The answer to this question is goes down "it is the right thing to do". In the company, many time during the decision-making time, the<span> moral case for why a company should actively promote the betterment of society and act in a manner benefitting all its stakeholders go down or boil down to it is the right thing or the good thing to do.</span>
ANSWER: Consumer Price Index (CPI)
The most well-known indicator of inflation is the Consumer Price Index (CPI), which measures the percentage change in the price of a basket of goods and services consumed by households.
Answer:
c. lower the risk of supply disruption
Explanation:
Having multiple suppliers is always a good sourcing strategy, as it <u>minimizes the risk of supply disruption</u>. If one of the suppliers fails to maintain the contract due to various reasons (bad business operating), the risk is dispersed among a few suppliers, so there is the contingency principle applied.
This way, the supply chain never gets disrupted.
This is a question only you and someone who is taking that course can answer. I would need more information.
Answer:
The loss of the financial institution is $413,000
Explanation:
Let's say that after 3 years the financial institution will receive:
0.5 * 10% of $10million
= 0.5 * 0.1 * 10000000
= $500,000
Then, they will pay 0.5 * 9% of $10M
= 0.5 * 0.09 * 10000000
= $450,000
Therefore, their immediate loss would be $500000 - $450000
= $50000.
Let's assume that forward rates are realized to value the rest of the swap.
The forward rates = 8% per annum.
Therefore, the remaining cash flows are assumed that floating payment is
0.5*0.08*10000000 =
$400,000
Received net payment would be:
500,000-400,000= $100,000. The total cost of default is therefore the cost of foregoing the following cash flows:
Year 3=$50,000
Year 3.5=$100,000
Year 4 = $100,000
Year 4.5= $100,000
Year 5 = $100,000
Discounting these cash flows to year 3 at 4% per six months, the cost of default would be $413,000
