Answer: Business calculation is mathematics used by industrial companies to record and maintain enterprise operations. Profit-making organizations use mathematics in accounting, catalog management, retailing, deals forecasting, and monetary analysis.
Answer:
The correct answer is letter "A": The EPBO is recorded in the accounts.
Explanation:
The Expected Postretirement Obligation (EPBO) is an estimation of the value of the benefits employees will receive upon retirement including all the time workers remained in the firm. This is merely a calculation and is not subject to any type of transaction to be recorded in the company's books. The EPBO is not related to workers' pensions.
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
Answer: C) noncompensatory rule
Explanation:
The non-compensatory rule is used to describe a situation where a person does not believe that the good traits of a product in one area will compensate for perceived bad traits in another area.
For Elton, the good trait is well known brand names and the bad trait is brand names that are not well known. Even if for the brand that is not well known, the price is lower, the discount is higher or the store is well known, these still will not be enough to compensate for the bad trait of not being well known.
