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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.

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A customer has purchased 1,000 shares of ABC stock at $44 per share, paying a commission of $1.00 per share for the transaction.
Sonbull [250]

Answer:

Option D) 1,200 shares held at a cost basis of $37.50 per share

Explanation:

Data provided in the question:

Number of shares of ABC stocks purchased by the customer = 1,000

Price per share of ABC stock = $44

Commission paid = $1.00 per share

Stock dividend declared = 20%

Now,

The Payment of a stock dividend will increase the number of shares held by the investor

also,

each share is theoretically worth less after the stock dividend is paid.

Therefore,

The number of shares customer will have = Shares purchased × (1 + Dividend declared)

= 1000 × ( 1 + 0.20)

= 1200 shares

Also,

Cost basis for the share = Selling price + Commission

= $44 + $1

= $45

Thus,

The adjusted cost basis = $45 ÷ 1.20

= $37.50 per share

Hence,

Option D) 1,200 shares held at a cost basis of $37.50 per share

3 0
4 years ago
Gail K. Company manufactures waterproof cell phone covers. During the current month, the purchasing manager purchased $26,700 of
Marianna [84]

Answer:

D : $88,800

Explanation:

<u>Cost of goods manufactured :</u>

Direct Material used in production                         $ 21,300

Indirect Material used in production                       $  3,700

Direct Labour                                                           $ 34,100

Direct Labour                                                           $  5,900

Manufacturing overhead                                       <u> $ 16,600 </u>

Total Manufacturing cost                                        $ 75100

Add:Beginning Work in process inventory            $7,200

Less: Ending Work in process inventory                <u>$ 0       </u>

Cost of Goods Manufactured                                 <u>$88,800</u>

6 0
3 years ago
You are about to start a new project at work you think might be dangerous. Where might you look for health and safety informatio
STatiana [176]
The first 3 are correct but not the last one.
8 0
3 years ago
Value-based payments are one side of a two-sided value-based purchasing coin. What is the other side, and why is it so essential
xenn [34]

Answer and Explanation:

The value based purchasing is a strategy that encourages the healthcare quality through payment linking that depend upon the quality of the care provided to the patients. It is different from the fee for service as the fee of service means the payment is to be done for taking a particular service

The  value based purchasing involved two things

a. Value- based payment system: Here the service quality is determined with the payment made. The good qualiyty would be accepted while the bad quality would be rejected

b. The cost managed by the healthcare provider: The quality care should be provided in order to get reward for the same. and for cover up any lower payment it is necessary to decrease the cost. It is important for the long term substainability as the provider keeps their profit so that the quality care should be provided at lesser cost

6 0
3 years ago
Under which circumstance would someone need disability insurance?
Mandarinka [93]
You would need Disability insurance to protect one's income in the case that he or she becomes disabled.

So circumstances could include car crashes natraul events
8 0
3 years ago
Read 2 more answers
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