Expected return on portfolio = 0.1053 or 10.53%
Expected return on portfolio = 0.33*0.084 + 0.15*0.098 + 0.52*0.121
Expected return on portfolio = 0.02772 + 0.0147 + 0.06292
Expected return on portfolio = 0.1053 or 10.53%
The weight of each asset is multiplied by its projected return to determine the expected return. The total predicted return for your portfolio may then be calculated by adding the figures for each investment. Consequently, the equation is as follows: Expected Portfolio Return = (Asset 1 Weight x Expected Return) + (Asset 2 Weight x Expected Return).
What is a reasonable projected return on a portfolio?
For long-term stock market investments, the majority of investors view an average annual rate of return of 10% or above to be a good ROI. However, keep in mind that this is an average. There will be years with lower returns or even years with negative returns.
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a. what is the last day that kathy can purchase the stock (trade date) and still receive that dividend? b. what day does this stock begin trading ex dividend?
If a shareholder is to receive a dividend, they need to be listed on the company's records on the date of record.
What do you mean by dividend?
A corporation's payout of profits to its shareholders is known as a dividend. A corporation is able to distribute a portion of its profit as a dividend to shareholders when it generates a profit or surplus. Any remaining funds are withdrawn and reinvested back into the company.Most dividends paid to shareholders in the United States are cash dividends, which are payments given in cash on a per-share basis. For instance, an investor holding 100 shares would receive $20 in cash if the corporation paid a dividend of 20 cents per share. A percentage increase in the number of shares owned is what constitutes a stock dividend.To know more about Dividend here
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a firm requires an investment of $20,000 and will return $26,500 after one year. if the firm borrows $6000 at 7%, what is the return on levered equity? group of answer choices 35% 43% 52% 61%
After all the required adjustments, the return on levered equity is 43.42%. Hence, Option B is correct.
Investments are assets that are bought or invested in to increase wealth and set aside cash from hard-earned income or appreciation. The main purpose of an investment is to create an additional source of income or to generate a profit over a certain amount of time.
Investment is the commitment of funds toward the acquisition of an asset with the goal of achieving a growth in value over time. There are many different investment products available to investors, each with advantages and disadvantages of their own.
Calculation for portion of the investment that is financed by equity is:
20,000 - 6,000 = $14,000
Calculation for return on investment net of interest rate is:
26,500 - 20,000 - (6,000 × 7%) = $6,080
Calculation for the return on levered equity is:
6080 / 14000 = 43.42%.
Therefore, Option B is correct.
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which of the following statements about the covenant of quiet enjoyment is true? a) the grantor promises to obtain and deliver any instrument needed to make the title good. b) the grantor warrants that he or she is the owner and has the right to convey title to the property. c) the grantor guarantees that if the title fails in the future, he or she will compensate the grantee. d) the grantor ensures that the title will be good against the title claims of third parties.
The grantor assures that title will be decent against third-party title claims.
What exactly does the term "grantor" imply?
The Grantor is either the seller (on deeds) or the borrower (on mortgages). Typically, the Grantor is the person who signed the agreement. In estate, a grantee is the person who receives the property, and a grantor is the person who transfers ownership rights to another person.
Would be a grantee a benefactor?
A grantee-beneficiary is a person or entity able to hold title to real estate who is designated inside a benefit deed to obtain an ownership interest in the estate upon the owner's death. A successor grantee-beneficiary is included, but is not limited to, a grantee-beneficiary.
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the newly licensed rn has accepted a position in a hospital. what are the logical actions expected of this new employee?
The logical acts required of this new employee are to possess the theoretical knowledge required to perform fundamental patient care and decision-making.
What is a Position?An individual or other organization has a position when they hold (or have sold short) a certain quantity of a security, assets, or piece of property. A trader or trader takes a position when they execute a buy order, which indicates a bullish intent, or when they sell short stocks, which indicates a bearish intent.
What does a position's primary objective entail?By clearly identifying the task to be done in connection with the overall aims of the work unit, an appropriate position description aids the employee in understanding what is expected of them.
