Answer:
c. $8.63
Explanation:
Missing word <em>"The forward LIBOR rate is 7%. All rates are compounded semiannually. A. $8.88
, B. $9.12
, C. $8.63
, D. $9.02"</em>
Principal = $1000, FRA Rate = 9 % per annum, LIBOR after 2 years = 7 % per annum, Compounding Frequency: Semi-Annual, Risk-Free Rate = 6 % per annum
The FRA matures 2 years or 24 months from now. Further, the Interest Rate that the FRA hedges will create an interest expense only at the end of the LIBOR loan period which is an additional 6 months after the 24 month period.
Hence, Exchange of Interest Expense at the end of 30 Months = (FRA Rate - LIBOR) x Principal (calculated on a semi-annual basis)
= (0.045 - 0.035) * 1000
= $10
Current Value of FRA = Present Value of Interest Expense at the end of the 30 Months Period
= 10 / [1+(0.06/2)]^(30/6)
= $8.6261
= $8.63
<u>Solution and Explanation:</u>
The given data is as follows:
Error rate = 4%, per hour payment of inspector = $8, inspection of units = at the rate of 49 per hour, cost = $9 per unit
The problem can be solved as considering an opportunity to have an improvement of 4% in the quality.
In case inspector is not hired then it will cost .04 multiply 9= $.3.6 per unit and in case the inspector is hired it will cost $ 0.163 approx.(8 divided by 49).
Therefore, on comparison, it is recommended to hire the inspector.
Answer:
c. $5million
Explanation:
Net investment = Gross investment - Depreciation
Also, Net investment equals investment at the beginning of the year minus investment at the end of the year
Net investment = $15million - $10million
Net investment = $5million
Therefore, net investment during the year equals $5million
Answer:
<em>Total cash flow to stockholders 13,320</em>
<em />
Explanation:
We should consider the actual cash paid by the firm in favor of the stockholders. Net income doesn't represent cashflow is the amount earned by the company but a portion of it is reinvested or hold by the firm. What it matter for cashflwo arethe cash dividends and treasury stock as these are actual cashflow in going into the stockholders pockets
from dividends 4,535
from stock repurchase <u> 8,785 </u>
<em>Total cash flow to stockholders 13,320</em>
Answer:
Did the technology push the changes in the world, or was it the other way around? What evidence is opinion based upon or how did you draw your conclusions?
In my opinion the world started to change during the 1970s when Steve Jobs introduced the personal computer. Before him, only huge corporations could afford computers since they were huge and costed millions. Since then, information technology (IT) has increased in gigantic steps and when the internet was available for public use, the world as we know it changed.
When the world was struggling again during the great recession, my hero came back and changed the way IT industry again with the iPhone and the whole app culture. I am a little over 25, and I can tell that everything was very different when I was a small kid. You actually needed to read a newspaper and use encyclopedias (very large books).
Now everything is on the web and now most of us are even working using the internet. In just seconds we know what is happening in China or any other country in the world, while before all we heard about China was that were many Chinese and they were communists. IT has enabled whole new industries that boost the economy much more than any other manufacturing business ever had. The world would be a much different place if it wasn't for the Apple I, the internet or the iPhone.
