Answer:
b. Increase in communication and coordination costs
Explanation:
Based on the information provided within the question it can be said that she will likely experience a disadvantage with an Increase in communication and coordination costs. This is mainly due to the fact that those individuals are already used to communicating and coordinating with their teams in a very specific way that they have developed through months of working together. By putting members from different divisions together they have to learn how to coordinate with one another which will take time and money.
Answer:
$54,400
Explanation:
The balance in the refund liability account would be calculated as;
Ending balance of sales return allowance = Opening balance of allowance + Expected sales return - Actual sales return
Given that;
Opening balance = $33,400
Expected return = $740,000 × 7% = $51,800
Actual return = $30,800
Therefore,
Ending balance of sales returns = $33,400 +$51,800 - $30,800 = $54,400
The balance in the refund liability account at the end of 2021 is $54,400
Answer:
see below
Explanation:
Online-only banks lack a physical presence like traditional banks. They operate over the internet and usually offer higher interest rate than the regular bank. Two reasons make them offer higher interests.
- Online banks do not require huge space under brink and mortar to operate. They do not need a large number of employees compared to other banks. It means they have low operating expenses, hence more profitable. Online-only banks can afford to pass the benefits of low running costs to their customers by offering high interest on deposits.
- Online-only banking is still a new concept in the banking industry. To gains popularity and attract more customers, online banks are offering higher interest rates than regular banks.
Answer:
a. Assuming you purchased the bond for $850, what rate of return would you earn if you held the bond for 30 years until it matured with a value $5,000?
future value = present value x (1 + r)ⁿ
- future value = $5,000
- present value = $850
- n = 30
5,000 = 850 x (1 + r)³⁰
(1 + r)³⁰ = 5,000 / 850 = 5.882652
³⁰√(1 + r)³⁰ = ³⁰√5.882652
1 + r = 1.0608444
r = 0.0608444
r = 6.08%
b. Suppose under the terms of the bond you could redeem the bond in 2025. DMF agreed to pay an annual interest rate of 1.3 percent until that date. How much would the bond be worth at that time?
future value = present value x (1 + r)ⁿ
future value = 850 x 1.013⁷ = $930.43
c. In 2025, instead of cashing in the bond for its then current value, you decide to hold the bond until it matures in 2048. What annual rate of return will you earn over the last 23 years?
5,000 = 930.43 x (1 + r)²³
(1 + r)²³ = 5,000 / 930.43 = 5.373859398
²³√(1 + r)²³ = ²³√5.373859398
1 + r = 1.075849638
r = 0.0758
r = 7.58%
Answer:
Possible options:
A. 38
B. 40
C. 42
D. There is no arbitrage opportunity.
Answer is B
Explanation:
With the given data, the no-arbitrage futures price should be; 800e(0.025-0.03)*0.50 =798−Since the market price of the futures contract is lower than this price there is an arbitrage opportunity. The futures−contract could be purchased and the index sold.−
Arbitrage profit is 798 - 758 = 40
