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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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The following events occurred for Favata Company:_________
Kipish [7]

Answer:

a.

Cash                                     16500 Dr

       Common Stock                  16500 Cr

b.

Cash                                    13500 Dr

    Notes Payable                     13500 Cr

c.

Equipment account                   1450 Dr

        Accounts Payable                 1450 Cr

d.

Land                            25000 Dr

     Cash                               2300 Cr

     Notes Payable               22700 Cr

e.

Equipment account                       9500 Dr

     Cash                                              2300 Cr

     Accounts Payable                        7200 Cr    

Explanation:

a.

The issuance of common stock against cash will increase the cash and the capital. So cash will be debited and capital (common stock) will be credited.

b.

The issuance of notes payable against cash increases liability and asset. The asset increase in cash will be debited and liability increase in notes payable will be credited.

c.

The purchase of equipment on account will increase liability and asset. The asset increase in form of equipment will be debited and the liability increase in form of accounts payable will be credited.

d.

The purchase of land will increase land and result in a debit to the land account. It is purchased for cash and a liability of notes payable. So both cash and the notes payable account will be credited as cash decreases (asset decrease in credited) and liability increases (liability increase is credited).

e.

The purchase of equipment will increase equipment account and result in  a debit to the equipment account. It is purchased for cash and a liability of accounts payable. So both cash and the accounts payable account will be credited as cash decreases (asset decrease in credited) and liability increases (liability increase is credited).

5 0
3 years ago
The steeper an isoquant is ​(labor measured on the horizontal axis​): A. the greater is the level of output. B. the greater is t
Volgvan

Answer:

C. the greater is the marginal productivity of labor relative to that of capital

Explanation:

An isoquant is a curve that shows all the combinations of inputs that yield the same level of output.

When adding one factor holding the other factor constant inevitably, leads to lower output levels, the isoquant must become steeper, as more capital is added instead of labour, and flatter when labour is added instead of capital. Returns to capital even decline.

8 0
3 years ago
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Maggie pays $50 a month for her health insurance policy. Maggie's $50 monthly payment is called a:
professor190 [17]
The answer is Premium .
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Which of the following statements accurately brings out the difference between a perfectly competitive industry and a monopolist
rewona [7]

Answer:

its d

Explanation:

industry has the freedom to raise prices

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4 years ago
What is the only sure way to know how much material can be covered in the amount of time allotted for the presentation?
ch4aika [34]

After you've finished the presentation, practice giving it.

<h3><u>Why is it crucial to use effective presentation methods?</u></h3>

Effective presentation methods are crucial because they enable you to convey concepts in a clear, succinct, and engaging manner. A strong public speaking ability enables you to authoritatively present your knowledge and makes you stand out at work. Therefore, in order to portray our best selves whenever we speak in public, we need to identify effective presentation tactics that work for us. Here are the best presentation skills you may learn in light of the many materials available on how to speak in public.

  • Maximum one central idea per presentation.
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  • Introducing your accent to others tactfully.
  • Deliver your idea in terms that your audience can grasp.
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Learn more about presentations with the help of the given link:

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