1. The value of a country's currency may increase by
A. continuous excessive government spending.
B. a stock market rally in that country.
C. an increase in that country's money supply.
D. more than one of the above.
2. Buchanan Corp. is refunding $10 million worth of 10% debt. The new bonds will be issued for 8%. The corporation's tax rate is 35%. The call premium is 9%. What is the net cost of the call premium?
A. $390,000
B. $1,080,000
C. $585,000
D. $702,000