Answer:
the bank keeps 8 percent of its deposits as reserves and loans out the rest.
Explanation:
Since it is mentioned in the question that there is a reserve ratio of 8% so now the reserve requirement means the requirement with respect to the fund value that bank should hold on to in reserve against deposits that made by their clients. The money must be either at the vaults of the bank or at the closing of the federal reserve bank
Therefore the second option is correct
A company's income before interest expense and income taxes is $575,000 and its interest expense is $145,000. Its times interest earned ratio is:__________.a. 0.25 b. 2.73 c. 0.99 d. 3.72
Answer:
3.96
Explanation:
A company's Time Interest Earned ratio shows us its ability to pay its debts.
The income before expenses is given as: $575000
The interest expenses = $145000
The question wants us to find time interest earned ratio. We get this by:
Company's initial income/interest expenses
= $575,000/$145,000
= 3.96
This is the correct answer to the question. The right answer was not listed in the options.
Fuseina has GH¢40,000.00 to invest. She decided to put part of the money in an account paying 4% interest and the remainder into a stock paying 6%interest. Her financial advisor tells her that the total annual income from these investments should be GH¢2040.00. How much should she invest at each rate?
Answer:
GH¢18,000 in the account that pays 4%
GH¢22,000 in stock
Explanation:
Let X represents the account that pays a 4% interest rate
Let Y represent the stock that pays a 6% interest rate
Total amount invested=40,000
X+Y=40,000 equation 1
Interest earned on X=X*4%=0.04X
Interest earned on Y=Y*6%=0.06Y
Total interest =2040
0.04X+0.06Y=2040 equation 2
Multiply equation 1 by 0.04
0.04X+0.04Y=(40,000*0.04)
0.04X+0.04Y=1600 equation 3
equation 2- equation 3
0.04X+0.06Y=2040
0.04X+0.04Y=1600
0.02Y=440
Y=440/0.02=22000
substitute 22000 for Y in equation 1
X+22000=40000
X=40000-22000=18000
Is Jack in the box better than McDonald's
Answer:
nope
Explanation:
bc of personal issues with jack in the box
Sales mix is the relative percentage in which a company sells its multiple products. the trend of sales over recent periods. a measure of leverage used by
Answer:
is relative percentage in which a company sells its multiple products.
Explanation:
Sales mix is method use in calculating thee each unit/proportion of goods that are sale in the company relatively to the total sales. Whenever there is a change in the sales mix of a firm, then the profit change, sales mix helps to know which particular product sells more than the other one in the company.it should be noted that sales mix is relative percentage in which a company sells its multiple products.
Your economics professor assigns a group project for the course. To combat the free-rider problem to which such an assignment might lead, the instructor asks you to evaluate the contributions of your peers in a confidential report. Will this evaluation have the desired effects?
Answer:
The overview according to another procedure outlined would be defined in the following portion.
Explanation:
Whenever there's no participant evaluation, colleagues may lose when the increase dependence the scores based on either the mission as a whole as well never overall achievements, thereby eventually leading to the complimentary, so the teammates prefer to not even succeed. The colleagues' appraisal report might encourage free passengers to succeed because these complimentary will indeed be uncovered throughout the secret document as well as obtain lower scores or grades to solve the unrestricted dilemma.D. J. Masson Inc. recently issued noncallable bonds that mature in 10 years. They have a par value of $1,000 and an annual coupon of 5.5%. If the current market interest rate is 7.0%, at what price should the bonds sell?a. $829.21b. $850.47c. $872.28d. $894.65e. $917.01
Answer:
Bond Price= $894.65
Explanation:
Giving the following information:
Face value= $1,000
Number of periods= 10
Cupon= 0.055*1,000= $55
YTM= 0.07
To calculate the price of the bond, we need to use the following formula:
Bond Price= cupon*{[1 - (1+i)^-n] / i} + [face value/(1+i)^n]
Bond Price= 55*{[1 - (1.07^-10)] / 0.07 + [1,000/(1.07^10)
Bond Price= 386.30 + 508.35
Bond Price= $894.65
upstate bank is offering long-term certificates of deposit with a face value of $1000. bank customers can buy thece cds today for $67,000 and will receive the
Answer: 2.70%
Explanation:
Proper question is;
Upstate bank is offering long-term certificates of deposit with a face value of $100,000. Bank customers can buy these CDs today for $67,000 and will receive the $100,000 in 15 years. What interest rate is the bank paying on these CDs.
