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Irina-Kira [14]
3 years ago
8

23. In an interest rate swap between AAA who wants to convert fixed rate loan to floating-rate loan and BBB who wants to convert

floating-rate loan to fixed-rate loan: A) AAA Will pay floating rate and receive fix rate for the term of the swap contract B) AAA Will pays fix rate and receive floating rate for the term of the swap contract C) BBB Will pay floating rate and receive fix rate for the term of the swap contract D) BBB Will receive fix rate and pay floating rate for the term of the swap contract
Business
1 answer:
Sedaia [141]3 years ago
8 0

Answer:

d

Explanation:

i just got it right

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With _____, the emphasis is on helping the buyer realize the synergy of carrying all associated products of the same brand or ma
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3 years ago
Westford Corporation has $185 million dollars of interest-bearing debt outstanding at the end of fiscal 2014 year. In addition,
Ratling [72]

Answer:

B) 9.1%

Explanation:

Cost of debt is the interest rate paid by a company due to borrowing money; i.e  debt from investors.

$185million in debt is the face value of debt that Westford Corporation had and the $26 million dollars of interest expense is the cost of the debt in dollars;

First, find pretax cost of debt ;

Pretax cost of debt = (Interest expense / Face value of debt )*100

= (26,000,000/ 185,000,000 )*100

=0.1405 *100

= 14.05%

Next, use pretax cost of debt to find after-tax cost of debt;

After-tax cost of debt = Pretax cost of debt (1-tax)

= 14.05% *(1-0.35)

= 9.13%

Therefore, Westford's cost of debt capital is 9.1%

6 0
3 years ago
Why do you think setting goals can influence an employee's safety-related actions in the workplace?
Montano1993 [528]

Answer:

Setting goals helps with knowing what to focus on and what to do at work

This helps the employee do better at work because they know exactly what they are going for

Explanation:

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3 years ago
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To maximize profits, a firm should continue to increase production of a good until?
Butoxors [25]

To maximize profits, a firm should continue to increase production of a good until marginal revenue is equal to marginal cost.

According to the cost-benefit analysis, a company should continue to increase production until marginal revenue is equal to marginal cost. A manager maximizes profit when the value of the last unit of product (marginal revenue) equals the cost of producing the last unit of production (marginal cost)

What Is Marginal Revenue?

Marginal revenue is the increase in revenue that results from the sale of one additional unit of output.

What Is Marginal Cost?

In economics, the marginal cost is the change in total production cost that comes from making or producing one additional unit.

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7 0
2 years ago
Percy Company purchased 80% of the outstanding voting shares of Song Company at the beginning of 2014 for $406,000. At the time
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Answer:

since Percy Company's owns 80% of Song Company's stocks, we must use the equity method to record its investment in Song Company

Beginning 2014, investment in Song Company

Dr Investment in Song Company 406,000

    Cr Cash 406,000

2014, to record Song's net income

Dr Investment in Song Company 48,480

    Cr Investment revenue 48,480

2015, to record Song's net income

Dr Investment in Song Company 43,120

    Cr Investment revenue 43,120

2016, to record Song's net loss

Dr Loss on investment 45,760

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2014, to record Song's dividends

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2015, to record Song's dividends

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2016, to record Song's dividends

Dr Cash 29,040

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5 0
3 years ago
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