Find the Proceeds to the Nearest Cent When the Following

question 35

Multiple Choice

Find the proceeds to the nearest cent when the following is discounted.
-Maturity value: $88,400 Discount period: 89 days
Discount rate: 9%

• A)$80,544.00
• B)$86,433.10
• C)$86,460.04
• D)$80,444.00

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Definitions:

Merger Premium

The difference between the actual payment made to acquire a company and the pre-merger value of that company, often reflecting the expected synergies from the merger.

Market Price

The present cost at which a service or asset is available for purchase or sale on the market.

Shares Outstanding

The total number of shares of a corporation that have been issued and are currently held by investors, including the public and the company's officers and insiders.

After-Tax Cash Flow

The amount of net cash flow from operations after adjusting for taxes, providing insight into a company's financial viability after tax obligations.