Gotham Corp. issues a 7-year floating rate bond with a par value of $10 million to Bruce beginning of the year 2011. The bond has annual coupons based on one-year LIBOR rate. Five years later, Gotham Corp. hedges against rising interest rates by entering into a 2-year interest rate swap with Tony. On the same day, Bruce expects future interest rates to fall and enters into a 2-year interest rate swap with Peter. Both the swap agreements have notional amount of $10 million, and variable rates based on the one-year LIBOR rate. Six years from the time of the bond issuance, the LIBOR rate falls below the swap rate of both the interest rate swap agreements. Which of the following is TRUE? a. Gotham Corp. is the receiver in the interest rate swap with Tony.
b. Bruce is a debtor of Gotham Corp.
с. Bruce is the payer in the Interest rate swap with Peter.
d. Peter's net swap payment in 2017 is positive.
e. The market value of the swap between Gotham Corp. and Tony at the beginning of 2017, from Tony's perspective is negative

You have just been hired as a financial analyst for barrington industries. unfortunately, company headquarters (where all of the firm's records are kept) has been destroyed by fire. so, your first job will be to recreate the firm's cash flow statement for the year just ended. the firm had $100,000 in the bank at the end of the prior year, and its working capital accounts except cash remained constant during the year. it earned $5 million in net income during the year but paid $800,000 in dividends to common shareholders. throughout the year, the firm purchased $5.5 million of machinery that was needed for a new project. you have just spoken to the firm's accountants and learned that annual depreciation expense for the year is $450,000; however, the purchase price for the machinery represents additions to property, plant, and equipment before depreciation. finally, you have determined that the only financing done by the firm was to issue long-term debt of $1 million at a 6% interest rate. what was the firm's end- of-year cash balance? recreate the firm's cash flow statement to arrive at your answer

Alandlord rented an art studio to an artist. under the terms of the signed, written, two-year lease, the artist agreed to pay the landlord $1,000 per month and to assume responsibility for all necessary repairs. after the first year of the lease, the artist assigned the balance of his lease to a sculptor. the landlord approved the sculptor as a tenant and accepted two rent payments from her, and then the landlord sold the building to an investor. the sculptor had made two payments to the investor when an electrical fire broke out in the studio, injuring the sculptor. the fire was caused by faulty wiring. the landlord was aware that there was a dangerous wiring problem when he leased the property to the artist. but when the landlord discovered how costly repairs would be, he decided it would be more profitable to sell the property than to repair it. the problem was not easily discoverable by anyone other than an expert electrician, and the landlord did not tell the artist, the sculptor, or the investor about the problem. the sculptor sues to recover damages for her injuries. from whom can the sculptor recover?

Levine inc., which produces a single product, has prepared the following standard cost sheet for one unit of the product. direct materials (9 pounds at $1.80 per pound) $16.20 direct labor (6 hours at $14.00 per hour) $84.00 during the month of april, the company manufactures 270 units and incurs the following actual costs. direct materials purchased and used (2,500 pounds) $5,000 direct labor (1,660 hours) $22,908 compute the total, price, and quantity variances for materials and labor.