These solutions may offer step-by-step problem-solving explanations or good writing examples that include modern styles of formatting and construction of bibliographies out of text citations and references. Students may use these solutions for personal skill-building and practice. Unethical use is strictly forbidden.One of the problems that the business may face is when interest rates go down in the future. For instance, if the rate of the long-term loan was contracted at 4%, and the interest rate become lower, say 2%, then the company is tied to a long-term liability with a high interest rate. This means that that its weighted average cost of capital will be so high for a long time, compared to the situation had the company just borrowed for a short term....
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