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bluebird manufacturing has received a special one-time order for 15,000 bird feeders at $3.00 per unit. bluebird currently produces and sells 75,000 units at $7.00 each. this level represents 80% of its capacity. production costs for these units are $3.50 per unit, which includes $2.25 of variable costs and $1.25 of fixed costs. if the special offer is accepted, there will be no incremental fixed cost. if bluebird accepts this additional business, the effect on income will be:
If bluebird manufacturing has received a special one-time order for 15,000 bird feeders at $3.00 per unit. the effect on income will be: $11,250 increase.
How to find the Effect on income?Using this formula to find the effect on income
Effect on income= Special on-time order × (Bird feeders per unit × Variable costs)
Let plug in the formula
Effect on income= 15,000×($3.00 per unit - $2.25)
Effect on income= 15,000 × 0.75
Effect on income= $11,250 increase
Therefore the effect on income is $11,250 increase.
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choose all that are true about p and np. a. all np-complete problems are np-hard problems. b. if there is an np-complete problem that is in p, then p
All np-complete problems are np-hard problems is true about p and np.
What is np-complete problem?Nondeterministic polynomial-time complete is the abbreviation for the term "NP-complete". The phrase "nondeterministic" in this name relates to nondeterministic Turing machines, which are a means to mathematically formalize the concept of a brute-force search process. Polynomial time describes the length of time that is regarded as "fast" for a nondeterministic Turing machine to complete the entire search or for a deterministic method to check a single result. The quality of being able to replicate everything in the same complexity class is referred to as being "complete." This type of problem's complexity class is known as NP, which stands for "nondeterministic polynomial time." Even though an issue is not in NP, it is said to be NP-hard if anything in NP can be turned into it in polynomial time.
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huri lives on a small tree farm in south america. she uses the trees to build handcrafted decorations, which she sells online. recently, the government notified her that they would be seizing her property in order to use the lumber for a building project. this situation can best be described as an example of
The correct answer is Expropriation. Expropriation is the process by which a government seizes privately owned property to be put to use for the general welfare of the populace.
What is expropriation?Expropriation is when a government seizes privately owned property against the owners' will, presumably so that it can be used for the general welfare of the populace.
In order to construct roads, trains, airports, or other infrastructure projects, properties are typically taken by force.
Since the Fifth Amendment of the Constitution prohibits the expropriation of private property "without just compensation" for "public purpose," the property owner must be compensated for the seizure.
Before using eminent domain, governments are required to make a purchase offer on the subject property.
Property is seized through condemnation proceedings, a use of the phrase that should not be confused with property that is in disrepair, if and when it is expropriated.
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you are the project manager of a large project. one of your contractors sends you an email requesting to reduce the specification that requires ten tests be conducted down to only eight tests. what should you do first as the project manager?
We should suggest that the contractor provide the sure that participants board a modification request (CCB). This is so that CCB may approve any procedural changes that pertain to the project.
Which notion of a manager fits the bill?A manager is a person who oversees the assignment of resources or the organization of personnel activities within an organization. Therefore, a manager is a person who performs managerial duties. Corporate strategy, judgment call, concern, collaboration, delegating, and multitasking are just a few of the talents that make up management.
What does a manager do?The manager's main responsibility is to coordinate the efforts of all team members and provide the finest outcomes possible to assure the organization's expansion.
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during an interview, ramon tells a success story about his fundraising abilities, including the information that he obtained three grants for a total of $140,000 in funds for his organization. which part of the star method does this statement relate to?
Ramon discusses his accomplishment in generating money during an interview, mentioning that he was able to secure three grants for a combined $140,000 for his group. This statement refers to the results of the STAR method.
A behavioural-based interview question can be answered in a methodical way using the STAR approach by outlining the precise setting, task, action, and outcome of the scenario one is describing.
Situation: Describe the circumstance you found yourself in or the work you had to complete. One must describe a particular instance or circumstance, not a broad overview of one's past actions. To ensure that the interviewer understands, provide sufficient detail. This circumstance may have occurred in prior employment, while volunteering, or in any other pertinent circumstance.
