Answer:
Total dollar Annual Cost = $300,000
Explanation:
- Total loan Commitment = 9000000
- Borrowed Fund (Used Portion) = 6000000
- Unused Portion (9000000 - 6000000) = 3000000
- Annual Commitment Fee for unused Portion = 0.50%
- Commitment Fee = 3000000 x 0.05% = 15000
- Borrowed Fund (Used Portion) = 6000000
- Interest Rate (3.25% + 1.5%) = 4.75%
- Interest Cost (6000000 x 4.75%) = 285000
Total dollar Annual Cost (15000 + 285000) = $300,000
Answer:
Scientific Management.
Explanation:
Scientific management is a approach to implement science in the management activities to improve economic efficiency and productivity of the industry. It was first introduced by Mr Frederick Taylor in 1911. These new scientific principle have replaced conventional hit and trail method and rule of thumb method which made work easier for management and worker to perform well. Scientific management have also brought co-ordination between worker and manager.
There are four principle of scientific management by Mr Frederick Talor:
- Replacing orthodox rule of thumb method with scientific method work.
- Instead of using "Hit and trail" approach for worker recruitment, scientific approach need to be implemented as selecting, training and developing worker to work effeciently.
- There should be proper coordination between worker and manager to get smooth workflow.
- Work should be equally divided between managers and worker to motivate and get optimum productivity.
Answer:
Discount rate is the correct answer.
Explanation:
There are two different definitions of the discount rate. It refers to the commercial banks and other institutions for the loan which they have taken from the federal reserve bank via the discount window loan process. The interest rate which is used in the discounted cash flow analysis for determining the present value of future cash flows is the other definition of the discount rate.
Answer:
The correct answer is letter "B": Expected return.
Explanation:
Expected return is the return an investor expects from an investment given the investment's historical return or probable rates of return under different scenarios. To determine expected returns based on historical data, an investor simply calculates an average of the investment's historical return percentages and then, uses that average as the expected return for the next investment period.
In the example, the expected return would be:
<em>Expected return </em><em>= (return in a good economy + return in a poor economy)/2</em>
<em>Expected return </em><em>= (13% + 4%)/2</em>
<em>Expected return </em><em>= </em><em>8,5%</em>
Answer: a. Dynamic forecasting
Explanation:
Dynamic forecasting has to do with when the forecasted value or the predicted value of the dependent variable that us lagged in a research is used rather than using the actual value.
The dynamic forecasting technique fits situations where more recent events carry greater influence.