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3 years ago

When sellers are willing to accept money in exchange for goods and services, money is acting as a?

1 answer:

4 0

Money is functioning as a medium of exchange. Money makes transactions easier, instead of having to barter for items, you can complete transactions through the usage of money.
Money serves three primary functions unit of account, store of value and most important medium of exchange.

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The risk-free yield curve is flat at 6% per annum. What is the value of an FRA where the holder receives LIBOR at the rate of 9%

Fudgin [204]

Answer:

c. $8.63

Explanation:

Missing word <em>"The forward LIBOR rate is 7%. All rates are compounded semiannually. A. $8.88 , B. $9.12 , C. $8.63 , D. $9.02"</em>

Principal = $1000, FRA Rate = 9 % per annum, LIBOR after 2 years = 7 % per annum, Compounding Frequency: Semi-Annual, Risk-Free Rate = 6 % per annum

The FRA matures 2 years or 24 months from now. Further, the Interest Rate that the FRA hedges will create an interest expense only at the end of the LIBOR loan period which is an additional 6 months after the 24 month period.

Hence, Exchange of Interest Expense at the end of 30 Months = (FRA Rate - LIBOR) x Principal (calculated on a semi-annual basis)

= (0.045 - 0.035) * 1000

= $10

Current Value of FRA = Present Value of Interest Expense at the end of the 30 Months Period

= 10 / [1+(0.06/2)]^(30/6)

= $8.6261

= $8.63

3 0

3 years ago

BMC is considering upgrading the sound systems in their theaters so that their patrons can get the full experience from surround

Luda [366]

Answer:

Fixed cost = $50,000

Marginal costs= $10,000

Explanation:

The costs of upgrading 12 screens = $170,000

The cost of upgrading 6 screens = $110,000

The difference between 12 screens At $170,000 and 6 screens at $110,000 represents the variable cost of 6 screens (12 - 6)

=$170,000 - $110,000 = 60,000

Variable costs for 6 screens = $60,000

Variable costs per screen = $60,000/ 6

=$10,000

Its cost $170,000 to upgrade 12 screens. variable costs per screen = $10,000

Fixed costs = $170,000 -( $10,000 x 12)

Fixed costs= $170,000 -$120,000

Fixed costs= $50,000

Marginal cost is the cost of upgrading one more screen, which is equivalent to variable costs for one screen

=$10,000

6 0

3 years ago

When a donor makes a gift in trust, who is considered the done?

BartSMP [9]

Answer:

yeet

Explanation:

5 0

3 years ago

A company pays its employees $3,850 each Friday, which amounts to $770 per day for the five-day workweek that begins on Monday.

liq [111]

Answer:

$3080

Explanation:

Calculation to determine what the amount of salaries earned but unpaid at the end of the accounting period is:

Salaries earned but unpaid at the end of the accounting period =3850-$770

Salaries earned but unpaid at the end of the accounting period =$3080

3 0

3 years ago

Harding corporation sells two products, standard and supreme. expected sales are 40,000 standard and 60,000 supreme. standard's

dolphi86 [110]

Contribution for Standard is $30 per unit and Supreme is $60 per unit, Thus if Fixed expenses are first divided between the two products on the basis of Contribution per unit, It can be calculated as below:

Fixed Expense Bifurcated on basis of Contribution per unit= 30:60

Which Comes to 1:2

Thus it will be bifurcated as $1200000 for Supreme and $600000 for Standard

Thus for Standard to break even it Requires to Sell the below no of units:

Break Even Point in units= $\frac{Fixed Expense}{Contribution per unit}$

Break Even Point in units= $\frac{600000}{30}$

Break even points in units=20000 units

7 0

3 years ago

When sellers are willing to accept money in exchange for goods and​ services, money is acting as a?

When sellers are willing to accept money in exchange for goods and services, money is acting as a?