Determine which of the following statements is false with respect to Redington immunization. Modified duration may change at different rates for each of the assets and liabilities as time goes by. Redington immunization requires infrequent rebalancing to keep modified duration of assets equal to modified duration of liabilities. This technique is designed to work only for small changes in the interest rate. The yield curve is assumed to be flat. The yield curve shifts in parallel when the interest rate changes.

What are the general categories of capital budget scenarios? describe the overall decision-making context for each.

Capital financial corporation will lend 90 percent against account balances that have averaged 30 days or less; 80 percent for account balances between 31 and 40 days; and 70 percent for account balances between 41 and 45 days. customers that take over 45 days to pay their bills are not considered acceptable accounts for a loan. the current prime rate is 16.50 percent, and capital charges 3.50 percent over prime to charming as its annual loan rate. a. determine the maximum loan for which charming paper company could qualify.

For a firm that uses the weighted average method of process costing, which of the following must be true? (a) physical units can be greater than or less than equivalent units. (b) physical units must be equal to equivalent units. (c) equivalent units must be greater than or equal to physical units. (d) physical units must be greater than or equal to equivalent units.