Task-What was the task you were pursuing?
Action: Keep the attention on one while providing sufficient detail about the steps one did to remedy the matter. What precise actions did one take, and what did one contribute specifically? Be careful when discussing a team or group to avoid describing what one did. Not the actual project one completed. When describing acts, use "I" rather than "we."
Result: Describe how activities turned out, and don't be embarrassed to claim responsibility. What took place? How did everything come to a close? What did one manage to do? What did one discover? Make sure one's response has several affirmative outcomes.
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based on the concentration ratio, which industry is the most competitive? a. industry b b. industry d c. industry a d. industry c
The concept is simple if the marketplace share data is precise and readily available. It explains the level of competition in the marketplace and the positioning of the businesses operating in a given sector.
Why do you use the term "industry"?industry: a collection of profitable businesses or organizations that create or provide products, services, or income sources. The four main categories of industries in economics are primary, second, tertiary, & quaternary; secondary enterprises are further divided into heavy and light categories.
What kind of industry would that be?Industries are frequently divided into categories based on the goods and services they provide. For instance, all producers who create and sell pizza on the market are included in the pizza industry. It's crucial to understand that for a
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owner's equity is question 35 options: a. capital injected by owner in the business. b. capital invested by family members that are also partners c. capital borrowed from family members that are not partners in the business d. capital borrowed from a financing institution. both a
Option A is correct due to the fact capital injection is an investment of capital into a project, corporation, or investment, frequently as cash, fairness, or responsibility.
Owner's equity is the all-out well-worth of a business enterprise's belongings which have a place with a proprietor once the liabilities had been settled. proprietor's equity is and huge concept to be one of the 3 precept parts of an agency's finances, as it's far more important for the bookkeeping condition: proprietor's fairness = assets - Liabilities. This situation is most regularly linked with sole agents. all the more via and massive, it's far the monetary possession of the enterprise*.
The above statement is not false because This sales goal is appropriate to all businesses that sell actual items or administrations. we can set an amount for our sales group to accomplish inside a timeline. The Goals of a Business. The basic role of a business is to boost benefits for its proprietors or partners while keeping up corporate social duty.
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what process do top managers rely on to compare different investment alternatives within and across countries so they can make choices about where the firm should invest its scarce financial resources?
Capital budgeting process top managers rely on to compare different investment alternatives within and across countries so they can make choices about where the firm should invest its scarce financial resources.
Capital budgeting is the process businesses use to evaluate and prioritize investments in projects that have long-term financial implications. It involves the evaluation of a project's expected returns (cash flows) and the assessment of the associated risks. The goal of capital budgeting is to identify projects that will create the most value for the business in the long run.
This includes analyzing the project's expected cash flows, its impact on the company's financial statements, and any associated risks. The capital budgeting process helps businesses make informed decisions when investing in long-term projects. It helps to ensure that resources are allocated efficiently and that only projects with the highest potential return are pursued. Capital budgeting also allows businesses to assess the potential value of projects before committing resources, helping to reduce the risk of loss.
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which of the following will increase the price of a money market instrument computed using a discount yield? i. bank discount rate ii. bond equivalent rate iii. annual percentage rate iv. effective annual rate i and iv only i and iii only ii and iv only i and ii only ii and iii only
Effective annual rate i and iv only will increase the price of a money market instrument.
I) Bank Discount Rate- The interest rate that an investor will earn for purchasing short-term money market instruments like Treasury bills and commercial paper is referred to as the bank discount rate. An investor can figure out the net gain they would realise on their investment if they retain it to maturity by computing the bank discount rate.
IV) Effective annual rate - The effective annual interest rate is the return on an investment or the rate owed in interest on a loan when compounding is taken into account. We get interest on interest. It is more accurate.
