Party A has agreed to exchange $1 million U.S. dollars for1.21 million Canadian dollars. This agreement is called a swap.
<h3>
What is swap?</h3>
An agreement for a financial exchange known as a "swap" calls for one of the two parties to commit to making a given number of payments at a specified frequency in exchange for the other party making a different set of payments. These flows often react to interest payments based on the swap's nominal amount.
<h3>
What is the advantage of swap contract?</h3>
Through the use of swap, one can gain access to new financial markets for funding by analyzing the comparative advantage that the other party has in that market. As a result, exchange fully utilizes the comparative advantage that parties possess. As a result, money can be collected at a lower cost from the best source available.
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Answer:
The debt to equity mix = 74.65% - 25.35%
Explanation:
The computation of the debt to equity mix is shown below:
Debt is
= Mortgages + Bond
= $18 + $35
= $53 million
And, the Equity is
= Retained earnings + Cash in hand
= $5 + $13
= $18 million
Now
Percentage of debt financing
= $53 ÷ ($53 + $18)
= 74.65%
And, percentage of equity financing is
= $18 ÷ ($53 + $18)
= 25.35%
And, finally
The debt to equity mix = 74.65% - 25.35%
Answer:
125 birdhouses per month
Explanation:
Barney=150 birdhouses
Total product=150 birdhouses
If Barney hires Fred
Fred =125 birdhouses
Total product=150+125
=275 birdhouses
Marginal product can be defined as a change in output as a result of a change in variable inputs
It can be calculated as follows
Marginal product=change in total product/change in variable inputs
=275-150/1
=125/1
=125 birdhouses per month
An increase from 16k to 20k is a 20%increase proportionate to production