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Author Question: You want to buy 20,000 worth of shares in Tootsie Roll Industries Inc on margin, but you only have ... (Read 109 times)

ec501234

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on: Jul 10, 2018
You want to buy 20,000 worth of shares in Tootsie Roll Industries Inc on margin, but you only have 10,000 of your own money to invest. The remaining 10,000 is borrowed by issuing T-Bills; assume the cost of borrowing is the risk-free rate.
 
  What is the portfolio weight for the risk free asset (T-Bills)?
  A) -1.00
  B) -0.50
  C) 1.00
  D) 0.50
  E) 2.00

Question 2

What is the primary advantage of a firm that is able to issue commercial paper to finance its
  short-term assets?
 
  A) Interest rates on commercial paper are generally lower than rates on bank loans.
  B) Commercial paper is guaranteed by the Federal Government
  C) Commercial paper provides greater flexibility in terms of repayment.
  D) Commercial paper does not need to be repaid.
Foundations of Finance ¦ Keown, Petty, Martin ¦ 9th Edition
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frankwu0507

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Reply #1 on: Jul 10, 2018
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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ec501234

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Reply #2 on: Jul 10, 2018
TY


frankwu0507

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Reply #3 on: Jul 10, 2018
Happy to Help


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