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ad-work [718]
2 years ago
13

. If a T-bill promises to repay $10,000 in one year and the market interest rate is 6 percent, how much will the bill sell for i

n the market?
Business
1 answer:
ira [324]2 years ago
3 0

Answer:

market price = $9,433.96

Explanation:

a T-bill is basically a zero coupon bond, and the formula we can use to calculate its market price is:

market price = face value / (1 + i)ⁿ

  • face value (value at maturity) = $10,000
  • i = 6%
  • n = 1

market price = $10,000 / (1 + 6%) = $10,000 / 1.06 = $9,433.96

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Exercise 11-1 Compute the Return on Investment (ROI) [LO11-1] Alyeska Services Company, a division of a major oil company, provi
vaieri [72.5K]

Answer:

1. Margin = 0.32 or 32%

2. Turnover = $19,000,000  or Operating Asset Turnover = 0.52 or 52%

3. Return on Investment = 0.17 or 17%

Explanation:

Firstly, list out the parameters we were given:

Sales = $19,000,000, Net Operating Income = $6,100,000,

Average Operating Assets = $36,500,000

1. Operating Margin = Net Operating Income / Sales

Operating Margin = 6,100,000 ÷ 19,000,000 = 0.32

Operating Margin = <u>0.32</u> (to 2 decimal places)

Operating Margin = <u>32%</u>

<u />

2. Turnover refers to sales or revenue made during a particular period. In which case turnover is <u>$19,000,000</u>

However, if the turnover referred to is the Operating Asset Turnover, that is calculated below:

Operating Asset Turnover = Sales / Average Operating Assets

Operating Asset Turnover = 19,000,000 ÷ 36,500,000

Operating Asset Turnover = <u>0.52</u> (to 2 decimal places)

Operating Asset Turnover = <u>52%</u>

<u />

3. Return on Investment (ROI) = Net Operating Income / Average Operating Assets

Return on Investment (ROI) = 6,100,000 ÷ 36,500,000

Return on Investment (ROI) = <u>0.17</u> (to 2 decimal places)

Return on Investment (ROI) = <u>17%</u>

8 0
3 years ago
Creating product assortments from several sources to serve customers would be an example of a __________ function.
noname [10]
An example of a logistical function
8 0
3 years ago
The _____ approach to management focuses on scientific methods, time and motion studies, and job specialization with the goal of
iren2701 [21]
Social is the answer
3 0
3 years ago
How does a history of colonization in sub-saharan africa influence sustainable economic development in the region today?.
nlexa [21]

Answer:

Economies based on the exploration of raw materials were established in Sub-Saharan Africa.

8 0
2 years ago
The stock in Up-Towne Movers is selling for $48.20 per share. Investors have a required return of 11.2 percent and expect the di
Keith_Richards [23]

Answer:

The dividend the company just paid is $3.53

Explanation:

The solution to the problem is given as follows.

$48.20 = D1/(.1120 − .0360)

$48.20= D1(0.076)

Making D1 the subject of formula we have.

D1 = $3.66

D0 = $3.66/(1 + .0360)

D0 = $3.53

6 0
2 years ago
Read 2 more answers
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