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Ostrovityanka [42]
3 years ago
8

Company X issues variable-rate debt but wishes to fix its interest rates because it believes the variable rate may increase. Com

pany Y has a fixed-rate bond but is looking for a variable-rate interest because it assumes the interest rates may decrease. The two companies agree to exchange cash flows. Such an arrangement is called:
Business
1 answer:
Gala2k [10]3 years ago
3 0

Answer: c) a swap

Explanation:

A Swap is a type of Derivative that involves two parties exchanging the cash-flows or even liabilities that they are getting from their different instruments.

Traditionally, Swaps are usually for cash-flows based on debt instruments like bonds, but as a derivative, the underlying instrument can be anything in the financial market.

Company X and Y exchanging cash-flows is a Swap.

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A buyer is concerned about making changes to a historic property he wants to purchase. Who should the buyer consult?
Andreas93 [3]

Answer:

real estate agent

Explanation:

A real estate agent is seen as a licensed professional , whose job or duties is to arrange real estate transactions, putting buyers and sellers together and acting as a representatives in negotiation. this negotiations and purchase are basically made for property procurement.

4 0
3 years ago
Which of the following statements regarding an internal rate of return analysis is false?
gulaghasi [49]

Answer: Option D

Explanation: Internal rate of return ,denoted as IRR, is the rate at which the net present value of a capital investment is zero. It is the rate at which the cash flows of the investment are discounted back to calculate the present value.

While, required rate of return is that return which an investor expects to achieve over time from a capital project.

Thus, one would only select a capital project only if the NPV of a project is positive which can only happen when the return on investment, that is, IRR, is greater than cost of capital, that is, required rate of return.

4 0
3 years ago
Seven years ago, Goodwynn & Wolf Incorporated sold a 20-year bond issue with a 14% annual coupon rate and a 9% call premium.
iogann1982 [59]

Answer:

14.82%

Explanation:

initial investment = $1,000

annual coupon = $140 (7 coupons received)

selling price = $1,090

the easiest way to determine the realized rate of return is to use a financial calculator or excel spreadsheet, and calculate the IRR: 14.82%

the cash flows are:

  • -1000
  • 140
  • 140
  • 140
  • 140
  • 140
  • 140
  • 1230

5 0
2 years ago
​the employees of a company feel that rewards are fairly allocated. this illustrates _____.
Wittaler [7]
<span>Distributive Justice</span>
8 0
3 years ago
Presented below is information related to Bobby Engram Company.
Natasha_Volkova [10]

Answer:

A. $ 98,210

B1. Cost to retail percentage 60%

B2. Cost to retail percentage 65.73 %

B3. Cost to retail percentage 58 %

B4. Cost to retail percentage 63.33 %

Explanation:

A. Computation for the ending inventory at retail

Inventory at Retail

Beginning Inventory $ 100,000

Purchase ( Net ) $ 200,000

Net Markup $ 10345

Less Net Markdown ($26,135)

Less Sales Revenue ($ 186,000)

Ending Inventory $ 98,210

Therefore the ending inventory at retail will be $ 98,210

B1) Computation for a cost-to-retail percentage

Excluding both markups and markdowns.

Cost to Retail Percentage

Excluding both Markup and Markdown

Cost Retail

Beginning Inventory $ 58,000 $ 100,000

Purchase (Net) $ 122,000 $ 200,000

Total $ 180,000 $ 300,000

Cost to retail percentage = $180,000/$300,000 Cost to retail percentage = 60%

B2. Computation for a cost-to-retail percentage Excluding Markups but Including Markdown

Cost Retail

Beginning Inventory $ 58,000 $ 100,000

Purchase (Net) $ 122,000 $ 200,000

Less Mark down ($ 26,135)

Total $ 180,000 $273,865

Cost to retail percentage= $180,000 /$ 273,865*100

Cost to retail percentage= 65.73 %

B3. Computation for a cost-to-retail percentage Excluding Markdowns but including Markups

Cost Retail

Beginning Inventory $ 58,000 $ 100,000

Purchase Net $ 122,000 $ 200,000

Add Net Markups $ 10,345

Total $180,000 $ 310,345

Cost to retail percentage = $180,000 / $ 310,345*100

Cost to retail percentage = 58 %

B4. Computation for a cost-to-retail percentage Including both Markups and Markdown

Cost Retail

Beginning Inventory $58,000 $100,000

Purchase Net $ 122,000 $ 200,000

Net Markups $ 10,345

Less Net Mardown ($26,135)

Total $ 180,000 $ 284,210

Cost to retail percentage = $ 180,000/ $ 284,210 × 100

Cost to retail percentage = 63.33 %

Therefore the cost-to-retail percentage are:

B1. Cost to retail percentage 60%

B2. Cost to retail percentage 65.73 %

B3. Cost to retail percentage 58 %

B4. Cost to retail percentage 63.33 %

8 0
2 years ago
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