Chapter 14, Problem 5BCRQ

General accounting question

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What is its net income?

If absorption costing is used rather than variable costing?

What is the net income for the year?

What is the dividend payout ratio of this financial accounting question?

correct answer is accounting

Accounting question

A local credit union negotiates the purchase of a one-year interest rate cap with a cap rate of 4.75 percent with a national bank. The option has a notional principal of 1.5million and costs 2,800. In one year, interest rates are 5.65 percent. The local credit union's net profit, ignoring commissions and taxes, was_.