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3 years ago

Which of these is a group of producers working together to raise prices and

Business

1 answer:

kramer3 years ago

6 0

Answer:

B. a cartel

Explanation:

A cartel is a group of independent producers who collude to promote and protect their trade interests. Large producers in the same industry form cartels to manipulate supply and fix prices. Through the cartel, the large producers set prices that guarantee maximum profits for their members. The cartel eliminates price competition among the major producers in the industry.

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A 5% coupon, 18-year annual bond has a yield to maturity of 6.2%. Assuming the par value is $1,000 and the YTM does not change o

GenaCL600 [577]

Answer:

Price of Bond=$871.997

Explanation:

The price of a bond is the present value (PV) of the future cash inflows expected from the bond discounted using the yield to maturity.

Price of Bond = PV of interest payment + PV of redemption value

PV of interest payment

interest payment = 5%× 1,000 = $50

PV = A × (1- 1+r)^(-n)/r

r- 6.2%, n- 18, A- 50

PV = 50 × (1 -1.062^(-18))/0.062=533.341

PV of redemption

PV = FV × (1+r)^(-n)

PV = 1,000 × 1.062^(-18)= 338.655

Price of the stock = 533.3419 + 338.655

Price of Bond=$871.997

3 0

3 years ago

"Lizard National Bank purchases a three-year interest rate cap for a fee of 2 percent of notional principal valued at $50 millio

Bingel [31]

Answer: $500,000

Explanation:

An Interest Rate Cap is a Derivative Financial Instrument that works by paying the buyer for every year that the interest rate ceiling is exceeded.

Using the scenario above this is how it's works,

There is an Interest Rate Ceiling of 11%.

Any year that index which is this case is the London Interbank Official Rate (LIBOR) exceeds the 11%, the seller will pay the buyer the difference between the LIBOR and the Interest Rate Ceiling.

The Notional Principal is the amount on which the interest is based.

That means that in Year 1 with a LIBOR of 9 percent, the seller does not pay.

Second year LIBOR is 12 percent, the seller will pay 1% (12% - 11%)

Third year LIBOR is 13 percent, the seller will pay 2% (13% - 11%)

Lizard National Bank had to pay 2% of the notional Principal as a fee.

The amount that Lizard Receives from the seller is therefore,

= Total Received - Fees

= (1% + 2% - 2%) * 50,000,000

= 1% * 50,000,000

= $500,000

The total payments received by Lizard, including the initial fee, are $500,000.

4 0

3 years ago

On September 25, 2018 Colson Corp. sold 200,000 widgetrons to Cavanaugh Corp at $5 per unit. Half of the units were delivered on

mihalych1998 [28]

Correct options read:

A. $0

B. $500,000

C. $700,000

D. $1,000,000

Answer:

C. $700,000

Explanation:

Note only payments made on this sale that fall under the year 2018 is accounted for. Hence, we can make the following conclusions:

Total payment due: $5 per unit x 200,000 = $1,000,000.
Cavanaugh paid 40% of the contract price on September 25, 2018 = $400,000 (40% or 0.4 x $1,000,000).

Also since half of the units were delivered on November 15, 2018, and he agreed to pay the rest in equal installments, we expect him to pay half the $600,000 left:

units were delivered on November 15, 2018 = $300,000 paid.

Total payments in the year:

September 25, 2018; $400,000 + $300,000; November 15, 2018 = $700,000.

3 0

3 years ago

Select the correct answer.

brilliants [131]

Answer:

C. Thank you for meeting me last Monday and considering me for the assistant librarian position.

Explanation:

6 0

2 years ago

Trina's property is listed with Avalon Homes. The market is a little slow, and Trina's listing is a high-end home, where sales a

Liono4ka [1.6K]

Answer: Listing expires and terminated

Explanation: In the scenario above, Avalon homes only serves to aid the sale of Trina's property and as such will not be held liable for any offense if the property isn't sold within the listing period. Avalon homes isnt responsible for either the slow nature of market at the time or the fact that Trina's property belongs to the high end category which often takes even more time to get a buyer for. Therefore, once the contract period of Trina's listing is reached, the listing expires and it's terminated unless another listing contract is struck between both parties.

8 0

3 years ago