Answer:
B. $725,000
Explanation:
The expected value for the contract will be :
10% ($725,000 + 12,000 + 12,000 ) + 30% ($725,000 + 12,000 ) + 25% ($725,000 ) + 20% ($725,000 - 12,000 ) + 15% ($725,000 - 12,000 - 12,000 )
= $ 74,900 + $221,100 +$181,250 + $142,600 + $105,150 = $725,000
Marlboro constructions expected value of the contract is 725,000 based on the given probability estimates of contract completion.
Answer:
2129 futures contracts to be sold
Explanation:
Asset worth = $310 million
Asset duration = 12 years
liabilities = $248 million
Liabilities duration = 5 years
T-bond futures contracts = 104-20 (30nds)
% of assets = 310 / 248 =
<u>Determine how many futures contracts Village Bank will sell to fully hedge the balance </u>
Number of Contracts = -[Assets * (Asset Duration – (Liabilities Duration * % of Assets) / (Duration * Contract Value)]
= - [ 310 * ( 12 - ( 5 * (310/248)) / ( 8 * ( 104 + ( 20/30)) ]
= - [ 310 * ( 12 - 6.25 ) / ( 8 * 104.6667 ) ]
= - [ 310 * 5.75 / 837.3336 ]
= - 2.12878 * 1000
= 2128.78 ≈ 2129 ( number of futures contracts to be sold )
Answer:
(b.) Isabel will have a judgment entered in her favor
Explanation:
Under the Rules of the court Josh's action is referred to as Default of Appearance. Isabel is the Complainant while Josh is the Defendant.
It is the law that where a Defendant fails to appear before the court where there is a proof of service of the summons on him or her, Complainant may apply to the Judge for a judgement in respect of the claim on the summons to be entered in his or her favor against the Defendant.
Therefore, in the instance case at hand, Isabel will have a judgment entered in her favor for failure of Josh to appear before the court.
Option (a) is not the answer because Isabel does not need to file an amended complaint because Isabel did not ask the court for any amendment of her complaint. Isabel can only file an amended complaint if she intends to change her complaint against Josh.
Option (c) is not also the answer because Josh chooses to ignore the summons served on him. If for instance Josh did not get the summons served on him or the judge is of the opinion that Josh was not properly served, then the court can order that Josh must be served with a second summons.
Option (d) is also not the answer because Josh cannot have a judgment entered in his favor because he is the person who defaulted appearance before the court. A party who is in default of appearance cannot have judgment entered in his favor.
The GDP will lose value and decrease due to not charging for services?
Answer:
10.70%
Explanation:
NPER = 12*2 = 24
PMT = 40
PV = -820
FV = 1000
Pretax Cost of Debt = Rate (NPER, PMT, -PV, FV) * 2
Pretax Cost of Debt = Rate(24, 40, -820, 1000) * 2
Pretax Cost of Debt = 0.0535 * 2
Pretax Cost of Debt = 5.35% * 2
Pretax Cost of Debt = 10.70%
