Answer:
C) $128.15
Explanation:
The computation of the intrinsic value of Innovative Components’ equity per share is shown below:
= Retained earnings ÷ number of shares issued × PE ratio
= $2,014,802 ÷ 402,500 shares × 24.6
= $128.15
We simply applied the above formula so that the intrinsic value of Innovative Components’ equity per share could come
and ignored the company PE ratio of 24.6
Answer:
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Answer:
She filled for bankruptcy last year.
If the Fed buys U.S. government securities from banks, the federal funds rate falls and banks' reserves increase.
<h3>Fed's Monetary Policy</h3>
- Price stability and full employment, the Federal Reserve's two legally mandated goals, are necessary to ensure a healthy and expanding economy in the United States.
- In the past, the Fed has achieved this via modifying reserve requirements, conducting open market operations (OMO), and influencing short-term interest rates.
- By acquiring government assets, the Fed helps to boost bank reserves and bring down the federal funds rate. Government securities will be sold by the Fed on the open market.
- The Fed reduces the amount of money in circulation by selling government assets, which raises the federal funds rate.
- OMO has an impact on interest rates as well because when the Fed purchases bonds, prices are pushed up and rates are lowered; conversely, when the Fed sells bonds, prices are pushed down and rates are raised.
To learn more about Fed's Monetary Policy refer to:
brainly.com/question/14158316
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