Answer:
c. $8.63
Explanation:
Missing word <em>"The forward LIBOR rate is 7%. All rates are compounded semiannually. A. $8.88
, B. $9.12
, C. $8.63
, D. $9.02"</em>
Principal = $1000, FRA Rate = 9 % per annum, LIBOR after 2 years = 7 % per annum, Compounding Frequency: Semi-Annual, Risk-Free Rate = 6 % per annum
The FRA matures 2 years or 24 months from now. Further, the Interest Rate that the FRA hedges will create an interest expense only at the end of the LIBOR loan period which is an additional 6 months after the 24 month period.
Hence, Exchange of Interest Expense at the end of 30 Months = (FRA Rate - LIBOR) x Principal (calculated on a semi-annual basis)
= (0.045 - 0.035) * 1000
= $10
Current Value of FRA = Present Value of Interest Expense at the end of the 30 Months Period
= 10 / [1+(0.06/2)]^(30/6)
= $8.6261
= $8.63
Answer:
$40.875
Explanation:
Given that,
Selling Expenses = $ 9,600
Merchandise Inventory on December 31 = 33,000
Merchandise Inventory on January 1 = 47,000
Purchases of merchandise = 83,500
Rent for store = 12,100
Sales commissions = 7,300
Sales revenue = 168,500
Cost of goods sold:
= Beginning merchandise inventory + Merchandise purchase - Ending merchandise inventory
= $47,000 + $83,500 + $33,000
= $163,500
If Crabapples sold 4,000 boxes of dry fruit during the year, then the cost per box of dry fruits is:
= Cost of goods sold ÷ Number of boxes sold
= $163,500 ÷ 4,000
= $40.875
Answer:
latter, latter
Explanation:
Property rights system determine how economic resources are used and owned by individuals, associations, collectives, or governments.
It also includes intellectual property such as inventions or ideas.
Such rights reduce destructive competition for control of economic resources. and replace this competition by peaceful means.
In a system where people are allowed to keep one-third of the monetary rewards of their labor with a system in which they keep two-thirds, we should expect more entrepreneurship under the <u>latter</u> system and faster real economic growth under the <u>latter</u> system.
The main body of law governing collective bargaining is the National Labor Relations Act (NLRA). It is also referred to as the Wagner Act. It explicitly grants employees the right to collectively bargain and join trade unions. The NLRA was originally enacted by Congress in 1935 under its power to regulate interstate commerce under the Commerce Clause in Article I, Section 8 of the U.S. Constitution. It applies to most private non-agricultural employees and employers engaged in some aspect of interstate commerce. Decisions and regulations of the National Labor Relations Board (NLRB), which was established by the NLRA, greatly supplement and define the provisions of the act.
The NLRA establishes procedures for the selection of a labor organization to represent a unit of employees in collective bargaining. The act prohibits employers from interfering with this selection. The NLRA requires the employer to bargain with the appointed representative of its employees. It does not require either side to agree to a proposal or make concessions but does establish procedural guidelines on good faith bargaining. Proposals which would violate the NLRA or other laws may not be subject to collective bargaining. The NLRA also establishes regulations on what tactics (e.g. strikes, lock-outs, picketing) each side may employ to further their bargaining objectives.
State laws further regulate collective bargaining and make collective agreements enforceable under state law. They may also provide guidelines for those employers and employees not covered by the NLRA, such as agricultural laborers.
