What is the conditional default rate?
What will be an ideal response?
The conditional default rate (CDR) is the annualized value of the unpaid principal balance of newly defaulted loans over the course of a month as a percentage of the unpaid balance of the pool (before scheduled principal payment) at the beginning of the month. The calculation begins with computing the default rate for the month as shown below:
Then, this is annualized as follows to get the CDR:
CDRt = 1 – (1 – default rate for month t)12
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Indicate whether the statement is true or false
A(n) ________ is usually the only physical contact one makes during a sales call
Fill in the blanks with correct word
Woodpecker Co has $296,000 in accounts receivable on January 1. Budgeted sales for January are $860,000. Woodpecker Co expects to sell 20% of its merchandise for cash. Of the remaining 80% of sales on account, 75% are expected to be collected in the month of sale and the remainder the following month. The January cash collections from sales are:
A) $812,000 B) $688,000 C) $468,000 D) $984,000
Which of the following would be a characteristic of a facility with little excess capacity?
A) Allows a facility to be very flexible and to respond to wide swings in the demands placed on it B) Costs money and therefore can decrease efficiency C) Requires proximity to customers and the rest of the network D) Will likely be more efficient per unit of product it produces