If abusiness borrows $1,000,000,000 for one year at an interest rate of 8 percent,what is the interest expense?
A. 80million dollars
B. 8 million dollars
C. $8,000,000
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A business borrows $1,000,000,000 for one year at an interest rate of 8 percent.Ifthe interest rate increases by just 1 percent, what is the extra interestexpense?
A. $8,000,000
B. $9,000,000
C. $10,000,000
The interest rate has impact on a firm's.
A. revenues
B. expenses
C. net sales
Since interest rates affect the cost of financing, some possible projects considered by the firm that would be feasible during periods of low interest rates may not be feasible during periods of high interest rates.
A. 对
B. 错
Firms that have very little debt may be somewhat insulated from changes in interest rates because their interest expenses will not change very much.
A. 对
B. 错