1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
STALIN [3.7K]
3 years ago
9

Burke Co. is considering the issue of commercial paper and would like to know the yield it should offer on its commercial paper.

It believes that a 0.3 percent credit risk premium and a 0.2 percent liquidity premium are necessary to sell its commercial paper to investors. Furthermore, annualized T-bill rates are 8 percent. Based on this information, Burke should offer ____ percent on its commercial paper.
Business
1 answer:
WARRIOR [948]3 years ago
4 0

Answer:

8.5%

Explanation:

The computation of the percentage offer on its commercial paper is presented below:

= Annualized T-bill rates + credit risk premium +  liquidity premium

= 8% + 0.3% + 0.2%

= 8% + 0.5%

= 8.5%

In order to determine the percentage offer it would be 8.5% by considering all the percentage rate that is mentioned in the question

You might be interested in
If a country were to place a limit on the number of cars that could be imported in a year, it would be an example of what kind o
gizmo_the_mogwai [7]
Subsidy imported. trade regulation
6 0
2 years ago
Elaine is in the process of buying a new car. There are many possible cars to choose from, but she is focused on a few she would
statuscvo [17]

Answer:  evoked set

               

Explanation:

In simple words, evoked set refers to the collection of brands that initially comes in the mind  of the consumer when he or she is willing to buy a product in market. These are the brands that are of high significance to the customer and that individual customer completely trust such brand.

Every producer in the market wants to be in the evoked set of the consumer as there is a high probability that customer will choose to buy their willing commodity form such a set. However, positioning in evoked set cannot be marked quickly as it depends on various factors such as duration, quality and price etc.

4 0
2 years ago
Westover Winds just paid a dividend of $2.10 per share. The company will increase its dividend by 8 percent next year and will t
Alla [95]

Answer:

Price today = $26.54

Explanation:

The price of the stock can be calculated using the Dividend Discount Model (DDM). The DDM values the stock based on the present value of the expected future dividends from the stock.

The formula to calculate the price of the stock is attached.

Price today = 2.1 * (1+0.08) / (1+0.11)  +  2.1 * (1+0.08) * (1+0.06) / (1+0.11)^2  +  

2.1 * (1+0.08) * (1+0.06) * (1+0.04) / (1+0.11)^3  +  

[(2.1 * (1+0.08) * (1+0.06) * (1+0.04) * (1+0.02)) / (0.11 - 0.02)] / (1+0.11)^3

Price today = $26.54

7 0
3 years ago
Which of the following makes it more difficult for an incumbent to successfully engage in limit pricing? Multiple Choice Complet
kirill115 [55]

Answer:

Complete information

Explanation:

A limiting pricing can be described as a strategy that is employed by an incumbent to prevent entry by maintaining a price lower than the monopoly price.

In situation whereby there is completion information, it will be more difficult for an incumbent to successfully engage in limit pricing because knowledge about the incumbent, the market, product, and others is available to others.

7 0
2 years ago
Bob, an accountant of xyz, drives his own car to the bank to make a deposit for xyz. bob has an at-fault accident. if xyz carrie
densk [106]
<span>The answer is : No coverage for xyx.  Bob, an accountant of xyz, drives his own car to the bank to make a deposit for xyz. bob has an at-fault accident. if xyz carries $1,000,000 bodily injury/property damage coverage with a symbol 2 for covered autos, and bob carries no insurance, No coverage is applicable for xyz.  </span>
7 0
2 years ago
Other questions:
  • If you have a standard food cost of 38 percent, a product mix of 38 percent, and an actual food cost of 42 percent, what must yo
    12·1 answer
  • Long-Life Insurance has developed a linear model that it uses to determine the amount of term life insurance a family of four sh
    12·1 answer
  • To have all interactions with a customer recorded in one place and readily accessible to employees on a need-to-know basis when
    5·2 answers
  • Phan Company has not reported a profit in five years. This year the company would like to narrow its loss to $7,500. Assuming it
    10·1 answer
  • Under a capitalistic system, decisions such as what goods and services to produce, what to charge, and how much to import or exp
    11·1 answer
  • What are the advantages and disadvantages of common stocks​
    9·1 answer
  • Suppose the marginal cost curve in the short run first decreases and then increases. If marginal cost is decreasing, _____ must
    10·1 answer
  • Speaking effectively, writing concisely, and listening attentively are all examples of the transferable skill of
    8·2 answers
  • ________ provide(s) a methodology and tools for dealing with the organization's ongoing need to revise and optimize its numerous
    7·1 answer
  • (PLEASE ANSWER FAST!!) (19 POINTS)
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!