Author Question: Royal Caribbean Cruises would like to add an additional ship to their fleet. A new ship will cost ... (Read 474 times)

skymedlock · **on:** Jul 14, 2018

Royal Caribbean Cruises would like to add an additional ship to their fleet. A new ship will cost 1.4 billion to build. Royal Caribbean plans to use cash and a long-term loan to finance the production of the new ship. However, the current interest rate of a 900 million loan is 5, which Royal Caribbean feels is high. Which key consideration for choosing a form of financing does this example illustrate?
A) Amount of financing
B) Influence on company operations
C) External factors
D) Cost of financing
E) Term of financing

Question 2

Your company just started offering a profit-sharing plan, which could increase your total compensation by as much as 25-if the company does well. This form of compensation is classified as:
A) a salary.
B) an incentive.
C) a benefit.
D) a commission.
E) a non-monetary form of compensation.