The formula to calculate rate is;
= (Future Value / Present Value) ^ 1/15 - 1
= (100,000 / 67,000) ^ 1/15 - 1
= 0.0270581026212
= 2.70%
Nanometrics, Inc. has a beta of 3.15. If the market return is expected to be 10 percent and the risk-free rate is 3.5 percent, what is Nanometrics required return
Answer:
23.975%
Explanation:
Calculation for Nanometrics required return
Using this formula
Required return = Risk free rate + (Beta*(Market rate - Risk free rate))
Where,
Risk free rate =3.5%
Beta=3.15%
Market rate =10%
Let plug in the formula
Required return = 3.5% +(3.15*(10%-3.5%)
Required return = 3.5% +(3.15*6.5%)
Required return = 3.5% + 20.475%
Required return = 23.975%
Therefore Nanometrics required return will be 23.975%
What breif document should always include the six basic story element
Answer:
Explanation:
.
g On January 1, a machine with a useful life of four years and a salvage value of $13000 was purchased for $77000. What is the depreciation expense for year 2 under straight-line depreciation
Answer:
Annual depreciation= $16,000
Explanation:
Giving the following information:
Purchase price= $77,000
Useful life= 4 years
Salvage value= $13,000
Under the straight-line method, the depreciation expense remains constant during the life of the asset.
To calculate the depreciation expense, we need to use the following formula:
Annual depreciation= (original cost - salvage value)/estimated life (years)
Annual depreciation= (77,000 - 13,000) / 4
Annual depreciation= $16,000
Organizational behavior knowledge
A facility that serves the role of being a low-cost supply source for markets located outside the country where the facility is located is:_______a. an offshore facility. b. a source facility. c. an outpost facility. d. a server facility.
Answer: a. an offshore facility.
Explanation:
Offshore in this scenario refers to activities in another country therefore an offshore facility would be one that supplies markets located in countries outside the country the facility is located.
These facilities are able to supply other countries with materials because they do it at such a low enough cost that the countries they supply to buy from them instead of their own countries. This is how most Newly Industrialized Countries came to be.
Harry, Hermione, and Ron formed an S corporation called Bumblebore. Harry and Hermione both contributed cash of $29,500 to get things started. Ron was a bit short on cash but had a parcel of land valued at $71,600 (basis of $59,000) that he decided to contribute. The land was encumbered by a $42,100 mortgage. What tax bases will each of the three have in his or her stock of Bumblebore
Answer:
The tax bases of Harry = $29,500, Hermoine = $29,500 and Ron = $16,900
Explanation:
Harry and Hermoine will have equal tax basis of $29,500. Ron tax basis shall be $59,000 basis in land contributed as deducted by $42,100 mortgage that the Ron is relieved of. Hence Ron's tax basis is $59,000 - $42,100 = $16,900
Dawn Swift discovered that twenty years ago, the average tuition for one year at an Ivy League school was $4,500. Today, the average cost is $29,000. What is the growth rate in tuition cost over this 20-year period
Answer: 9.76%
Explanation:
The cost today of $29,000 is the future value of the cost 20 years ago with the growth rate in question. It can therefore be solved by the future value formula;
29,000 = 4,500 * ( 1 + r/100)²⁰
( 1 + r/100)²⁰ = 29,000/4,500
1 + r/100 = ²⁰√29,000/4,500
1 + r/100 = 1.0976
r = 9.76%
XYZ Company makes 400 widgets. The variable costs are $38.00 per unit and fixed costs are $32.40 per unit; however, $23.80 in fixed costs per unit is unavoidable. What is the effect on net income if the company instead buys the widgets from an outside supplier for $50.00 per unit?
