Answer: 7.24%
Explanation:
From the question, we are told that:
3 years treasury securities have an interest rate = 1.92%
10 years treasury security has an interest rate = 5.62%
Let the 7 year treasury security interest in 3 years be represented by z.
Based on the expectation theory
( 1+1.92%)^3 × (1 + z%)^7 = (1 + 5.62%)^10
(1+0.0192)^3 × (1 + z%)^7 = (1 + 0.0562)^10
(1.0192)^3 (1 + z%)^7 = (1.0562)^10
1.05871(1 + z%)^7 = 1.72767
Divide both side by 1.05871
(1 + z%)^7 = 1.72767/1.05871
(1 + z%)^7= 1.6319
1 + z% = 1.6319^1/7
1 + z% = 1.6319^0.1429
1 + z% = 1.0724
z% = 1.0724 - 1
z% = 0.0724
We then convert the decimal to percentage
z = 7.24%
The market believes that 7-year Treasury securities will be yielding 7.24% in 3 years .
Answer:
a) Financial Statements
b) Limited Liability
Explanation:
a) The reporting of financial conditions at the corporation so that it can be evaluated, is the aim of preparing <em>financial statements. </em>Financial statements<em> </em>are periodic reports prepared monthly or annually to show the financial health of a company. They are made up of the statement of profit or loss, statement of financial position, cash flow statements and statement of changes in equity.
b) Legal protections for shareholders so that they are not taken advantage of is the purpose of limiting the liability of shareholders. Limited liability relates to a shareholder's financial liability being limited to a fixed amount not exceeding his investment in the company or partnership. Nevertheless every shareholders is liable for his own actions personally.
Answer:
Instructions are listed below.
Explanation:
Giving the following information:
The standard labor cost for a motor tune-up is given below:
Standard Hours= 2.5
Standard Rate= $33
Standard Cost Motor tune-up= 82.5
The shop supervisor recalls that 58 tune-ups were completed during the week, and the controller recalls the following variance data relating to tune-ups:
Labor rate variance $ 80 F
Labor spending variance $ 118 U
1) Direct labor efficiency variance= (SQ - AQ)*standard rate
Direct labor efficiency variance= (58*2.5 - actual quantity)*33
118= (145 - AQ)*33
118= 4,785 - 33AQ
-4,667= -33AQ
141.42= Actual Quantity
2) Direct labor price variance= (SR - AR)*AQ
80= (2.5 - Actual rate)*141.42
-273.55= -141.42AR
1.92= Actual rate
My teacher said that it is true
