Answer:
You will end up with 1% or 100 basis points + LIBOR floating rated loan
Explanation:
You will have to pay interest on loan at a fixed rate of -5%
transaction with the Swap dealer
you will have to pay dealer LIBOR that is -LIBOR
(Payment is to be outflow so the negative sign is used)
Dealer will pay and you will receive fixed +4%
Net interest = -5%-LIBOR+4%
-1%- LIBOR
So the Net effect is that you will end up with 1% or 100 basis points + LIBOR floating rated loan
Answer:Explanation:
simple problems
a. it could bring about issues of traffic congestion
b. it could also cause pollution problems in the area.
intermediate problem
a. the car manufacturer may not be allowed to site such a project of large scale as this in the region
b. the region may not be an economiCally favourable place. the car manufacturer has to check this before going ahead.
complex problem
a. getting suitable workforce with required skills to work
b. Getting storage space for vehicles that have been manufactured.
Answer:
False
Explanation:
Cost
This is simply defined as a payment of cash or the commitment to pay cash in the future for revenues purpose. E.g. The cash used to purchase a tractor, is the cost of the tractor.
Conversion costs
This is simply regarded as direct materials, direct labor, and factory overhead costs that can be selected together or grouped together for analysis and reporting. It consist of direct labor in factory overhead costs.
The Equation for Conversion cost is simply = Direct Labor Cost + Manufacturing Overhead Cost.
While the Equivalent Units of Production = Number of Units Transferred to the next department + Equivalent Units in Ending Works in Process Inventory.
The equation for Equivalent units of production for conversion cost is given below: Units completed and transferred out + Equivalent units in ending work in process for conversion cost.
The equation for Cost per equivalent unit for conversion cost is simply =
(conversion cost of beginning work in process + conversion cost added during the period)/ Equivalent units of production for conversion cost.
an example of overconfidence would be: Joe makes a stock price prediction and believes that there is only a 5% chance that his estimate is wrong; overlooking recent articles about the bad financial health of the business.
Buying stocks without any prior knowledge in finance would provide people with 50% rate of success. Good stock traders usually could improve their success rate up to 70% while success rate of 95% is very unlikely. Especially if the financial information showed a bad sign. The fact that Bill still put his money on the company's stock indicates that he is overconfident.
Answer:
$133,000 decrease
Explanation:
The computation of the impact on the operating income is shown below:
Sales for the year $1,052,000
Less:
Variable cost -$862,000
Contribution margin $190,000
Less:
Fixed cost for 30% of $190,000 -$57,000
Impact on the operating income $133,000
This amount reflects the decrease in the operating income