Effective annual yield =(1+HPY^t)
HPY= Holding period yield
t= No.of days held until maturity
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gourmand, an upscale restaurant chain, planned to open a new restaurant in downtown smallville on memorial day weekend. ye olde antique shoppe, a merchant located next door to gourmand, was looking forward to the increased sales it would realize from diners who dropped in from next door. gourmand's contractor did not finish the building on time, so gourmand did not open for the big holiday weekend. can ye olde antique shoppe sue the contractor since it lost profits because of the failure to perform on time? a. yes, because it is a business beneficiary of the contract between contractor and gourmand. b. yes, because it is an intended commercial beneficiary of the contract between contractor and gourmand. c. no, because it is a donor beneficiary of the contract between contractor and gourmand. d. no, because it is an incidental beneficiary of the contract between contractor and gourmand.
No, since it is a beneficiary by incident of the agreement between the contractor and the Gourmand.
What does a business mentality entail?A person with a business mindset naturally moves the goods inside a way that should increase sales. They logically choose locations where both items will sell most effectively. They appear to also have a sixth instinct for what will compel customers to make purchases. They are preoccupied with closing the transaction above anything else.
Briefing:Considering that it is a secondary benefit of the agreement between the constructor and the supplier Due of Ye Olde Antique Shoppe's lawsuit against the contract, the freelancer could sue Ye Olde Antique Shoppe.
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on january 1, 2020, hammons company signed a five-year noncancelable lease for equipment. hammons was required to make annual payments of $150,000 at the beginning of each year with the title passing to hammons at the end of the lease. hammons appropriately accounts for this lease transaction as a finance lease. hammons uses the straight-line method of amortization for all of its leased assets, and the leased equipment has an estimated useful life of 7 years with no salvage value. if the lease payments were determined to have a present value of $625,479 at an effective interest rate of 10%, what should hammons record as interest expense in 2021?
$47,548 Hammons will record as interest expense in 2021. Hammons will pay $150,000 at the beginning of 2020 and accumulate interest on the remaining balance of the lease during 2020.
Therefore, the interest expense will be ($625,479 - $150,000) x 10% = $47,548.
The fee incurred by a business for borrowed cash is known as an interest expenditure. A non-operating item that appears on the income statement is interest expense. It stands for the interest due on all borrowings, including bonds, loans, convertible debt, and credit lines. In essence, it is determined by multiplying the interest rate by the debt's outstanding principal. Instead of the amount of interest paid over the reporting period, interest expense on the income statement shows interest accrued during that time. While interest costs are tax deductible for businesses, they may not be in the case of an individual, depending on their jurisdiction and the purpose of the loan.
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according to the systems perspective, transformational processes are responsible for turning multiple choice question. outputs into feedback. outputs into inputs. feedback into outputs. inputs into outputs.
According to the systems perspective, transformational processes are responsible for turning is inputs into outputs.
What is input?Input refers to any information or data that is sent to a computer for processing. It is often sent to the computer from a device such as a keyboard, mouse, or another device.Putting it simply, it is the act of entering data into a computer. Once the data has been entered into the computer it can be processed and the inputted instruction can be carried out.In addition to coming from an external device, an input can come from a piece of software. This data is typically dealt with automatically.There is a massive range of objects that can serve as input devices.
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which insurance is the older type of managed healthcare system that takes both the financial risks associated with providing medical services?
Fee-for-service (FFS) insurance is the more traditional form of managed healthcare that bears both the financial risks related to providing medical services.
What is meant by Fee-for-service insurance?Fee-for-service Unlike receiving a fixed payment for a specific patient or group of patients, the traditional insurance model of payment for healthcare professionals is based on the services they offer.
For each service, such as a doctor's visit or a laboratory test, the insurance provider is compensated under this model by paying a charge to the healthcare provider. The insurance company reimburses the provider for all expenses related to rendering the service, and the provider is paid a fee for each task completed.
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What is the monthly interest payment for an
account with a balance of $120.00 and an A.P.R.
of 10%?
A. $12.00
C. $10.00
B. $1.00
D. $4.00
Answer:
B. $1.00
Explanation:
Here,
=10% of $120
=$12
Then,
or, 1 year = 12 months
or, 12 months = $12
1 month = $1
So, the monthly interest payment for an
account with a balance of $120.00 and an A.P.R. of 10% is option b, $1.
