Kelsey noticed one of the new employees at her job is struggling with the amount work assigned to her. What can Kelsey do to sup
1 answer:
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Answer:
(a) 6.206%
(b) 6.54%
(c) 6.58%
Explanation:
Given that,
Commercial paper value = $3 million
Currently selling at 97.50 percent of its face value.
Days from maturity = 145
(a) Discount yield:
=
=
= 0.025 × 2.4827
= 0.06206 or 6.206%
(b) Bond equivalent yield:
=
=
= 0.026 × 2.52
= 0.0654 or 6.54%
(c) Effective annual return:
Future value = Present value ×
$100 = $97.50 ×
1.0658 = 1 + r
0.0658 or 6.58% = r
Answer:
Debt Outstanding = 5,630,635
Explanation:
Shares outstanding * book value per share = equity
315000 x 22.75 = 7,166,250
<u>where:</u>
assets = liab + equity
equity = 7,166,250
So we express asset in the debt ratio formula as the sum of liab and equity to be able to solve for liab
liab / (liab + 7,166,250) = 0.44
liab - .44liab = 7,166,250*0.44
liab = 7,166,250*.44/.56 = 5,630,635