What is the true interest cost of the commercial paper

Assignment Help Finance Basics
Reference no: EM13299942

The company has a 90 day commercial paper at a 6.50% discount rate. The cost is 0.25% per year. What is the true interest cost of the commercial paper (APY), including the cost of the backup line?

Reference no: EM13299942

Questions Cloud

Determine time required for the bed to complete a full cycle : The velocity of the bed is limited to a maximum value of 150mm/s to the right and 300mm/s to the left; the acceleration is successively equal to 150mm/s^2 to the right, zero 150 mm/s^2 to the left, zero, etc.
What is the tangential speed of a point in rim : A 1.85m diameter wagon wheel makes one revolution in 3.45s. What is the tangential speed of a point in it's rim
Explain what effect does the presence of sodium sulfite : what effect does the presence of sodium sulfite group on methy orange have on the solubility of methyl orange in water. If this group were absent, would you expect the solubility of the resulting molecule to be more or less soluble in hexane than ..
Determine the magnitude and direction of the components : The beam is subjected to a force F=825 lb in the direction, and is supported by a pin connection at point B and a rope attached through a pin connection at point A. Problem #1: Draw a complete FBD of the beam.
What is the true interest cost of the commercial paper : The company has a 90 day commercial paper at a 6.50% discount rate. The cost is 0.25% per year. What is the true interest cost of the commercial paper (APY), including the cost of the backup line?
Find the increase of entropy in the universe : In a heat conductivity experiment, a slab of silicon of thickness 2 x 10^-3m and area of 0.40m^2 seperates condensing steam(lv=540cal/g) at 100 degree C, Find the increase of entropy in the universe during one minute of this experiment
What amount of total investment can be financed : Taylor Service has a capital structure consisting of 40 percent debt and 60 percent common equity. Assuming the capital structure is optimal, what amount of total investment can be financed by a $54 million addition to retained earnings?
Determine the pressure required to fill the container : If intake1=0m and intake2=0.5m, find the pressure required to fill the container when h=0.75m at both point 1 and 2. Assume the air is at atmospheric pressure until the water level passes intake 2 and the air follows isothermal compression.
How to calculate the theoretical mass of solid formed : Calculate the theoretical mass of solid formed. If the reaction in question 1 has 91.2%yield, calculate the actual mass of solid formed

Reviews

Write a Review

 

Finance Basics Questions & Answers

  What would be the cost of external equity

Messman Manufacturing will issue common stock to the public for $30. The expected dividend and growth in dividends are $2.25 per share and 3%, respectively.

  Computation of unemployment rate

Computation of unemployment rate and Assume the share of whites in the labour force is 82% and the unemployment rate

  What is the stock expected total return

If D1=$1.25, g(which is constant)=5.5%, and P0=$44, what is the stock's expected total return for the coming year?

  What is mr. smith bond worth today

Investor G. Smith owns a 5-year, $1000 bond with a 5% coupon. If the yield to maturity on similar bonds is currently 10%, what is Mr. Smith bond worth today ?

  What is the new eoq

What is the new EOQ? zen-zens (round to the neaest whole unit.)

  Definition of capital structure

What do you understand by a Capital Structure? What basic principles will you advocate in matter of deciding on a proper pattern of capital structure for company?

  Which variable most impacts profitability

Conduct a sensitivity analysis by allowing investment, sales, variable costs, and fixed costs to vary by PLUS 10% and MINUS 10% from their original estimates. Which variable most impacts profitability?

  Assuming that the annuity will end with your friends life

Now answer part (A) assuming that the annuity will end with your friend's life, he is currently 45 years old. Show your calculations.

  Finance questions

Financial Slacks. For what kinds of companies is financial slack most valuable? Are there situations in which financial slack should be reduces by borrowing and paying out the proceeds to the stockholders? Explain.

  Identify good components for a portfolio

Define and describe why Coca-Cola and Dell would be good components for a portfolio. Research company data, 10K reports, investment reports, general economic data,

  Business question on present value

Illustrate out the term present value? Find out the future value of $1,000 invested for ten years at ten percent interest compounded annually?

  What is the current yield for bond p

Bond P is a premium bond with an 9.9 percent coupon. Bond D is a 5.9 percent coupon bond currently selling at a discount. Both bonds make annual payments, have a YTM of 7.9 percent, and have fourteen years to maturity.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd