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kondor19780726 [428]
3 years ago
13

Commercial paper is issued with maturities that do not exceed 270 days because: A. Companies do not want to pay high interest ra

tes B. Companies use it to fund working capital needs C. Usually the collateral consists of short-term assets D. It exempts the borrowing from SEC regulation
Business
2 answers:
Archy [21]3 years ago
7 0

Answer: D. It exempts the borrowing from SEC regulation

Explanation:

Commercial paper could be defined as a short term debt instrument given to investors by large cooperatives with the aid of raising funds and are backed up by good credit. They do not require any collateral for the process. Most firms may have lack of or a reduced capital to fund their projects so they make use of the commercial paper as it enables them to collect money from large cooperatives within 270 days and also helps them avoid SEC regulation

Vanyuwa [196]3 years ago
3 0

Answer:

D. It exempts the borrowing from SEC regulation

Explanation:

Commercial paper is a short-term debt instrument. Companies can borrow money by issuing it to investors. It is unsecured, meaning collateral does not back it up. ... As long as the maturity is less than 270 days, you do not have to register the debt with the SEC.

A Commercial Paper is a money-market security issued (sold) by large corporations to obtain funds to meet short-term debt obligations (for example payroll), and is backed only by an issuing bank or company promise to pay the face amount on the maturity date specified on the note.

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IrinaVladis [17]

i believe it is all but 2

7 0
3 years ago
BE16.11 (LO 4) Tomba Corporation had 300,000 shares of common stock outstanding on January 1, 2020. On May 1, Tomba issued 30,00
Butoxors [25]

Answer

1) Issued for Cash

Weighted Average number of shares at year end 330,000

b) Issued for Dividends

weighted Average number is 320,000

Explanation:

The Weighted average number  (assuming year end is 31 December)

300000 * 12/12 = 300000 full year

30000 = 30000

issued for dividends

Weighted average number

300000 * 12/12 = 300000 full year

30000 * 8/12 = 20000

total at year end 320000 shares

8 0
3 years ago
Will Jones, LLP is a small CPA firm that focuses primarily on preparing tax returns for small businesses. The company pays a $50
tino4ka555 [31]

Answer:$3,500, $4, 500 $5,500=$13,500

Explanation:

A) Given that annual fee is $500 and %tax return=10%

we have that

Mega Tax software when 300 returns are filed

we have Annual fees=$500.00

Variable fees (300 x 10)=3,000.00

 Costof return=  $ 3,500.00

Mega Tax software when  400 returns are filed

we have Annual fees= $500.00

Variable fees (400 x 10)= 4,000.00

Cost of return= $4,500.00

Mega Tax software when 500 returns are filed

we have our Annual fees=$500

Variable fees (500 x 10)= 5,000.00

Cost of return=$5,500.00

Total cost of return for Mega Tax software = 3,500+4500+5,500=$13,500

4 0
3 years ago
"Parker Company stock is currently selling for $130.00 per share and the firm's dividends are expected to grow at 6 percent inde
8_murik_8 [283]

Answer:

Cost of equity = 10.7%

Explanation:

<em>We will work out the required rate of return using the the dividend valuation model. The model states that the value of a stock is the present value of the future divided discounted at the cost of equity. </em>

The model is given below:

P = D× (1+g)/(r-g)

P- price of stock, D- dividend payable now, g- growth rate in dividend, r- cost of equity

So we substitute  

130 = 5.50× (1+r)/(r-0.06)

cross multiplying

(r-0.06)× 130 = 5.50 × (1+r)

130 r- 7.8  = 5.50 + 5.50r

collecting like terms

130 r - 5.50r=5.50 + 7.8

124.5  r= 13.3

Divide both sides by 124.5

r =13.3 /124.5=  0.1068

r=0.1068 × 100=  10.7%

Cost of equity = 10.7%

6 0
3 years ago
Zenith Investment Company is considering the purchase of an office property. It has done an extensive market analysis and has es
ValentinkaMS [17]

Based on the NOIs from Year 1 to 8, the value of the property today to Zenith Investment Company will be $13,221,383.94.

<h3>What is the value of the investment today?</h3>

Because the investment will be sold in 7 years, we need to find the terminal value from year 8 and above considering the indefinite growth rate of 3%.

Terminal value:

= Year 8 cashflow / (Return rate - Growth rate)

= 1,459,170 / (12% - 3%)

= $16,213,000

This amount should be added to the Year 7 cashflow to get:

= 16,213,000 + 1,419,000

= $17,632,000

The value today can be found by taking all the cashflows to their present value and summing them:

= 1,240,000/ 1.12 +  1,240,000 / 1.12² +  1,240,000 / 1.12³ + 1,280,000 / 1.12⁴ +  1,330,000 / 1.12⁵ +  1,380,000/ 1.12⁶ +  17,632,000⁷

= $13,221,383.94

Find out more on present value at brainly.com/question/17199492.

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