Without planning an enterprie would oon diintegrate, it action would be a random a leave campering before an autumn wind, and it employee a confued a ant in an upturned ant hill"
Planning always involves making some assumptions about what will happen in the future.
In other words, before completing the total company plan, it is necessary to define the future settings, such as marketing, pricing, government policy, tax structure, business cycle, etc.
Business forecasting: The economic, social, political, and global environments all have a significant impact on business. Management ought to have a system in place to foresee changes in such a setting. Forecasts that are accurate will help the plan work.
Dynamic Manager: Those in charge of planning tasks should have a flexible mindset. They should take the appropriate steps to create planning premises and make business projections. 125 A manager should never forget that planning is forward-looking and that he is making plans for an extremely unpredictable future.
Flexibility is a necessary component of planning because the environment in which modern businesses operate is always evolving. There should always be room in the plans for essential additions, deletions, or changes as the situation dictates in order to achieve effective results.
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Complete Question -
"Without planning an enterprise would soon disintegrate, its actions would be as random as leaves scampering before an autumn wind, and its employee as confused as ants in an upturned ant hill". Comment
how success and failure in practice of basic management functions affect the organization. Support with real examples.
consider a highway that everyone has access to. assume this highway is congested and, hence, every time a driver gets on the highway, it reduces the utility of the highway for the next driver. what kind of good is the congested highway? club good. public good. common resource. private good.
According to the question, a congested highway seems to be a type of club good.
How are Club Goods operated?Club goods are one subgroup of public goods that possess the property of non-rivalrousness, one of the two basic features of public goods. In economics, club goods also are occasionally referred to as scarce or artificially scarce products. Club items include things like cable tv, cinemas, wireless internet, toll roads, etc. Club goods are typically offered by what are called as natural monopolies and have nearly zero marginal costs. Club merchandise also has a fake scarcity.
What four different types of goods are there?The four product categories are public goods, private goods, common resources, and club goods depending on rival in consumption & excludability.
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Supply chain management is a key means of differentiation for a firm and a critical component in marketing and corporate strategy.
a. True
b. False
The claim that management of supply chains is a crucial element of marketing and management consulting and a major way for a company to differentiate itself from the competition is correct.
Supply chain management: What is it?At its most basic level, management of supply chains (SCM) is the control of the movement of materials, information, and money associated with a good or service from the acquisition of materials to the shipment of the good at the final location.
Has the supply chain a future?Future distribution channels will have to be far more dynamic in order to forecast, plan for, and react to a quickly changing demand as well as a constantly shifting product and variation. In other words, distribution channels will need to adapt.
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a company is considering a capital investment of $45,000 in new equipment which will improve production and increase cash flows by $15,000 per year for 6 years. the company has a hurdle rate of 10%. the break-even time is approximately: present value of 1 at 10%: period 1: 0.9091; period 2: 0.8264; period 3: 0.7513; period 4: 0.6830; period 5: 0.6209; period 6: 0.5645. multiple choice question. 4.75 years. 3.75 years. 4.00 years. 3.00 years.
The break-even time takes roughly three years, according to the question.
What Does Break even Time Mean?The period of time it requires for an investment to recover its initial cost is known as the "break-even time." The amount is calculated by counting the days until the investment's net cash flows equal its original cost that used a prevent value table. The period of time needed for the discounted cash streams produced by a business to equal its initial cost is known as the break-even point. For instance, if a project's break even point is two years, it will take two years for it to produce $1,000 on a discount basis to pay off its $1,000 beginning cost.
Briefing-Break even time = Initial cash investment / Annual inflow
= $45000 / $15000
= 3 years
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assume that great britain and the united states can both produce wheat (w) and cloth (c). the amount of wheat and cloth that each nation can produce in one day is presented in the table below. comparative advantage wheat cloth great britain 40 70 united states 150 90 instructions: round your answers to two decimal places. a. use the information above to compute the opportunity cost of producing 1 unit of wheat in each country. for great britain, the opportunity cost of producing 1 unit of wheat is unit(s) of cloth. for the united states, the opportunity cost of producing 1 unit of wheat is unit(s) of cloth. b. which country has the comparative advantage in producing wheat? (click to select) c. use the information above to compute the opportunity cost of producing 1 unit of cloth in each country. for great britain, the opportunity cost of producing 1 unit of cloth is unit(s) of wheat. for the united states, the opportunity cost of producing 1 unit of cloth is unit(s) of wheat. d. which country has the comparative advantage in producing cloth? (click to select)
Amount of wheat and cloth that each nation can produce in one day is provided, then
a) Wheat production in units of cloths :
In Britain : 1 wheat = 1.75 cloth
In U.S : 1 wheat = 0.60 cloth
b) United States has the comparative advantage in producing wheat.
c) Cloth production in units of wheats :
In Britain : 1 cloth = 0.57 wheat
In U.S : 1 cloth = 1.66 wheat
d) Great Britain has the comparative advantage in producing cloth.
Assume that great britain and the united states can both produce wheat (w) and cloth (c).
One day production table for each country :
wheat. Cloth
Britan 40 70
United States 150 90
a) Britain:
40 wheat = 70 cloth
So, 1 wheat = 70/40 = 1.75cloth
So, opportunity cost to produce 1 unit wheat is
1.75 unit cloths.
United States :
150 wheat = 90 cloths
So, 1 wheat = 90/150 = 0.60 cloth
So, opportunity cost to produce 1 unit wheat is
0.60 unit cloths.
b) U.S has comparative advantage in producing
wheat since it has lower opportunity cost.
c) Britain:
1 cloth = 40/70 = 0.57 wheat
US:
1 cloth = 150/90 = 1.66 wheat
d) Britain has comparative advantage in producing cloth since it has opportunity cost lower.
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to encourage members of the marketing team to be alert for any marketing opportunity, riff frequently tells them about the time he gave a new store jacket to a local celebrity after her own jacket was torn. for the rest of the day, the celebrity wore the jacket, which prominently displayed the store's name. this is an example of a:
Riff routinely shares the story of the time he presented a new shop jacket to a local celebrity after her old jacket was torn with the marketing team to inspire them to be on the lookout for any marketing opportunity. The famous person wore the jacket, which prominently featured the name of the shop, for the remainder of the day. An illustration of a story is this.
An event, whether real or imagined, is told in a narrative when it is done such that the audience, simply by hearing the story, has an experience or learns something. A tale can be used to convey knowledge, experience, attitude, or point of view.
The transmission of cultural information from one generation to the next is preserved via stories. Essentially, tales preserve cultures. Stories provide us with an eternal connection to stories, myths, and archetypes from the past. However, they also link us to enduring truths about the human condition and the wider universe.
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a company issued 140 shares of $100 par value common stock for $16,600 cash. the total amount of paid-in capital in excess of par is:
the total amount of paid-in capital in excess of par is $2600.
Capital in excess of par is the amount paid by investors to a company for its stock, in excess of the par value of the stock. Par value, which is typically displayed on the face of the stock certificate, is the legal capital per share.
Number of shares issued x Par value per share equals the par value of the common stock.
= 140 x 100
= $14,000
$16,600 is the cash received from the sale of shares.
Cash received from the issuance of shares - the par value of common stock = paid-in capital in excess of par.
= 16,600-14,000
= $2,600
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income tax collections: a. rise during periods of prosperity, thus reduce federal budget deficits. b. fall during periods of prosperity, thus increase federal budget deficits. c. rise during recessions, thus increase the problem of unemployment. d. fall during recessions, thus increase the problem of unemployment.
The correct answer is option a, hence rise during periods of prosperity, thus reducing federal budget deficits.
What is the meaning of income tax?Every individual that works and even companies are subject to income taxes. The foundation for calculating individual income tax is the income received.