Answer:
Decrease in net income by $1,360
Explanation:
First, we need to prepare analysis of costs and savings if the company buys outside.
Please note that the fixed costs per unit are unavoidable and are irrelevant hence ignored in making this decision.
Analysis of costs and savings
Purchase price (400 widgets × $50 per unit) = ($20,000)
Savings:
Variable costs (400 widgets × $38 per unit) = $15,200
Fixed costs (400 widgets × $8.60 per unit) = $3,440
Net income effect
($1,360)
The effect of on net income if the company buys widget from outside is a decrease in net income by $1,360
A female employee brings effective insight into how the clients have been involved in the change process previously. How do men and women differ in their leadership styles?
Answer:
This question is incomplete, the options are missing. The options are the following:
a) Women use more participative leadership.
b) Men have higher emotional intelligence.
c) None of these answers are correct.
d) Men are less harsh when they punish their subordinates.
e) Men make fewer decisions on their own.
And the correct answer is the option A: Women use more participative leadership.
Explanation:
To begin with, there is a scientific study that proves that when it comes to terms of leadership the female participants tend to be more participative regarding subjects of decision making process and taking ideas from others and work as a team, like it should be. Meanwhile the male participants tend to be in their majority more centralized when it comes to decide every aspect of what it has to be done. And that is in part because of the personality of each one due to the fact that male tend to be more dominant because of biology reasons then they make decisions without consulting with other while women take the right way and involves every member in order to take the final decision.
Assume that Georgia has exports of $ 50 billion, imports of $45 billion, and GDP of $200 billion. What is Georgia's level of trade
Answer: 25%
Explanation:
Level of trade is simply calculated as the percentage of export of a particular country to its share of the gross domestic product.
Based on the scenario given in the question, the level of trade will be:
= (Exports / GDP) × 100
= 50/200 × 100.
= 1/4 × 100
= 25%
Holt Enterprises recently paid a dividend, D0, of $3.50. It expects to have nonconstant growth of 12% for 2 years followed by a constant rate of 6% thereafter. The firm's required return is 18%. How far away is the horizon date
Answer:
At the end of the year 2
Explanation:
In order to compute the share of Holt enterprises, we require dividends in years 1 and 2 dividends which are shown thus:
Year 1 dividend=$3.50*(1+12%)^1=$ 3.92
Year 2 dividend=$3.50*(1+12%)^2=$4.3904
Horizon value at the end of year 2=year 2 dividend *(1+constant dividend growth rate)/(required return-constant dividend growth rate)
Horizon value is computed at the end of year 2 since it needs to follow the last dividend paid immediately
Barbara Jones is interested in buying a five-year zero coupon bond with a face value of $1,000. She understands that the market interest rate for similar investments is 10.3 percent. Assume annual coupon payments. What is the current value of this bond? (Round answer to 2 decimal places, e.g. 15.25.)
Answer:
Zero-cupon bond= $612.52
Explanation:
Giving the following information:
Face value= $1,000
Number of periods= 5 years
Interest rate= 10.3% = 0.103
To calculate the price of the bond, we need to use the following formula:
Zero-cupon bond= [face value/(1+i)^n]
Zero-cupon bond= [1,000 / (1.103^5)]
Zero-cupon bond= $612.52
Have you ever tried to pretend to be something your Not cause I have anyway here's the question so it dosent' get reported
Match the association type with the person that best fits the description: opportunistic association
a.
your favorite teacher
b.
the president of your gardening club
c.
your best friend
d.
the man you met while walking your dog
Answer:
c...
Explanation:
You and two partners start a company. However, your partners play no role in running the company. You spend all your time managing the business. The time that you could have spent working for someone else and earning wages instead of running the business is your:
Answer:
opportunity cost I guess
Lottery: Todd actually took his winnings as a one-time lump-sum payout of $30 million instead of the annual installments. What discount factor did the state of California use the arrive at $30 million as the present value?
