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Delicious77 [7]
3 years ago
6

Citibank need to borrow $1 million for 6 months starting in 2 years. Citibank is concerned about the interest rate would like to

lock in the interest rate it pays by going long an FRA with Bank of America. The FRA specifies that Citibank will borrow at a fixed rate of 0.04 for 6 months on $1 million in 2 years. If the 6 months LIBOR rate proves to be 0.01. Then to settle the FRA, what is the cash flow to Citibank at the end of 2 years
Business
1 answer:
Shkiper50 [21]3 years ago
3 0

Answer:

"$ 15,000" is the correct solution.

Explanation:

The given values are:

Agreed fixed rate,

= 0.04

LIBOR rate,

= 0.01

No. of borrowing months,

= 6

National amount,

= 1000000

Now,

The net payment will be:

= National \ principal*(Floating \ rate - Fixed \ rate)\times \frac{No. \ of \ months}{12}

On substituting the above values, we get

= 1000000\times (0.01-0.4)\times \frac{6}{12}

= 1000000\times (-0.03)\times 0.5

= -15,000 ($)

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IrinaVladis [17]

Answer:Ordinary Business income loss =-$20,500.

Explanation:

Ordinary business Expenses are the expenses generally accepted according to the  industry standards associated with running of a business.

Here, the ordinary business expenses for Zoom  include

cost of good sold= $19,-000

employee wages= $17,000

rent expense = $11,500 and therefore will be deducted from its sales revenue.

charitable contributions and qualified dividends, do not cut across all industries and so are not classified under Ordinary Buisness expences.

Ordinary Business income loss = Sales revenue - cost of good sold, -employee wages- rent expense.

$27,000- $19,000-$`17,000-$11,500= -$20,500. to be reported on its X4 return

6 0
3 years ago
Teller Co. is planning to sell 900 boxes of ceramic tile, with production estimated at 870 boxes during May. Each box of tile re
ELEN [110]

Answer:

The correct answer is $2,610.

Explanation:

According to the scenario, computation of the given data are as follow:-

We can calculate the the direct labor cost by using following formula:-

Direct labor hour required= Estimated production × Direct labor hour

= 870 × 1÷4 =217.5 hours

Direct labor cost = Direct required labor hour × Rate of labor per hour

= 217.5 hours × $12

= $2,610

According to the analysis, $2,610 is the total amount to be budgeted for direct labor.

4 0
3 years ago
Marvin Gaye's song "Gotta Give It Up" was protected by ___________ .
monitta

Answer:

d. not selected option d copyright

6 0
3 years ago
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Kellyanne hired Joshua from Southwest University. He was an amazing employee and exceeded all her expectations. The next year, s
Anastasy [175]

Answer:

Representativeness heuristic bias

Explanation:

Representativeness heuristic bias occurs when there are similar events whose probability of occurrence is assumed to be the same. People mistakenly assume there is a close relationship between the two events than there really is.

For example of John is a lawyer, he is judged to be a lawyer because of expression of various traits associated with lawyers.

Kellyanne hired Joshua from Southwest University. Because of his outstanding performance, it is assumed that other considered from Southwest University will also perform outstandingly.

This is a form of representativeness heuristic bias

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3 years ago
______ is the process of creating a clear, distinctive, and desirable understanding of the product in the consumer's mind relati
Drupady [299]

Answer:

Positioning

Explanation:

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3 years ago
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