Answer:
The answer is option A, There is more credit risk when the yield curve is upward sloping than when it is downward sloping
Explanation:
Solution
In an interest swap rate, when we receive floating, and pay fixed, in upward sloping yield curve, we are going to receive increase of cash flows and therefore going to pay fixed and so, the counterpart will be at a loss in slopping upward yield curve, and hence, we will have a credit risk that will be greater.
Answer:
By using vertical integration, Starbucks' main motive in introducing bakery products is to increase its:
value to customers by improving its product quality and overall organizational performance in the industry, and thus improving Starbucks' value chain.
Explanation:
Vertical integration is a corporate-level strategy which enables a company to own or control the supply, distribution, or retailing process to control the value or supply chain. Some of the advantages of vertical integration include controlling processes, reducing costs, and increasing efficiencies. This type of integration can be contrasted from horizontal integration, where a company acquires similar companies that are operating at the same value chain.
Answer:
a- $38,000
Explanation:
Units-of-production method of depreciation is a method in which depreciation is charged based on the output given by the asset in a period.
Truck Purchase price = $48,000
Estimated unit for depreciation = $100,000 miles
Salvage value = $8,000
Total Millage in 3 years = 40,000 + 20,000 + 35,000 = 95,000 miles
Accumulated Depreciation = ( Initial cost - Salvage value) Driven Millage / estimated total Millage
Accumulated Depreciation = ( $48,000 - $8,000 ) 95,000 / 100,000 = $38,000
Answer:
Company should focus on variances that total is $120,000 U
Explanation:
Given:
Variable-overhead spending variance = $50,000 U
Variable-overhead efficiency variance = $28,000 U
Fixed-overhead budget variance = $70,000 U
Fixed-overhead volume variance = $30,000 U
Computation:
The company should pay initial attention to its expenses whether it is a fixed or variable expense.
Company should focus on variances = Variable-overhead spending variance + Fixed-overhead budget variance
Company should focus on variances = $50,000 U + $70,000 U
Company should focus on variances = $120,000 U
Explanation:
I don't understand the question. Maybe elaborate more.
