Know the maturity of a commercial paper

Assignment Help Finance Basics
Reference no: EM133004011

As you know the maturity of a commercial paper is very short (max 270 days), why would a firm issue this type of security instead of longer term security even if they need funds for long period of time?

Reference no: EM133004011

Questions Cloud

Calculate as a percentage correct to two decimal places : Given the information above calculate the yield to maturity (YTM). Calculate as a percentage correct to two decimal places. Do not enter the percentage (%) sign
What will be impact on cost if actual learning curve turns : Assume a firm wins a bid to produce four complex pieces, What will be the impact on cost if the actual learning curve turns out to be 75%
What will be the hhi index for industry : There are only three firms in an industry. If these three firms agree to merge into one ?rm, what will be the HHI index for this industry?
Analyze the proposed business strategy in terms : Fairway is an online-based company. find the letter to shareholders, and analyze the proposed business strategy in terms of how it will affect growth.
Know the maturity of a commercial paper : As you know the maturity of a commercial paper is very short (max 270 days), why would a firm issue this type of security instead of longer term security even i
Compute the fixed rate on a 10 year : Compute the Fixed Rate on a 10 year $100 million vanilla swap, where the cash flows are bond like, using the forward rate methodology and the spot rate approach
Name three finance function : Name three finance function important to the business overall operation and performance
Discuss some of the potential audit concern : Assume you are an auditor, discuss some of the potential audit concern that might arise in an audit of the following industry: Food industry
What is the rate of return for an investor : What is the rate of return for an investor who pays $1,054.47 for a three- year bond with a 7 percent coupon and sells the bond one year later for $1,037.19? As

Reviews

Write a Review

Finance Basics Questions & Answers

  Explain the role of capital in risk management

Explain the role of capital in risk management. In your answer explain different types of capital. CET1/ Additional Tier 1/ Tier 2

  What is minimum estimated value of the synergistic benefit

Based on recent market information, Dunn IT is worth $560 million as an independent operation. If the merger makes economic sense for Who, what is the minimum estimated value of the synergistic benefits from the merger?

  Should the system be purchased

Installing an automated production system costing $278,000 is initially expected to save Zia Corporation $52,000 in expenses annually.

  Calculate the weighted average cost of capital

Use Yahoo Finance and other sources, find beta and market premium. Based on your knowledge of the Capital Asset Pricing Model (CAPM) and derive an appropriate cost of equity. Clearly state any assumptions. Calculate the weighted average cost of ca..

  Development of networked e-business

Explain how the Big Five influence the development of networked e-business.

  Compute the company target debt-equity ratio

Fama's Llamas has a weighted average cost of capital of 11 percent. The company's cost of equity is 15 percent, and its pretax cost of debt is 7.5 percent.

  Determine the property tax rate in percentage form

If the millage rate is 30 mills, determine the property tax rate in percentage form.

  Calculate the monthly payment for property taxes

Calculate the monthly payment for each. Property taxes and insurance will add $1,000 per month to whichever mortgage they choose

  Find the value of the bond if the required return is given

Bond value and changing required returns Midland Utilities has outstanding a bond issue that will mature to its $1,000 par value in 12 years.

  What is the value of operations

a. What is the value of operations? b. Immediately prior to the repurchase, what is the intrinsic value of equity?

  What is the yield to Stanford Corporation

Stanford Corporation arranged a repurchase agreement in which it purchased securities for $4.9 million. What is the yield to Stanford Corporation

  Effective annual percentage cost

What is the effective annual percentage cost of its non-free trade credit?

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