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zysi [14]
2 years ago
7

Commercial paper. ​ Criss-Cross Manufacturers will issue commercial paper for a​ short-term cash inflow. ​ Criss-Cross must rais

e ​$​, and the paper will have a maturity of days. If this paper has a maturity value of ​$ and is selling at an annual interest rate of ​, what are the proceeds from each​ paper; that​ is, what is the discount rate on the commercial​ paper? What is the discount rate on the commercial​ paper? nothing​% ​(Round to two decimal​ places.)
Business
1 answer:
Olenka [21]2 years ago
6 0

Answer:

Proceeds from Commercial paper $48,035.92

Discount rate on commercial paper 3.93%

Explanation:

Calculation to determine the proceeds from each​paper

First step is to calculate 182 days rate

182 days rate = 0.082 * 182/365

182 days rate= 0.040887671

Now let calculate the Proceeds from Commercial paper using this formula

Proceeds from Commercial paper = Par value * 1/(1+i for time of issue)

Let plug in the formula

Proceeds from Commercial paper =$50,000 *1/(1+0.040887671)

Proceeds from Commercial paper=$48,035.92

Therefore The proceeds from commercial paper is $48,035.92

Calculation to determine the discount rate on the commercial​paper

First step is to calculate the Discount

Discount = $50,000-$48035.92

Discount=$1,964.02

Now let calculate the Discount rate on commercial paper

Discount rate on commercial paper =$1964.02./50000

Discount rate on commercial paper = 0.039282*100

Discount rate on commercial paper= 3.93%

Therefore the Discount rate on commercial paper is 3.93%

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New Business is just being formed by 10 investors, each of whom will own 10% of the business. The firm is expected to earn $500,
Triss [41]

Answer:

additional income is $11050  if the business is organized as a partnership rather than as a corporation

Explanation:

given data

investors = 10

own = 10%

earn =  $500000

corporate tax rate = 34%

personal tax rate = 35 %

to find out

How much additional spendable income

solution

we find here first income if formed as corporation in hand  that is

income if formed as corporation = earn × own ( 1 -  corporate tax ) × ( 1 - personal tax )

income if formed as corporation = 500000 × 10% ( 1 - 34% ) × ( 1 - 35% )

income if formed as corporation =$21450

and

income will be taxable if form partnership that is

income if formed partnership = earn × own ( 1 - personal tax )

put here value

income if formed partnership = 500000 × 10% ( 1 - 35% )

income if formed partnership = $32500

so

additional income is $32500 - $21450

additional income is $11050

4 0
3 years ago
Dominique's health insurance plan requires that all tests and specialist visits
Artyom0805 [142]

Answer:

The right option is A that is HMO

Explanation:

HMO is the term which stated as the Health Maintenance Organization, which is a kind or type of the plan that offers a wider range of the services of health  cares via or through a network of providers who agreed in order to supply the services to the members.

So, HMO is the kind of insurance plan where all tests and the specialist visit need to be approved by the doctor.

7 0
3 years ago
Read 2 more answers
A firm is producing 24 units of output. At the 24th unit of output, marginal revenue is $5, and marginal cost is $4; at the 25th
agasfer [191]

Answer:

False.

Explanation:

(1) Units produced = 24 units of output

At the 24th unit of output,

Marginal revenue = $5

Marginal cost = $4

MR ≠ MC

At the 25th unit of output,

Marginal revenue = $4.50

Marginal cost = $4.50

MR = MC

At the 26th unit of output,

Marginal revenue = $4

Marginal cost = $5

MR ≠ MC

A firm maximizes its profit at a point where the marginal revenue is equal to the marginal cost i.e. MR = MC.

It is clear from the above scenario that this firm doesn't stop at 24 units of output because at this point of production profit maximizing condition is not fulfilled which means MR ≠ MC.

This firm should stopped at 25 units of output where marginal revenue is equal to the marginal cost from the 25th unit of output.

6 0
3 years ago
The multiplier for a futures contract on a stock market index is $50. The maturity of the contract is 1 year, the current level
jolli1 [7]

Answer:

The cash flow mark to market proceeds = $754.45

Explanation:

The current index value after 12 months = current stock index * (1 + risk free - dividend yield)^12

= 1800 * (1 + 0.50% - 0.20%)^12

The current index value after 12 months = 1865.88

The future index value after 12 months = future stock index * (1 + risk free - dividend yield)^12

= 1820 * (1 + 0.50% - 0.20%)^11

The future index value after 12 months= 1880.97

The cash flow mark to market proceeds = (future index future value - current index future value) * multiplier

= (1880.97 - 1865.88) * 50

The cash flow mark to market proceeds = $754.45

5 0
3 years ago
Because customers participate directly in the service process, the success of technological innovation is dependent upon:
miss Akunina [59]
<span>Because customers often participate directly when it comes to the service process, the success of any technological innovation is highly dependent on customer acceptance. This means that if the customers don't like the product or something about it, a technological innovation will not find a place in the main stream and will be unable to succeed.</span>
5 0
3 years ago
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