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1 year ago

what is the bank discount rate on a $100,000 face value t-bill priced at $97,500, maturing in 181 days?

1 answer:

6 0

In this instance, the answer is 4.97%. When Bank discount rate is $100,000.The bank discount rate is calculated as follows: face value - price /face value * 360/days to maturity

the formula for determining the bank rate of return is as follows

When we apply relevant information to the equation, we receive:

Bank discount rate = 100,000 97,500/ 100,000 *360/ 181 = 0.0497 = 4.97

Why is the bank discount generate not a realistic assessment of the refund on holding a Treasury bonds?

Because it is an annual rate rate of return based on the par value of the bills rather than the actual dollar amount of money invested, and it is calculated on a 360-day rather than a 365-day basis, the Discount Yield can be a misleading measure of the return on T-Bills (used for Treasury bonds and notes).

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Reynolds Manufacturers Inc. has estimated total factory overhead costs of $118,800 and expected direct labor hours of 10,800 for

Lisa [10]

Answer:

$15,730

Explanation:

<em>under absorption costing overheads are charged to product units using an overhead absorption rate. </em>

The overhead absorption rate is determined using the formula below:

<em>Overhead absorption rate is = Budgeted Overheads / budgeted Labour hours</em>

Factory overhead Absorption rate (OAR)= $118,800/10,800

= $11 per hour

Amount of 0verhead to charge Number number 117

= 11 × 1,430

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3 years ago

You were asked to estimate the cost of capital for XYZ Inc. The firm is expected to have a target capital structure of 30% debt,

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Answer:

8.30%

Explanation:

The weighted average cost of capital of the company is computed using the WACC formula below:

WACC=(We*Ke)+(Wp*Kp)+(Wd*kd)

We=weight of common equity=50%

Ke=cost of retained earnings which is a proxy for the cost of equity=11.50%

Wp=weight of preferred stock=20%

Kp=cost of preferred stock=6.00%

Wd=weight of debt=30%

Kd=after-tax cost of debt=4.50%

WACC=(50%*11.50%)+(20%*6.00%)+(30%*4.50%)

WACC=8.30%

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3 years ago

SWOT analysis is a method of determining external strengths and weaknesses and internal opportunities and threats. True False

Kamila [148]

Answer:

False

Explanation:

SWOT analysis is a method of determining external strengths and weaknesses and internal opportunities and threats is a FALSE statement. SWOT analysis means

Strength

Weakness

Opportunities

Threat

Strength and weaknesses are the internal factors not external ones, strength and weakness comes from inside of the organisation. Any organisation capability to serve the customers well, having red hot selling products, creative employees can be its strength. If these elements are not performing well, they can become the weakness as well, therefore, SW is related with the internal environment of the organisation.

In the same way, opportunities and threats are posed by the outside environment, they are not internal elements and factors. Political, social, technological and legal environment can create both treat as well new and exciting opportunities for the organization.

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3 years ago

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Answer:

The correct answer is c. Time to delivery .

Explanation:

Obviously, the information will reach people more quickly and accurately, since contact is direct, which is not possible in traditional media such as a television commercial. One of the main advantages is that due to direct contact, it is possible to influence the purchase decision using persuasion techniques widely known in the field of marketing. Young Explorers should focus on these new media in order to attract potential buyers in the future.

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3 years ago

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Expansionary monetary policy has people concerned about future inflation, which is causes an increase in expected inflation. thi

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Expansionary monetary policy has people concerned about future inflation, which is causes an increase in expected inflation. this will cause the Phillips Curve to shift right.

The trade-off between unemployment and inflation in an economy is represented by a Phillips curve. According to Keynesian macroeconomics, a fiscal expansion that moves the aggregate demand curve to the right can end a downturn.

The long-run Phillips curve will move to the right (because the natural rate of unemployment increases) if structural unemployment increases because people' job abilities become obsolete.

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2 years ago