Goodrich-Rabobank Interest Rate Swap In 1983‚ both B.F. Goodrich and Rabobank needed to execute external financing in order to raise 50 million dollars for ongoing operations. Goodrich wanted to raise the money through debt financing‚ but because their bonds were BBB- rated‚ they would have to pay a steep interest rate for a fixed rate. However‚ the Solomon brothers had an idea. Goodrich could borrow with a floating rate that was tied to LIBOR and then swap interest payments with a Euromarket
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a difference between the interest rates on AAA corporate bonds and U.S. Treasury notes? 3. Your father is about to retire. His firm has given him the option of retiring with a lump sum of $50‚000 in ten years or an annuity of $8‚000 for ten years. Which is worth more now‚ if the discount rate is (a) 6% (b) 19%? 4. Suppose you open a saving account with $1‚800 earned in a summer job. The account’s stated interest rate is 11%. Calculate effective annual rate (EAR) if interest is paid (a) semiannually
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The purpose of this lab was to investigate whether veins affect photosynthesis rate. It was predicted that having veins would decrease the rate because chloroplast might be less frequent due to the vascular tissue. For this experiment‚ 4 groups were set up: veins and no veins in CO2 solution‚ and veins and no veins in distilled water‚ the distilled water groups served as controls. These 4 groups were placed under a light bulb in order for photosynthesis to occur. No disks experience movement in the
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Accounting Rate of Return (ARR) ARR provides a quick estimate of a project’s worth over its useful life. ARR is derived by finding profits before taxes and interest. ARR is an accounting method used for purposes of comparison. The major drawbacks of ARR are that it uses profit rather than cash flows‚ and it does not account for the time value of money. ARR is most often used internally when selecting projects. It can also be used to measure the performance of projects and subsidiaries within
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Introduction In this lab‚ I looked at how exercise affects a person’s heart rate (BPM)‚ systolic pressure‚ diastolic pressure‚ and Mean Arterial Pressure (MAP). Heart rate is measured by beats per minute while systolic and diastolic pressure are measured by millimeters of Mercury. I found the MAP by the following equation‚ MAP= Diastolic Pressure + ⅓(Systolic-Diastolic). We found out that heart rate and systolic pressure were highest right after and during exercise‚ while diastolic pressure and
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SCH4U7-02 Monday‚ October 21‚ 2013 Designing an Experiment to Investigate Factors Affecting Rate of Reaction Introduction Hydrogen Peroxide (H2O2)‚ is the most simple peroxide and commonly used in several household items such as toothpaste or as an alternative to bleach. However hydrogen peroxide it is a very dangerous substance when accumulated in large amounts. If that situation occurs this substance must be decomposed. But how can we decompose this reaction? Well it decomposes by itself
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Divorce Divorce rates in the United States have increased dramatically in the past 25 years. Over 40 percent of the marriages among young Americans will end in divorce. There is a lot of stress on all the people involved. The man has to deal with‚ usually‚ not seeing his children‚ being alone‚ and the responsibility that is accompanied with much of the legal process. The wife has to go through‚ maybe‚ entering the work force for the first time. Children are often viewed as a back burner
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1 Part A (15 marks) Select the one best answer choice for each question. Question 1: A stock just paid its annual dividend of $9. The share price is $60. The required return of the stock is 10% pa as an effective annual rate. What is the implied growth rate of the dividend? (a) -0.8565 (b) -0.0500 (c) -0.0435 (d) 0.0000 (e) 0.1500 Question 2: A stock is expected to pay a dividend of $15 in one year (t=1)‚ then $25 for 9 years after that (payments at t=2 ‚3‚...10)‚ and on the 11th year
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The United States dropout rate is dropping about an estimated 1.1 million members in 2012. 1.1 million people will not be earning diplomas in high school in 2012. Dropout compared to high school dropouts are least likely to get a job and a living wage. Dropouts will most likely be poor and can suffer from health outcomes in the future (Rumberger). Teens have a variety of reasons for leaving school‚ including family and health problems. Dropouts that have family poverty is associated with homelessness
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1) A $100 deposit today that earns an annual interest rate of 10% is worth how much at the end of two years? Assume all interest received at the end of the first year is reinvested the second year. 2) An investment of $100 today is worth $116.64 at the end of two years if it earns an annual interest rate of 8%. How much interest is earned in the first year and how much in the second year of this investment? 3) Which of the following investments has a larger future value? A $100 investment
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