Which of the following can be a counterparty in a derivative transaction?

a. investment bank
b. commercial bank
c. major supplier
d. all of the above
e. none of the above


D

Business

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The cost method of accounting for stock

a. recognizes dividends as income b. is only appropriate as part of a consolidation c. requires the investment be increased by the reported net income of the investee d. requires the investment be decreased by the reported net income of the investee

Business

If a bank pays a 6% APR, with monthly compounding, on deposits, what effective annual rate does the bank pay?

a. 6.17% b. 6.71% c. 5.10% d. 6.59% e. 5.91%

Business

Mccaskell Corporation's relevant range of activity is 7,000 units to 11,000 units. When it produces and sells 9,000 units, its average costs per unit are as follows:  Average Cost per UnitDirect materials$6.30Direct labor$3.65Variable manufacturing overhead$1.75Fixed manufacturing overhead$9.90Fixed selling expense$2.25Fixed administrative expense$1.80Sales commissions$1.00Variable administrative expense$0.50 If 8,000 units are produced, the total amount of direct manufacturing cost incurred is closest to:

A. $79,600 B. $172,800 C. $93,600 D. $87,600

Business

According to MSN money, the stock of Orange Corporation has a beta of 1.5, but according to Yahoo Finance it is 1.75. The expected rate of return on the market is 12% and the risk free rate is 2%

What is the difference between the required rates of return calculated using each of these betas? A) 1.50% B) 1.75% C) 2.0% D) 2.5%

Business