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
prohojiy [21]
2 years ago
14

Cash equivalents are securities that a.have maturity dates of 3 months or less. b.have maturity dates of at least 6 months. c.ma

nagement intends to convert into cash within 1 year. d.management intends to convert into cash within the normal operating cycle.
Business
1 answer:
Ahat [919]2 years ago
3 0

Answer:

a. have maturity dates of 3 months or less

Explanation:

Cash equivalents refer to those short term highly liquid security investments such as marketable securities like commercial papers which can be converted into cash within 90 days or 3 months.

Cash equivalents are characterized by their maturity period being 3 months or lesser.

Commercial papers and certificate of deposits maturing in less than 3 months constitute cash equivalents.

Two major characteristics of cash equivalents being, their maturity period being 3 months or lesser and their maturity value is not subject to fluctuations i.e it is known in advance.

You might be interested in
The common stock of Buildwell Conservation & Construction Inc. (BCCI) has a beta of .9. The Treasury bill rate is 4%, and th
UkoKoshka [18]

Answer:

Cost of equity is 11.2%

WACC is 8.74%

Explanation:

The formula for cost of equity is given below:

Cost of equity=risk free rate+(Beta *risk premium)

risk free rate is the treasury bill rate of 4%

Beta is 0.9

market risk premium is 8%

cost of equity=4%+(0.9*8%)=11.2%

WACC=Ke*E/V+Kd*D/V*(1-t)

Ke is the cost of equity of 11.2%

Kd is the cost of debt of 5%

t is the tax rate of 40% or 0.4

E is the equity weighting of 70% or 0.7

D is the debt weighting of 30% or 0.3

V is the E+D=0.7+0.3=1

WACC=11.20% *0.7/1+(5%*0.3/1*(1-0.4)

WACC=7.84% +0.90% =8.74%

       

4 0
3 years ago
The average annual income rises from $25,000 to $38,000, and the quantity of bread consumed in a year by the average person fall
aleksandr82 [10.1K]

Answer:

the income elasticity of bread is 20/39 and bread is an inferior good

7 0
3 years ago
While developing a new product line, Cook Company spent $3 million two years ago to build a plant for a new product. It then dec
Mariulka [41]

Answer:

C

Explanation:

This is an example of an externality, because the very existence of the building affects the cash flow for any new project that Rowell might consider.

3 0
3 years ago
I am having to create a presentation about myself and i dont know what to do it about? I NEED YOUR HELP!!!!
In-s [12.5K]

Maybe talk about how you're life has been, or what you struggle with and wish to move on from it. Be creative ideas are endless! Or base it on a topic about your life. For example, if you've ever gotten bullied talk about how you felt through that time.

8 0
2 years ago
Read 2 more answers
Which is not an example of transfer income.
Viktor [21]

Answer:

A - dividen

Explanation:

A is the answet

4 0
2 years ago
Other questions:
  • The company pays cash for a piece of equipment. the list price was $9,100, but after negotiation, the final purchase price was $
    13·1 answer
  • Triangle Enterprises has no debt but can borrow at 8 percent. The firm's WACC is currently 13.2 percent, and there is no corpora
    5·1 answer
  • ABC Company had addition to retained earnings for the current fiscal year just ended of $395,000. The firm paid out $195,000 in
    6·1 answer
  • A tax meets the standard of efficiency if it generates enough revenue to pay for the public goods and services provided by the g
    13·1 answer
  • What are three ways to make money through investing in real estate?
    12·2 answers
  • Which of the following is correct?
    15·1 answer
  • If oligopolistic firms facing similar cost and demand conditions successfully collude, price and output results in this industry
    5·1 answer
  • A census helps the CPI in what way?
    6·1 answer
  • An appliance store sells 500 units of a particular type of dishwasher each year. The demand for this product is essentially cons
    6·1 answer
  • Sandra wants to deposit $100 each year for her son. if she places it in an investment account that averages a 5% annual return,
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!