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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

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An expression of the activity of a process as the number of units that would have been processed during a period if all effort h
gavmur [86]

Answer:

D. Equivalent units of production

Explanation:

The term equivalent units of production refer to all the production at the end of an accounting period. In this period, some units were completed and some are unfinished, with a certain quantity of work made. These units represent a lower number of finished goods and in order to expose the whole production as finished units, only the percentage of work made is considered.

7 0
3 years ago
A professor wanted to compare two types of teaching styles. One type is by tutorials and the other is giving a lecture. It is a
Damm [24]

Answer:

The following are the answer to this question:

Explanation:

In the given question the correct choice is missing, that can be defined as follows:

In option A, It uses the development of matched-pairs.

In option B, In the score ranking, it uses the test score for both the test.

In option C, This type of variable is the form of presentation, which allows you a treatment, which consists of lectures thru lectures as well as a presentation offering a lesson.

In option D, The answer is students.

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8 0
3 years ago
Schwering Corporation uses activity-based costing to assign overhead costs to products. Overhead costs have already been allocat
Vesnalui [34]

Answer:

Instructions are below.

Explanation:

<u>1)</u>

Order Filling, $136,040

Orders (Order Filling)

Product D7 3,040

Product U1 760

<u>To calculate the predetermined overhead rate, we need to use the following formula:</u>

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Order Filling= 136,040/3,800

Order Filling= $35.8 per order

<u>2)</u>

Overhead costs:

Machining, $81,600

Order Filling, $161,500

Activity data appear below:

MHs (Machining) Orders (Order Filling)

Product D7 13,200 4,000

Product U1 26,800 1,000

<u>First, we need to calculate the activity rate for each activity:</u>

Machining= 81,600/40,000= $2.04 per machine hour

Order Filling= 161,500/5,000= $32.3 per order

<u>Now, we can allocate overhead to product U1:</u>

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Product U1= 2.04*26,800 + 32.3*1,000= $86,972

<u>3)</u>

Wall Mirrors Specialty Windows

Total expected units produced 7,700 1,450

Expected direct labor-hours per unit 14 7

The total materials handling cost for the year is expected to be $17,153.10.

<u>Total direct labor hours, and predetermined overhead rate:</u>

Total direct labor hours= 14*7,700 + 7*1,450= 117,950

Material Handling activity rate= 17,153.1/117,950= $0.145 per direct labor hour

<u>Now, we allocate overhead:</u>

Wall Mirrors= 0.15*107,800= $16,170

6 0
3 years ago
ABC Company listed the following data for the current year:
RideAnS [48]

Answer:

$10,800 underapplied

Explanation:

Calculation for If overhead is applied based on machine hours, the overapplied/underapplied overhead is:

Overhead machine hours=[($1,044,000/24,000)×23,600]-1,037,400

Overhead machine hours=($43.50 x 23,600) - 1,037,400

Overhead machine hours=$1,026,600- 1,037,400

Overhead machine hours= $10,800 underapplied

Therefore If overhead is applied based on machine hours, the overapplied/underapplied overhead is:$10,800 underapplied

5 0
3 years ago
Custom Cars purchased some $39,000 of fixed assets two years ago that are classified as 5-year MACRS property. The MACRS rates a
Irina18 [472]

Answer:

$18,904.80

Explanation:

Calculation for what will be the aftertax cash flow from the sales

First step is to calculate the Accumulated Depreciation

Accumulated Depreciation = (0.2 + 0.32)*39,000 Accumulated Depreciation= 0.52*39,000

Accumulated Depreciation = $20,280

Second Step is to calculate the Book Value using this formula

Book Value = Initial Cost –Accumulated Depreciation

Let plug in the formula

Book Value = $39,000 - $20,280

Book Value = $18,720

Third step is to calculate the profit using this formula

Profit = Sales value–Book Value

Profit= $19,000 - $18,720

Profit = $280

Fourth Step is to calculate the taxes

Taxes = 0.34*280

Taxes = $95.20

Last step is to calculate the aftertax cash flow from the sale using this formula

Aftertax cash flow from the sale=Assets sold today-Taxes

Let plug in the formula

Aftertax cash flow from the sale= 19,000 - $58.80

Aftertax cash flow from the sale= $18,904.80

Therefore the Aftertax cash flow from the sale will be $18,904.80

3 0
3 years ago
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