A Queens-based exporter borrows $15 million for four years to fund expansion CAPX. The risk is that interest rates rise & debt service increases. To hedge against rising rates, a four year interest rate cap is purchased. The reference rate is six month Libor, the premium is 190 basis points & the strike price is 4.50%. If 1Y rates rise to 6.25% during the first period, what is the net cost to the company for the period?

Blank is the internal operation that arranges information resources to support business performance and outcomes

Which feature is a characteristic of a corporation?

Suppose that two firms produce differentiated products and compete in prices. as in class, the two firms are located at two ends of a line one mile apart. consumers are evenly distributed along the line. the firms have identical marginal cost, $60. firm b produces a product with value $110 to consumers.firm a (located at 0 on the unit line) produces a higher quality product with value $120 to consumers. the cost of travel are directly related to the distance a consumer travels to purchase a good. if a consumerhas to travel a mile to purchase a good, the incur a cost of $20. if they have to travel x fraction of a mile, they incur a cost of $20x. (a) write down the expressions for how much a consumer at location d would value the products sold by firms a and b, if they set prices p_{a} and p_{b} ? (b) based on your expressions in (a), how much will be demanded from each firm if prices p_{a} and p_{b} are set? (c) what are the nash equilibrium prices?