Royal Caribbean Cruises would like to add an additional ship to its fleet. A new ship will cost $1.4 billion to build. Royal Caribbean plans to use cash and a long-term loan to finance the production of the new ship. However, the current interest rate on a $900 million loan is 5%, which Royal Caribbean feels is high. Which key consideration for choosing a form of financing does this example illustrate?
A) amount of financing
B) external factors
C) cost of financing
D) term of financing

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The Answer of Royal Caribbean Cruises would like to add an additional ship to its fleet. A new ship will cost $1.4 billion to build. Royal Caribbean plans to use cash and a long-term loan to finance the production of the new ship. However, the current interest rate on a $900 million loan is 5%, which Royal Caribbean feels is high. Which key consideration for choosing a form of financing does this example illustrate?
A) amount of financing
B) external factors
C) cost of financing
D) term of financing

Royal Caribbean Cruises Would Like to Add an Additional Ship