Answer:
The situation is called insolvency. insolvency is refer to the situation when debtor is unable return its debt. The same is happened in the given situation. In the above case due to not paid by manufacturing unit, bank is unable to pay to depositor.
Insolvency is refer to that critical condition when debtor unable to pay amount to depositor. In the above given case even if bank want to sell its all assets it cannot cover its liabilities.Explanation:
Bea Moran wants to establish a long derivatives position in a commodity she will need to acquire in six months. Moran observes that the six-month forward price is 45.20 and the six-month futures price is 45.10. This difference most likely suggests that for this commodity: futures prices are negatively correlated with interest rates.
This is further explained below.
<h3>What are interest rates?</h3>
Generally, the fraction of a loan that is charged as interest to the borrower is often stated as a yearly percentage of the loan outstanding.
"lower interest rates encourage people to spend money on house upgrades"
In conclusion, Bea Moran would want to construct a long derivatives position in a commodity that she will need to buy in a little over half a year's time. Moran notes that the price of the six-month forward contract is now at 45.20, while the price of the six-month futures contract is currently at 45.10. Because of this disparity, it is quite probable that the prices of futures contracts for this commodity have an inverse relationship with interest rates.
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Answer:
WACC = Ke(E/V) + Kd(D/V)(1-T)
WACC = 16(100/155) + 10(55/155)(1-0.33)
WACC = 10.3226 + 2.3774
WACC = 12.7%
Explanation:
WACC is a function of cost of equity and proportion of equity in the capital structure plus after-tax cost of debt and proportion of debt in the capital structure. Since debt-equity ratio is 0.55(55/100), it implies that the total value of the firm is 55 + 100 = 155. Thus, debt proportion will be 55/155 while equity proportion is 100/155.
Answer:
e. $12,200
Explanation:
In order to calculate the ending cash balance, we must first assess the net increase or net decrease in the balance shown below:
Net Cash flow provided by Operating activities $34,000
Net Cash flow used in Investing activities -$12,400
Net Cash flow used in Financing activities -$15,600
Net increase (decrease) in cash for the year is $6,000
Now the ending balance of cash would be
= Net increase in cash + beginning cash balance
= $6,000 + $6,200
= $12,200
The statement of partners' equity shows each partner's beginning capital balance, additional investments, allocated income or loss, partners' withdrawals(expenses, withdrawals), and ending capital balance.
<h3>What is
capital balance?</h3>
Capital Balance refers to the principal balance of a Loan at any point in time to which the Servicer applies the relevant interest rate at which interest on that Loan accrues.
Simply add up the company's total current assets and subtract the total current liabilities from that total. The result is the amount of working capital available to the company at that time.
The capital balance is the amount borrowed less the future interest rate paid in monthly installments. It is the sum you must pay if you want to settle the contract.
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