Party A has agreed to exchange $1 million U.S. dollars for1.21 million Canadian dollars. This agreement is called a swap.
<h3>
What is swap?</h3>
An agreement for a financial exchange known as a "swap" calls for one of the two parties to commit to making a given number of payments at a specified frequency in exchange for the other party making a different set of payments. These flows often react to interest payments based on the swap's nominal amount.
<h3>
What is the advantage of swap contract?</h3>
Through the use of swap, one can gain access to new financial markets for funding by analyzing the comparative advantage that the other party has in that market. As a result, exchange fully utilizes the comparative advantage that parties possess. As a result, money can be collected at a lower cost from the best source available.
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A credit union is a non-profit financial intermediary.
Monetary policy is the best way to influence economic growth.
Appeared as a leader of the Chicago school of financial economics, Friedman burdened the importance of the quantity of cash as a device of government coverage and a determinant of enterprise cycles and inflation. His monetarism principle proposed that cash delivery modifications have immediate and long-term effects.
Milton Friedman became a U.S. economist and Nobel laureate known as the most influential propose of loose-marketplace capitalism and monetarism in the 20th century.
The monetarist principle is an monetary concept that contends that changes in cash deliver are the maximum good sized determinants of the charge of monetary increase and the behavior of the commercial enterprise cycle.
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Answer:
The Answer is as follows;
Explanation:
Dividend on preferred stocks=$10*7.5%=$.075
Transaction Costs=$1
Total financing Cost=$1.75
Which is 17.5% (1.75/10)
The market price is not relevant for company's cost of financing. Therefore we have taken dividend payable on face value and transaction costs of issue for purpose of determination of financing cost.
Answer:
$23.32
Explanation:
We have the given information as below:
Defective content average = 0.04
Number of units inspected per hour = 53
Hourly rate = $10
Cost involved in final product testing = $11
Now to determine if the inspector position is eliminated, we will need to calculate the number of defective products:
defective products = Defective content average × Number of units inspected per hour
defective products = 0.04 × 53 = 2.12
the hourly cost of defects = defective products × Cost involved in final product testing
The hourly cost of defects = 2.12 × $11 = $23.32
