User Account

All Pages

What will be the effect of any gain or loss

Assignment Help Financial Management
Reference no: EM131007408

1. Hines Moving Company held a fixed-rate debt of $2 million. The company wanted to hedge its fair value exposure with an interest rate swap. However, the only notional available at the time, on the type of swap it desired, was $2.5 million. What will be the effect of any gain or loss on the $500,000 notional difference?

Reference no: EM131007408

Questions Cloud

Is accounting the same as for notes payable to banks : What is the specific citation that specifies the classification of notes payable to suppliers?
Understand the various models of health insurance : As you learn about health care delivery in the United States, it is necessary to understand the various models of health insurance to develop important foundational knowledge as you progress through the course and for your role as a future health ..
What about google apps for work : Do you agree that email is no longer enough to facilitate digital collaboration at work? Explain your stance! What about Google Apps for Work? Do you think it will take digital collaboration to the next level
How does this approach differ from united state gaap : BA's inventories are valued at the lower of cost and net realizable value. How does this approach differ from U.S. GAAP?
What will be the effect of any gain or loss : What will be the effect of any gain or loss on the $500,000 notional difference?
An interest rate swap to synthetically convert fixed rate : _____11. An interest rate swap to synthetically convert fixed rate interest on a stock investment into floating rate interest.
The economy to the full employment level : To apply supply side economics, given that only 40% of the tax credits given to businesses are reinvested, how much tax credit do investors need to move the economy to the full employment level? You should assume that consumption and government spend..
The contract called for cash settlement of the net interest : Prepare the journal entries through June 30, 2011, to record the investment in notes, interest, and necessary adjustments for changes in fair value.
Annual maintenance costs-what is the capitalized cost : The original cost of a certain asset is $1,592. Annual maintenance costs are projected to be $464, with periodic maintenance costs of 983 every 10 years, over an indefinite period of time. The interest rate is 2%. What is the capitalized cost?

Reviews

Write a Review

Financial Management Questions & Answers

  System requires an initial investment in net working capital

Kolby’s Korndogs is looking at a new sausage system with an installed cost of $538,000. This cost will be depreciated straight-line to zero over the project’s four-year life, at the end of which the sausage system can be scrapped for $114,000. The sa..

  The marginal production cost for the publisher is 1 per

a publisher sells books to borders at 12 each. borders prices the book to its customers at 24 and expects demand over

  The source of taxable revenues make any difference

Given the following information on State A and State B: State A has no state income tax but a high state sales tax. State B has a medium state income tax and a medium state sales tax. Both States receive the same tax revenue per capita. Does one stat..

  Production efficiency-annual pretax cost savings

CSM Machine Shop is considering a four-year project to improve its production efficiency. Buying a new machine press for $495,000 is estimated to result in $194,000 in annual pretax cost savings. The press falls in the MACRS five-year class (MACRS Ta..

  What is approximate percentage cost of non-free trade credit

Dixie Tours Inc. buys on terms of 4/15, net 60. It does not take discounts, and it typically pays 35 days after the invoice date. Net purchases amount to $720,000 per year. What is the approximate percentage cost of its non-free trade credit?

  How does corporate strategy differ from business

please answer the following questions. please refer to some of the following individual companies for examples ge

  What is its days sales outstanding ratio

All for a dollar had accounts receivable of $4,000,000, accounts payable of $3,700,000, inventories of $9,100,000, annual sales of $51,000,000 and net income of $8,750,000. What is its Days Sales Outstanding ratio to two decimal places?

  Elements of the statement of cash flows

Elements of the Statement of Cash Flows

  Calculate the expected net cash flows for year three

Net working capital investments of $50,000, $75,000, and $85,000 are expected at the end of years 1, 2, and 3 respectively. Calculate the expected net cash flows for year 3.

  Executive information systems-enterprise information portals

Explain how the following information systems can support the information needs of executives, managers, and business professionals: a. Executive information systems b. Enterprise information portals c. Knowledge management systems

  Value of firm is not affected by the firms dividend policy

Your broker suggests that you can make consistent, excess profits by purchasing stocks on the 20th of the month and selling them on the last day of the month. If that is true, then. Modigliani and Miller suggests that the value of a firm is not affec..

  How swaps might be used to fix the banks borrowing cost

Your bank is looking for the lowest cost two year, fixed rate financing. It has decided to issue four consecutive three month Eurodollar time deposits on balance sheet and hedge the future borrowing costs by taking positions in the market for basic i..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd