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4 years ago

Should be subtracted from the sales price per unit to compute the unit contribution margin.

1 answer:

4 0

All variable costs s<span>hould be subtracted from the sales price per unit to compute the unit contribution margin.</span>

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A subprime or predatory loan a. Is now prohibited under Dodd-Frank b. Is a loan with higher interest rates and large prepayment

lara [203]

Answer:

The correct answer is letter "B": Is a loan with higher interest rates and large prepayment penalties.

Explanation:

Subprime or predatory loans are those with higher interest rates usually provided to individuals with negative credit reports. The likelihood that the borrowers will default the payments pushes subprime lenders to increase the interest rates.

They are named subprime because the interest rate they provide is higher than the U.S. prime rate set by the Federal Open Market Committee of the Federal Reserve Bank. The current prime rate in the U.S. is 5.25%.

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3 years ago

Performance goals are used to

natulia [17]

They are used to measure productivity

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4 years ago

A stock is trading at $50. You believe there is a 60% chance the price of the stock will increase by 10% over the next 3 months.

Ber [7]

Answer:

The answer is $475.

Explanation:

We have the writer of the put contract has the obligation to buy the share at $50 ( as the put is the at-the-money put) in 3 months time. The writer of the put also has received the premium at $650 for assuming the obligation to buy at the predetermined price.

Thus, the expected returns is calculated as below:

-[0.60 x 100 x Max[$0,$50 - ($50)(1.1)] + 0.30 x 100 x Max[$0,$50 - ($50)(0.95)] + 0.10 x 100 x Max[$0,$50 - ($50) (0.80)] + $650 = - [0.6 x 100 x 0 + 100 x 0.3 x 2.5 + 0.1 x 100 x 10] + 650 = $475.

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3 years ago

ames Corporation is planning to issue bonds with a face value of $508,000 and a coupon rate of 6 percent. The bonds mature in 15

tatyana61 [14]

Answer:

Explanation:

a. Market rate of interest 4 %

Present value of the bonds = Semiannual coupon x PVIFA 2%,n=30 + Par Value x PVIF 2%, n=30 = $ 508,000 x 6% x 1/2 x 22.3965 + $ 508,000 x 0.5521 = $ 341,322.66 + $ 280,466.80 = $ 621789.46

Issue Price $ 621,790

b. Market Interest Rate : 6%

Present value of the bonds = $ 508,000 x 6% x 1/2 x 19.6004 + $ 508,000 x 0.4120 = $ 298,710 + $ 209,296 = $ 508,000

Issue Price $ 508,000

c. Market interest rate : 8.5 %

Present value of the bonds = Semiannual coupon x PVIFA 4.25%, n=30 + Par Value x PVIF 4.25%, n=30 = $ 508,000 x 6% x 1/2 x 16.7790 + $ 508,000 x 0.2869 = $ 255,711.96 + $ 145,745.20 = $ 401,457.16

Issue Price $ 401,460

4 0

4 years ago

Vertical integration is defined as one company controlling every phase of the business from raw materials to transportation, man

kicyunya [14]

Answer:

a) true

Explanation:

There are basically two types of integration which are categorized below:

1. Horizontal integration

2. Vertical integration

In horizontal integration, the company acquired another company that is doing the same type of business whereas, in the vertical integration, the company acquires another company supply chain i.e from raw material, manufacturing, distribution, retail and after-sale services.

5 0

3 years ago