Answer:
THE FISCAL YEAR END.
Explanation:
Selection of an inventory costing method by management does not usually depend on THE FISCAL YEAR END
Answer
The answer and procedures of the exercise are attached in the following archives.
Explanation
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
Answer:
b. Borrow another 3 billion dollars from brokers and use this additional money to trade on the same trading strategy.
Explanation:
There is 40% return on the equity investment which means if $1 billion are invested then there can be $0.4 billion profit. LTCM can borrow funds and could earn from investing in equity investment. The return on equity investment is higher than the bonds so it should trade on the same strategy.