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Luden [163]
3 years ago
13

A T-bill quote sheet has 60-day T-bill quotes with a 4.95 ask and a 4.89 bid. If the bill has a $10,000 face value, an investor

could sell this bill for _____.
a. $9,918.50
b. $9,919.62
c. $9,917.50
d. $10,000
Business
2 answers:
PilotLPTM [1.2K]3 years ago
5 0

Answer:

c. $9,917.50

Explanation:

The bid price is the rate at which an investor will buy (4.89). While the ask price is the rate at which the T bill will be sold ($4.95).

In this question we are concerned with the ask price.

To calculate the selling price use the following formula

Yield discount= (face value-price)/face value * (360/maturity)

4.95%= (10,000- price)/10,000 * (360/60)

Cross-multiply

10,000 * 0.0495= (10,000- price) * 6

495/6= 10,000- price

price= 10,000-82.5

Price= $9,917.50

In-s [12.5K]3 years ago
3 0

Answer:The correct answer is a). $9,918.50

Explanation: In selling, the investor will use the bid price of $4.89 alongside the face value of the bill.

That is to say, the face value * (1-(bid price * no. of days)/days in a year) = 10000 * (1-(0.0489*60)/360) = $9,918.50

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Answer:

Delivery charges on shipments to customers.

Explanation:

The direct materials cost include the costs of acquiring, managing, storing and preparing the materials used during the production process. Therefore,  incoming freight charges,  materials handling costs,  invoice costs of direct materials and materials storage costs could all be included. On the other hand, delivery charges on shipments to customers are costs related to the finished product and not to the materials and should not be included in direct materials cost.

The answer is Delivery charges on shipments to customers.

5 0
3 years ago
A company reports the following:
Korolek [52]

Answer:

$7.50

Explanation:

Earnings per share = Earning attributable to holders of Common Stock ÷ Weighted Average Number of Common Stocks Outstanding

therefore,

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thus,

The company's earnings per share on common stock is: $7.50

3 0
3 years ago
If a war destroys a large portion of a country's capital stock but the saving rate is unchanged, the Solow model predicts that o
Ksenya-84 [330]

Answer:

B) the same level of output per person as before.

Explanation:

In the Solow growth model, the economy reaches a steady state level of capital regardless of the starting level of capital. This steady state occurs when capital per worker is constant. Therefore after the war, the level of output should return to its normal level since the savings rate is constant and hasn't changed. This model assumes that a constant fraction of capital will always wear out, increasing the capital-labor ratio, therefore the population must grow or new technologies must be introduced to reach the steady state.

6 0
3 years ago
In order to eliminate piles, you must _________.
sweet [91]
B. Keep surfaces clear

??
I hope its the right answer....If its not I'm sorry, but I hope it helps!
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4 years ago
Which of the following is not a related party transaction? a) Acme Corporation leases office space to Norton Company. Mr. and Mr
KengaRu [80]

Answer:

c) Beth Teal pays $15,000 a year to her gardener, Ben. Beth is Ben's grandmother.

Explanation:

A related party transaction is any business transaction that takes place between entities that share some type of common interest, e.g. a parent company leasing a factory to one of its subsidiaries. They are legal, but the potential for conflicts of interest exist. Following the example, if the lease price is higher than fair market price, then the transaction could be considered fraudulent. The SEC requires that publicly traded corporations disclose all related party transactions.

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3 years ago
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