If a firm that's doing very well pays the same return to equity and debt share holders, and needs to raise more money, it may be wise to use debt because a. all of these b. borrowing is always less of an effort than raising additional equity capital. c. interest is tax deductible resulting in a lower cost to the firm. d. Equity is the less desirable source of capital.

Which of the following is not a consideration when determining your asset allocation

The role of the credit department includes: a. evaluating customers' credit applications to determine whether they meet the company's approval standards. b. approving all credit applications in order to avoid losing sales. c. collecting cash from customers. d. following unwritten approval standards for processing customers' credit applications.

Suppose a holiday inn hotel has annual fixed costs applicable to its rooms of $1.2 million for its 300-room hotel, average daily room rents of $50, and average variable costs of $10 for each room rented. it operates 365 days per year. the amount of operating income on rooms, assuming an occupancy* rate of 80% for the year, that will be generated for the entire year is *occupancy = % of rooms rented