Answer:
The question is incomplete, so I looked for a similar one that can be used as an example (see attached image):
In this example, you are offered 30 annual payments, starting today, = $85,000,000 / 30 = $2,833,333 per year
in order to determine the present value of this annuity due:
present value = annual payment x PV annuity due factor
present value = $2,833,333 x 12.81039 (PV annuity due factor, 30 period, 7.5%) = $36,296,100
if you were given the present value and the annual payment, then you would need to determine the PV annuity factor:
PV annuity factor = present value / annual payment = $36,296,100 / $2,833,333 = 12.81039
to determine the interest rate we must use the following formula:
PV annuity due = ($1/i) · (1 + i) · {1 - [1 / (1 + i)ⁿ]}
12.81039 = ($1/i) · (1 + i) · {1 - [1 / (1 + i)³⁰]}
another way to figure it out is using annuity tables or calculators:
you know the annuity due factor = 12.81039 and the number of periods = 30, so you look down to see which interest rate matches them.
An employee has year-to-date earnings of . The employee's gross pay for the next pay period is . If the FICAOASDI is % and the wage base is , how much FICAOASDI tax will be withheld from the employee's pay? (Answer is rounded to whole dollar.)
Answer:
$192
Explanation:
Calculation for how much FICA-OASDI tax will be withheld from the employee's pay?
FICA-OASDI tax=($117,000-$113,900)*6.2%
FICA-OASDI tax=$3,100*6.2%
FICA-OASDI tax=$192
Therefore how much FICA-OASDI tax will be withheld from the employee's pay is $192
The marginal tax rate for a lump-sum tax a. is always positive. b. is zero. c. can take on any value but must be greater than the average tax rate. d. is always negative.
Answer:
b. is zero.
Explanation:
Taxation can be defined as the involuntary or compulsory fees levied on individuals or business entities by the government to generate revenues used for funding public institutions and activities.
There are three (3) types of taxation used by the government, these are;
1. Progressive taxation: it involves charging individuals having higher incomes a higher percentage of their total income.
For instance, Citizen A pays 20% on $50,000 and Citizen B pays 15% on $36.000.
2. Proportional taxation: it involves charging both lower and higher income earners equally in proportion to their income.
For instance, Citizen A pays 10% on $50,000 and Citizen B pays 10% on $36,000.
3. Regressive taxation: it involves charging individuals with low incomes a higher percentage of their total income and vice-versa.
For instance, Citizen A pays 15% on $50,000 and Citizen B pays 20% on $36,000.
The marginal tax rate for a lump-sum tax is zero because an additional amount of money would not change it.
Ivanhoe Corporation has fixed costs of $412,800. It has a unit selling price of $4, unit variable cost of $2.40, and a target net income of $1,290,000. Compute the required sales in units to achieve its target net income.
Answer:
Break-even point in units= 1,064,250
Explanation:
Giving the following information:
Fixed costs= $412,800
Unitary variable cost= $2.4
Selling price= $4
Desired income= $1,290,000
To calculate the sales in units required, we need to use the following formula:
Break-even point in units= (fixed costs + desired profit) / contribution margin per unit
Break-even point in units= (412,800 + 1,290,000) / (4 - 2.4)
Break-even point in units= 1,064,250
Zacher Co.'s stock has a beta of 1.48, the risk-free rate is 4.25%, and the market risk premium is 5.50%. What is the firm's required rate of return
Answer:
11.95
Explanation:
The firm required rate of return can be calculated by multiplication of the risk-free rate with the addition of BETE VALUE OF THE STOCK and MARKET RISK PREMIUM which is done Bellow
the risk-free rate =4.25%,
beta = 1.48,
market risk premium =5.50%
The firm required rate of return= 4.25%+[(1.4×5.5)]
=11.95%
If you interact with people in a culture that respects its elders, you may hesitate to question the views of an older person or senior official. Which observation about how effective communicators accommodate one another is represented by your hesitation?
a. Communication similarities and differences exist in all conversations.
b. The manner in which we perceive the communication of others will determine how we evaluate our interaction with others.
c. Language and behavior convey information about social status and group membership.
d. Accommodation varies in its degree of appropriateness, and norms guide the accommodation process.
e. Conversations are always adapted to others when interacting with those who are culturally unalike yourself.
