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pickupchik [31]
2 years ago
6

Clemson University Urgently needed $30 million to properly execute a student testing plan during fall of 2020. Clemson approache

d by a commercial paper dealer offering to sell an issue for Clemson. The dealer indicates that Clemson could sell a $30 million issue maturing in 270 days at an interest rate of 8. 5 percent per annum (deducted in advance). The fee to the dealer for selling the issue would be 1. 5% of the issue size. What was annual financing cost of Clemson to secure large-scale testing
Business
1 answer:
VARVARA [1.3K]2 years ago
5 0

The financing cost of Clemson to secure the investment will be $2.2875 million.

<h3>How to calculate the financing cost</h3>

From the information, we've to calculate the simple interest first. This will be:

= PRT/100

= (30 × 0.75 × 8.5)/100

= 1.9125 million

The fee is 1.25% of the issue size. This will be:

= 1.25% × $30 million

= $375000

Therefore, the financing cost will be:

= $1.9125 million + $0.375 million

= $2.2875 million

Learn more about financing cost on:

brainly.com/question/24576997

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17. Which activities are associated with the acquisition and disposal of long-term assets (for example the purchase of equipment
valina [46]

Answer:

B) Investing Activities

Explanation:

Investing activities deal with cash transactions involving movement of items of Property, Plant and Equipment. These transactions include purchase costs and sale proceeds of assets.

8 0
3 years ago
In response to a shortage caused by the imposition of a binding price ceiling on a market,
Margaret [11]

In response to a shortage caused by the imposition of a binding price ceiling on a market,

a. price will no longer be the mechanism that rations scarce resources.

b. long lines of buyers may develop.

c. sellers could ration the good or service according to their own personal biases.

A binding price ceiling is when the government or an agency of the government sets the maximum price of a good or service below the equilibrium price.

When price of a good is set below the equilibrium price of the good, the producer surplus would decreases and the consumer surplus would increase. This would lead to an excess of demand over supply. As a result, a shortage would occur. As a result of the shortage, black markets would occur.

To learn more about a price ceiling, please check: brainly.com/question/24312330

6 0
2 years ago
Caramel Corporation has 5,000 shares of stock outstanding.
Jet001 [13]

<u>Answer and Explanation:</u>

Caramel Corporation outstanding share are 5000

Caramel Corporation distributes $145,000 in an exchange for 1000 number of shares in a qualifying stock redemption.

Given : caramel Corportaion has E&P of around $300,000.

E&P attributable to 1000 number of shares = 300000 * 1000 / 5000=\$ 60,000

Therefore, the consequence of this redemption are $60,000 charge to E&P and reduction in caramel Corporation paid-in capital account is $85000 ($145000 subtract $60000)

4 0
3 years ago
The Electrotech Corporation manufactures two industrial-sized electrical devices: generators and alternators. Both of these prod
adoni [48]

Answer:

Given that generators generate greater profit with less consumption of hours, the maximum profit would be building 130 generators, obtaining $ 32,500 of profit, and there would be 10 hours of testing left over.

Explanation:

Since the Electrotech Corporation manufactures two industrial-sized electrical devices: generators and alternators, and both of these products require wiring and testing during the assembly process, and each generator requires 2 hours of wiring and 1 hour of testing and can be sold for a $ 250 profit, while each alternator requires 3 hours of wiring and 2 hours of testing and can be sold for a $ 150 profit, and there are 260 hours of wiring time and 140 hours of testing time available in the next production period and Electrotech wants to maximize profit, to determine this situation the following mathematical logical reasoning must be carried out:

260/2 = 130

140 - 130 = 10

130 generators = 32,500

Thus, given that generators generate greater profit with less consumption of hours, the maximum profit would be building 130 generators, obtaining $ 32,500 of profit, and there would be 10 hours of testing left over.

4 0
2 years ago
On January 1, 2021, Jeans-R-Us Company awarded 15 million of its $1 par common shares to key executives, subject to forfeiture i
Sedaia [141]

Answer and Explanation:

The computation and journal entries are shown below:

1.. The total compensation cost is

= 15 million × $3 per share

= $45 million

2.  

On Jan 1

Deferred compensation expense $45 million

            To Common Stock $15 million

            To Additional paid in capital $30 million

(Being expense is recorded)

3.

On Dec 31

Compensation expense ($45 ÷ 3) $15 million  

      To Deferred compensation expense $15 million

(Being expense is recorded)

6 0
3 years ago
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