Describe what a crediting rate/score is. Should this be a factor in evaluating companies?
The firm will need to raise funds immediately for the acquisition, and debt will be used. Should the firm borrow on a long-term or short-term basis? Why?
Explain the effect, if any, inflation rates will have on the purchase? How significant is this factor?
Define the relationship between yield curves and the term structure of interest rates.
Explain what would happen to interest rates if a new process was developed that allowed automobiles to run off oil that was formulated based on lemonade?
The technology used to convert this liquid to gas would be pricey but well worth it. What impact would this technology have on interest rates?
Discuss what ratios should be used to assess the financial health of the potential acquisition?