Answer:
d. Accommodation varies in its degree of appropriateness, and norms guide the accommodation process.
Explanation:
When effective communicators interact in a new environment they will try to understand the norms and expectations of the community in different situations.
In this instance the culture respects it's elders so questioning an older person or senior official may not be an acceptable action.
The communicator will need to estimate how accommodating the community is on appropriate behaviour.
A very accommodating community may tolerate certain degree of variance from their norms.
According to the video, short-run projected wealth levels calculated using geometric averages are probably ______________.
Answer: A. pessimistic
Explanation:
Geometric mean takes into account the compounding effect that the wealth would go through in the short run and this makes it more accurate which generally means lower.
Compared to other averages therefore, it will give lower figures which would tend to make it result in wealth levels that are more pessimistic than wealth levels calculated using other types of averages.
Explain why employers are becoming increasingly aware and sensitive to acts of intolerance in the workplace. List measures employers are taking to improve tolerance.
Answer:
They are more aware due to an increase in exposure and knowledge of people reporting such incidents and also an increase in the channels and avenue available for the receipt of such complaint.
The measures employers are taking to improve tolerance include creating a United environment with a set common goal. Another measure is ensuring that the workplace consists of a high amount and degree of diversity of individuals.
Answer:
Racial diversity is improving as a result of laws protecting minority populations in the United States.
Explanation: The guy above me answered it
Hilltop Paving has a levered equity cost of capital of 14.92 percent. The debt-to-value ratio is 0.4, the tax rate is 34 percent, and the pretax cost of debt is 7.2 percent. What is the estimated unlevered cost of equity?
a. 12.08%
b. 13.06%
c. 12.56%
d. 10.97%
Answer:
c. 12.56%
Explanation:
Debt-to-value=D/(D+E) =0.4=> D=0.4D + 0.4E => 0.6D = 0.4E => D/E=4/6=2/3
According to M&M proposition II with taxes,
re=r0+(D/E)(r0-rd)(1-Tax rate) . Where re= levered cost of equity(or cost of equity when the firm is levered)=.1492, r0 = unlevered cost of equity,Tax rate=34%=.34, rd=pretax cost of debt=7.2%=0.072,D/E=2/3
re = r0+(2/3) * (r0 - 0.072)*(1-.34)
=> 0.1492=r0(1+(2/3)*(1-.34)) -(2/3)*(.072)*(1-.34)
=> 0.1492 = r0(1+0.44) -0.03168
=> 0.1492 = 1.44*r0 -0.03168
r0 = (.1492+0.03168)/1.44
r0 =0.1256
r0 =12.56%
Thus, r0=unlevered cost of equity=12.56%
The estimated unlevered cost of equity is option c 12.56%.
The calculation is as follows:Debt-to-value = D ÷ (D+E) = 0
D = 0.4D + 0.4E
0.6D = 0.4E
D ÷ E = 4 ÷ 6 = 2 ÷ 3
Now
Levered cost of equity = unlevered cost of equity + (D ÷ E)(unlevered cost of equity - pretax cost of debt )(1-Tax rate)
Levered cost of equity = unlevered cost of equity+(2 ÷ 3) × ( unlevered cost of equity - 0.072) ×(1-.34)
0.1492 = unlevered cost of equity (1+(2 ÷ 3) × (1 -.34)) - (2 ÷ 3) × (.072) ×(1-.34)
0.1492 = unlevered cost of equity (1+0.44) -0.03168
0.1492 = 1.44 ×unlevered cost of equity -0.03168
unlevered cost of equity = (.1492+0.03168) ÷ 1.44
=0.1256
=12.56%
Thus, we can conclude that the correct option is c.
Learn more: brainly.com/question/6201432