Question

2-4 What effect do you think each of the following factors should have on the interest rate that a firm must pay on a new issue of long-term dele? Indicate whether each factor would tend to raise, lower, or have an indeterminate effect on the interest tate, and then explain why. a. The firm uses bonds rather than a term loun. b. The finnuses debentures rather than first mortgage bonds. c. The firm makes its bonds convertible into common stock. d. If the firm makes its debentures subordinate to its lank debt, what will the effect be

Answer 1

Q1)Suppliers play a very important role in the competitive market.Therefore it is imperative for all organizations to maintain a very good relationship with their suppliers.

Organizations should be concerned with relationship with their suppliers because the company can become successful in their competition when there is good communication with suppliers as well as good negotiation between the company and the supplier.

An organization can manage its suppliers with better communication and by being transparent.A good relationship provides many benefits to the organization like delivery on time,.supplying good quality product , good supply of materials , good information etc.