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:
$21.67
Explanation:
Exhibit 21-3 is attached with the answer .Please find it.
Total cost of production includes the fixed cost and variable cost. Fixed Cost remains constant as $500 in the exhibit, but the variable cost changes with each production level.
Cost of producing 60 units
Variable cost = $800
Fixed cost = $500
Total cost = $800+500 = $1,300
Product cost per unit = Total cost / numbers of unit = $1,300 / 60 = $21.67
Answer:
1. Dividends = It will be classified as <u>dividends.</u>
2. Rent Revenue = It will be classified as <u>revenues.</u>
3. Advertising Expense = It will be classified as an<u> expense.</u>
4. Stock holders pay cash into business = It will be classified as <u>Issuance of stock.</u>
<u></u>
Dividends are the share of revenue distributed to stockholders.
Revenues are income earned by the company.
Expense are the outflow of cash or bank payments for running the business.
Issuance of stock refers to collection of money by the company through issuing equity or preference shares.
Answer:
marketing manager
Explanation:
Marketing refers to all the activities that a company performs to convince customers to buy its products. They are the actions undertaken by a company to promote buying of its goods and services. These activities include advertising, sales promotions, direct sales, and product delivery to customers and other businesses.
The marketing manager is the senior officer responsible for the marketing functions of a company. He or she is the leader of the marketing department and coordinates everyday activities in that section. The marketing manager balances and selects the most efficient channel of promoting company products such as TV advertising, print media, or digital marketing.
Answer: $45000
Explanation:
Firstly, the operating asset will be calculated which will be:
Operating asset = Sales / Turnover
= 900,000/3
Operating assets = $300,000
Then, the net operating income will be: Return on investment × Operating assets
Net operating income = 300,000 × 15%
= 300,000*0.15
= $45,000
Therefore, Legume Division's net operating income last year is $45000
