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Yuri [45]
3 years ago
15

Suppose the spot rates for 1 and 2 years are s1=6.3% and s2=6.9% with annual compounding. recall that in this course interest ra

tes are always quoted on an annual basis unless otherwise specified. what is the forward rate, f1,2 assuming annual compounding?
Business
1 answer:
user100 [1]3 years ago
4 0

Since the problem assumes annual compounding, then the relationship of forward rate and spot rates is given in the equation:

f1,2 = ((s2^2 / s1) - 1)

Therefore,

f1,2 = ((1.069^2 / 1.063) - 1)

f1,2 = 0.075 = 7.5%

Forward rate is 7.5%.

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D) have customers who operate in many different parts of the country.

Explanation:

A lockbox is basically a bank mailing address where a company's clients can send their payments to. It is similar to mailbox that receives letters, only that this one receives checks and cash. The bank is in charge of opening the lockbox and depositing the cash and checks to the company's account, and reporting the information.

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3 years ago
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2 years ago
C.B. Management, Inc., had a franchise agreement with McDonald’s Corp., to operate McDonald’s restaurants in Cleveland, Ohio. Th
statuscvo [17]

Answer:

Who is the franchisor?  McDonald's

Who is the franchisee?  C.B. Management Inc.

In a franchise relationship, the <u>franchisee</u> is economically dependent on the <u>franchisor's</u> business system.

The franchise relationship is defined by the <u>contract</u>.

Did C.B. Management, Inc.’s failure to make a payment due more than thirty days earlier constitute a breach of the franchise contract?  YES

Why?  A) the contract provided McDonald's could terminate the contract when a payment was more than 30 days late.

Did the contract provide that the acceptance of a late payment waived McDonald's right to terminate for late payments? NO

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Did McDonald's act of accepting late payments in the past transform McDonald's right to terminate into a discretionary decision governed by the standard of good faith and fair dealing in the future? NO

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A court would likely find for <u>McDonald’s</u>

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3 years ago
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The company must create brand recognition and open new branches to access greater number of customers.

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Ofcourse having a brand recognition means that the company is oriented towards developing its image that plays a vital role in making choices and this is only possible if its products are widely available in the market by openning new branches and offering other branches to present your products. This will lead to access of product to greater amount of public and greater the number of people will choose Magnira's products.

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2 years ago
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Hunter-Best [27]

Answer:

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Preference Stocks Issues and Repurchases

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