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
denis23 [38]
3 years ago
5

Freeman corp., a large corporation, plans to issue 45-day commercial paper with a par value of $3,000,000. freeman expects to se

ll the commercial paper for $2,980,000. what is freeman's annualized cost of borrowing?
Business
1 answer:
fredd [130]3 years ago
4 0

Answer:

The annualized cost of borrowing is 5.42%

Explanation:

The cost of borrowing is the finance charge which is the dollar amount of the loan that cost the person. Lenders usually charge what is referred to as the simple interest.

The formula to compute the same is as:

Principal  x rate x time = Interest

where

Principal amount is $3,000,000

Rate is not known

Time is 45 days, So time is number of days borrowed divided by number of days in a year

Time = 45 / 365 days

Time = 0.123

Interest = Par value - Selling Value

Interest = $3,000,000 - $2,980,000

Interest = $20,000

Putting the value above:

Rate = Interest / Principal  x Time

Rate = $20,000 / $3,000,000 x  0.123

Rate = $20,000 / $369,000

Rate = 5.42%

You might be interested in
Which responsibility belongs to the marketing function
boyakko [2]

Answer:

Marketing deals with the existing and the potential market segments of a business essential and are responsible for the product, pricing, placing the product in the market and in the mildest of the consumer and promotion of the product.

Moreover, Markering is responsible for provide the upto date information of the consumers and to identify new trends and opportunities in the market as well.

Explanation:

4 0
3 years ago
What is the first step of creating a federal budget A. Congress votes on requirements for a budget plan. B. Executive agencies s
Yakvenalex [24]

Answer:

C. State governments submit their budget proposals.

Explanation:

The Federal budget is a budget for the entire country.  It is an estimate of the expected government revenue and expenditure for a fiscal year.

The first step in the federal budget preparation involves submitting proposals by the government department and agencies. These are the federal agencies such as security agencies. They submit their expenditure proposal to the Whitehouse. All agencies' proposals make up part of the president's budget request.

7 0
3 years ago
What general conclusions can be drawn about Eli’s situation? Check all that apply.
Alex777 [14]

Answer:

He may still be covered in some cases.

He faces more risk than insured people do.

He may have to take precautions but many factors are beyond his control.

Not being able to afford insurance was a factor in him not being covered.

Explanation:

I got it correct

7 0
3 years ago
Read 2 more answers
(8 points) The following information relates to the Windsor Company.DateEnding Inventory(End-of-Year Prices)PriceIndexDecember 3
ad-work [718]

Answer:

Windsor Company

   year             Inventory               Indexes       Inventory        Change from prior y

                    at year prices                          at base year price

2013              $63,500               100                   63,500                    -  

2014               105,434               119                      88,600                25,100

2015               113,446                131                     86,600               (2000)

2016                128,792              136                    94,700                8,100

2017                118,158                141                      83,800               (10,900)  

Dollar Value Inventory

Dec 31 , 2013     $63,500 at 1.00                   <u>$63,500</u>

Dec 31, 2014        $63,500  at 1.00               $63,500

                             25,100 * 1.19                       <u> 29,869</u>

                                                                          <u>93,369</u>

Dec 31 2015            $63,500*1.00                  63,500

                                 23,100*1.19                     <u>27,489</u>

                                                                       <u>  90,989</u>

Dec 31, 2016           $63,500*1.00                    63,500

                                  23,100*1.19                       27,489

                                    8,100*1.36                    <u>    11,016</u>

                                                                          <u> 102,005</u>

Dec 31 , 2017              $63,500*1.00                 63,500

                                    20,300*1.19                   <u> 24,157</u>

                                                                           <u> 87,657     </u>  

 

Explanation:

7 0
3 years ago
The determination of an exchange price acceptable to both the buyer and the seller of a product is called
antoniya [11.8K]

Answer: pricing

Explanation:

Pricing is the determination of an exchange price acceptable to both the buyer and the seller of a product.

When a seller is determining the price of a product, she considers cost of production, projected revenue, price of competitors, market condition and regulation.

A buyer would consider the quality of the product ,economic conditions and utility when deciding on the price to acquire a product.

The different types of pricing strategies are -

1. Penetration pricing - when prices are set very low to attract customers and to gain access into a market.

2. Premium pricing- when prices are set very high so that the product would appeal to certain consumers.

6 0
2 years ago
Other questions:
  • Rauch Inc. leases a piece of equipment to Donahue Corp. on Jan 1 2017. The lease agreement called for annual rental payments of
    11·1 answer
  • At a price of $3.50 per loaf, a bakery is willing to supply 450 loaves of bread per week. At a price of $4.00 per loaf, the bake
    8·1 answer
  • Karen bought a mixer. She received a warranty that covers only certain aspects of the product. If the product fails, she may be
    8·2 answers
  • ou currently own 10 percent of the 3.0 million outstanding shares of Webster Mills. The company has just announced a rights offe
    14·1 answer
  • On December 31, Patterson Company had the following list of account balances.
    10·1 answer
  • The Gecko Company and the Gordon Company are two firms whose business risk is the same but that have different dividend policies
    14·1 answer
  • Which system gives you the most economic freedom?
    5·1 answer
  • Give me a couple countries that have a low and high quality of life index​
    9·1 answer
  • How much can Jeff claim as an itemized deduction for taxes paid if he paid the following in 2019: (state income tax withheld of
    13·1 answer
  • 3. John Legend is looking for help to modernize the inventory systems at his company, Green Light. He is looking for information
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!