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nexus9112 [7]
3 years ago
5

ABC International can borrow $4,000,000 at LIBOR plus a lending margin of 0.65 percent per annum on a three-month rollover basis

from Barclays in London. Three month LIBOR is currently 5.5 percent. Suppose that over the second three-month interval LIBOR falls to 5.0 percent. How much will ABC pay in interest to Barclays over the six-month period for the Eurodollar loan?
A. $50,000B. $100,000C. $118,000D. $120,000
Business
1 answer:
Anastaziya [24]3 years ago
4 0

Answer:

C) $118,000

Explanation:

ABC International will have to pay the following interests:

  • for the first three month period:

$4,000,000 x (5.5% + 0.65%) x 1/4 = $61,500

  • for the second three month period:

$4,000,000 x (5% + 0.65%) x 1/4 = $56,500

total interest for the 6 month period = $61,500 + $56,500 = $118,000

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For this question, assume that the Phillips curve equation is represented by the following: πt − πt−1 = (m + z) − αut. Which of
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3 0
3 years ago
Assume that the following events occurred at a division of Generic Electric for March of the current year:
Crank

Answer:

$192 million; $153.60 million; $38.40 million

Explanation:

Given that,

Direct material purchased = $80 million

Direct labor costs = $51 million

Manufacturing overhead = $77 million

Percent of the work-in-process completed = 80%

(1) Transfers-In:

= Direct materials + Direct labor costs + Manufacturing overhead

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= $38.40

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2 years ago
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