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
kondor19780726 [428]
3 years ago
12

"Vaughn Corporation is considering the issue of commercial paper and would like to know the yield it should offer on its commerc

ial paper. The corporation believes that a 0.2 percent credit risk premium, a 0.1 percent liquidity premium, and a 0.3 percent tax adjustment are necessary to sell its commercial paper to investors. Furthermore, annualized T-bill rates are 7 percent. Based on this information, Vaughn should offer ____ percent on its commercial paper."
Business
1 answer:
Naddik [55]3 years ago
6 0

Answer:

7.6 percent

Explanation:

Vaughn should offer 7.6 percent on its commercial paper.

This is calculated by adding the 0.2 credit risk premium to 0.1 percent liquidity premium + 0.3 percent tax adjustment + 7 percent annualized t bills rate.

= 0.1 + 0.2 + 0.3 + 7

= 7.6

Based on this Vaughn would offer 7.6 percent on its commercial paper.

You might be interested in
Which is a business likely to need to secure startup capital from a venture capitalist?
EleoNora [17]
Any business that is in the tech business, where massive amounts of money go for development and for producton are companies that are very likely to need startup capital from some sort of investor; in this case it can be a venture capitalist but it can also be any other type of investor. 
4 0
3 years ago
Read 2 more answers
Tom is a junk remover who occasionally finds rare antiques to sell. He uses an online auction site to sell each antique for the
Hunter-Best [27]

Answer:

Option (b) is correct.

Explanation:

There are three types of price discrimination:

(i) First degree price discrimination or Perfect price discrimination

(ii) Second degree price discrimination

(iii) Third degree price discrimination

Perfect price discrimination refers to a situation in which the selling price of the product is equal to the price that a consumer willingness to pay for the product. This is a situation in which there is no consumer surplus.

Consumer surplus = Actual price paid by the consumer - Willingness to pay for the product

4 0
3 years ago
PLEASE HELP ME!!!!!!!!!!!!!!!!!!!!!111 I NEED HELP RIGHT NOW!!!!!!!!! IM LITERALLLY CRYING! JK IM NOT BUT I NEED HELP!!!!!!
8_murik_8 [283]

I think A and C.

Hope this helps.

8 0
3 years ago
Dew wanted to create a campaign based on its core concept of diy. they ran multiple contests and created nations and communities
ruslelena [56]
By doing this, Dew was able to create a stronger bond with the customer and their brand. They already have brand awareness with their customers but now they are able to engage their customers by allowing them to have a "say" in their products. They are letting them design a product they would like to see on the market and become a part of the brand/company.
8 0
3 years ago
Discuss the Sarbanes-Oxley Act 2002 and how it helps curb accounting fraud.
Soloha48 [4]

The Sarbanes-Oxley Act of 2002 was used to curb accounting fraud by improving financial disclosure of corporations, and checking and fixing frauds if they were found.

hope this helps

4 0
4 years ago
Read 2 more answers
Other questions:
  • A company with $500,000 in operating assets is considering the purchase of a machine that costs $60,000 and which is expected to
    13·1 answer
  • Adverse selection occurs in the market for used cars because used car buyers ______
    6·1 answer
  • Stephanie was injured in a car accident was rushed to the emergency room. She received stitches for a facial wound and treatment
    15·2 answers
  • What are the qualities of a free-enterprise system? Check all that apply.
    10·1 answer
  • Carmen Co. can further process Product J to produce Product D. Product J is currently selling for $20 per pound and costs $15.75
    5·1 answer
  • If I will receive a payment of $121 two years from now and the annual interest rate is 10 percent, the present value of the paym
    9·1 answer
  • Witch most likely indicates a chemical change of occurred
    15·1 answer
  • How does the book value of shares of stock differ from the market value of shares of stock? Use a real-world example in your ans
    7·1 answer
  • When you're using a pneumatic impact tool such as a rivet hammer, chipping hammer, or other such tool, the pr
    11·1 answer
  • Advantages of profit maximization​
    6·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!