Assume a = 0.10, b = 0.15, r = 0.04 and ? = 0.35. Using the CIR model, calculate the price of a zero coupon bond maturing in 6 years
A) 0.6042
B) 0.7042
C) 0.8042
D) 0.9042
B
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The characteristic where each partner is personally liable for the debts of the partnership is known as _____________________
Fill in the blank(s) with correct word
Which of the following statements is CORRECT?
A. When we use the AFN equation, we assume that the ratios of assets and liabilities to sales (A0*/S0 and L0*/S0) vary from year to year in a stable, predictable manner. B. When fixed assets are added in large, discrete units as a company grows, the assumption of constant ratios is more appropriate than if assets are relatively small and can be added in small increments as sales grow. C. Firms whose fixed assets are "lumpy" frequently have excess capacity, and this should be accounted for in the financial forecasting process. D. For a firm that uses lumpy assets, it is impossible to have small increases in sales without expanding fixed assets. E. Regression techniques cannot be used in situations where excess capacity or economies of scale exist.
A snack food producer runs four different plants that supply product to four different regional distribution centers
The division operations manager is focused on one product, so he creates a table showing each plant's monthly capacity and each distribution center's monthly demand (both amounts in cases) for the product. The division manager supplements this table with the cost data to ship one case from each plant to each distribution center. Formulate an objective function and constraints that will solve this problem using linear programming. Center 1 Center 2 Center 3 Center 4 Monthly Capacity Plant A $2 $7 $5 $4 8000 Plant B $9 $4 $7 $6 12000 Plant C $7 $6 $4 $3 7500 Plant D $4 $8 $3 $5 5000 Monthly Demand 9000 8500 8000 7000
Refers to the instruction above. What are total costs to buy an annual quantity of 40,000 units?
A) $400,000 B) $500,000 C) $800,000 D) $850,000