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1. Term loan. A firm is seeking a term loan from a bank. Under what conditions would it want a fixed interest rate, and under what conditions would it want the rate to fluctuate with the prime rate?

2. Lease advantages. Hershey Foods Corporation is a high marginal taxpayer and a high creditworthy firm. Explain when it might make sense for Hershey to lease an asset. Under what conditions should Hershey lease its computer systems?

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Category:- Basic Finance
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