing that can lower natural unemployment. is just as effective in countering recessions as monetary policy. can be used most of the time, but monetary policy becomes a better option when velocity is fluctuating. should be used only if the central bank follows a monetary policy rule. faces problematic lags in propagating changes throughout the economy.