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Strike441 [17]
3 years ago
13

A T-bill quote sheet has 120-day T-bill quotes with a 5.07 ask and a 5.01 bid. If the bill has a $10,000 face value, an investor

could sell this bill for _____.
a. $9,833.00
b. $9,835.29
c. $10,000
d. $9,831.00
Business
1 answer:
umka2103 [35]3 years ago
4 0

Answer:

a. $9,833.00

Explanation:

When selling or buying T-bills we need to consider

The bid price or price at which buyers are willing to purchase a T-bill

The ask price which is price at which sellers are willing to give T-bill, and

The face value which is the price of the T-bill at maturity

Sale price = Face value(1- {Ask price*Time}/360)

Sale price = 10,000(1-{0.0501*120}/360)

Sale price = 10,000* 0.9833

Sale price= $9,833

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Varto Company has 12,600 units of its sole product in inventory that it produced last year at a cost of $31 each. This year’s mo
grandymaker [24]

Answer:

It is more profitable to sell the units as-is.

Explanation:

Giving the following information:

Number of units= 12,600

Varto has two alternatives for these items:

(1) they can be sold to a wholesaler for $13 each

(2) they can be processed further for $272,300 and then sold for $34 each.

The first cost of $31 is a sunk cost, it will remain no matter which option is chosen. We will not take it into account for the decision making process.

Option 1:

Effect on income= 12,600*13= $163,800

Option 2:

Effect on income= 12,600*34 - 272,300= $156,100

It is more profitable to sell the units as-is.

7 0
2 years ago
Vnich of the following a Morales ik rom diving area
PtichkaEL [24]

Answer:

A. Distracting billboards

Explanation:

Billboards are huge advertisements placed on the roadsides.  They promote products or brands of different companies. They also advertise events and popular venues. Billboards are for commercial use and located in urban centers.  

Billboards are paid for; hence, they will be placed where there are likely to communicate to a broad audience. In rural areas, billboards are not economically viable due to the sparse distribution of people. For this reason, billboards do not pose any risks to people driving in rural areas.

Unpaved, poorly maintained roads,  Poorly lit roads at night, and  Wildlife or livestock crossing roads are characteristics or rural setting. Anyone driving in the upcountry is highly likely to encounter them.

8 0
2 years ago
Read the scenario, and answer the questions. You are a project manager for a specialty sports equipment manufacturer. A critical
GarryVolchara [31]

Answer:

Mentally outline your conversation

Explanation:

Since in the question it is mentioned that Gwen who is in a design team is unprofessional and even rude to her coworkers. Due to this, she missed two deadlines. Now you have to address this problem so here the first step is to outline your conversation in a mental way so that the chances of solving the problem is high

Therefore the same is to be considered

3 0
3 years ago
Refer to the data for Pennewell Publishing Inc. (PP). Assume that PP is considering changing from its original capital structure
Mnenie [13.5K]

Answer:

$57.69 per share

Explanation:

The computation of the  stock price per share immediately after issuing the debt but prior to the repurchase is shown below

Price per share = Value of equity ÷ number of Shares

where,

Value of equity is

= Value of operations + T-bills value - Debt value

= $576,923 + $259,615 - $259,615

= $576,923

And, the number of shares is 10,000 shares

So, the price per share is

= $576,923 ÷ 10,000 shares

= $57.69 per share

We simply applied the above formula

6 0
3 years ago
Inflation can impose significant costs and adversely distort economic systems. Indicate whether the costs and distorting effects
kaheart [24]

Answer:

1. Menu costs

- Can lead to stores listing prices in more stable currencies.

- Causes costs associated with changing prices in stores.

2. Shoe-leather-costs

- Discourages people from holding money.

- Spending time converting money into something that better holds value.

3. Unit-of-account costs

- Can reduce the quality of economic decisions.

- Makes money a less reliable source of measurement.

- Can cause distortion to the tax system.

- Causes difficulty in firms and individuals financial planning.

3 0
3 years ago
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