Now, when government expenditure exceeds its income, which includes taxes, fees, and investment returns, there is a federal budget deficit. The national or federal government debt increases as a result of deficits.
Since the burden is presumably on the persons who pay it, it is typically categorized as a direct tax. Net earnings, which are calculated as the difference between receipts and authorized expenses, are subject to corporate income tax.
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organizational culture is made up of artifacts and creations, values, and a set of assumptions. describes values that are stated.
The answer to this question is espoused values. These are Values that senior managers of a business convey publicly on its behalf or attribute to the organisation in documents like annual reports.
What are espoused values?Values that a person or organization declares to believe in and want are known as espoused values.
This holds true for both individuals and organizations. The success of every person or business is built on core beliefs.
Many people often evaluate others to determine their true values. To establish a foundation of trust and enduring relationships, people must share their values.
We frequently have a tendency to act according to our feelings and how a certain event affects us, ignoring the principles we claim to uphold.
Anger or any other undesirable habit that goes against our ideals could be the cause. However, we frequently regret our actions after the fact. It's evidence that we are in fact human.
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which financial statement would you look at to determine whether a company will be able to pay for the goods when payment is due in 30 days?
The correct answer is Income Statement. A corporation can create either a single-step income statement or a multi-step income statement, two different sorts of income statements.
Businesses might prepare the income statement in one of two ways. To start, you can create your income statement using the one-step method. An income statement displays the revenues, costs, and profitability of a business over time.
It is also sometimes referred to as an income statement or a profit-and-loss (P&L) statement. It displays your sales revenue for goods and services. expenses for running your firm and generating money.
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same question, 100 million in new reserves, but now there is a reserve requirement of 20%. how many loans? how much new money supply?
Same question, 100 million in new reserves, but now there is a reserve requirement of 20%. Total money supply is 800 million.
Here now for question 4 total reserve is = 200million
And the reserve requirements is = 20% or 0.20
Than required reserve in money is = 200 mill × 0.20
Required reserve = 40 million
Left money for loan = 200 milli - 40 million
Left money for loan = 160 million
Money supply/ Multipler = 1/ required reserve
Money supply = 1/0.20
Money supply/ Multipler = 5 times
Total money supply will be = 5× 160million
Total money supply = 800 million
What makes it a bank?Whenever Italian merchants inside the Renaissance formed agreements to lend and lend money next to a bench, the term bank is derived from the Italian word banco, which means bench. Then set your coins upon the bench. Simple financial documents have been around since the beginning of time.
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stark company's most recent balance sheet reported total assets of $1,860,000, total liabilities of $820,000, and total equity of $1,040,000. its debt-to-equity ratio is:
According to Stark Company's most current balance sheet, its total assets stood at $1,860,000, liabilities were $820,000, and equity was $1,040,000. Its debt-to-equity ratio is 0.78.
What are total assets?The total assets of a person or corporation are all of their belongings.. Assets are things with economic value that an owner uses over time to reap benefits. If the owner is a business, these assets can be viewed on the balance sheet of the corporation and are frequently included in the accounting records.. Find the company's total assets on the relevant balance sheet. Add up all of the liabilities, which ought to be listed separately on the balance sheet. Add the total liabilities to the amount of total shareholder equity. Entire assets will equal total liabilities + total equity.
Why is total assets important?Assets are crucial because they can: provide income; boost the worth of your company. aid in the operation of your firm. Assets are priceless items that your company either owns outright or leases in order to operate, such as property and equipment. They can also be used to build your business's assets, including its goodwill, customer relationships, and intellectual property. A useful resource that you own or rent and that helps to run your business is referred to as an asset in the business world. In addition to tangible objects like computers and modest amounts of money, intangible assets like goodwill, reputation, and brand awareness can also be used as resources.
Briefing:Calculations for the debt to equity ratio include:
Debt-to-equity ratio = Debt/Equity
Total liabilities=debt=$820,000
Total equity=$1,040,000
∴ Debt-to-equity ratio = $820,000/$1,040,000
=0.78
As a result, Stark Company's debt to equity ratio is 0.78.
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