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jekas [21]
3 years ago
11

Bank capital has both benefits and costs for the bank owners. Higher bank capital ________ the likelihood of bankruptcy, but hig

her bank capital ________ the return on equity for a given return on assets
Business
1 answer:
natima [27]3 years ago
6 0

Answer:

The full sentence is the following: Bank capital has both benefits and costs for the bank owners. Higher bank capital <em>reduces </em>the likelihood of bankruptcy, but higher bank capital <em>reduces </em>the return on equity for a given return on assets

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Rochester Corp. holds a 15% equity investment in LaCrosse Inc. Reedsburg Investments holds 45% of LaCrosse’s stock. On October 1
IceJOKER [234]

Answer:

Rochester Corp

Increase

Reedsburg Investments

No effect

Explanation:

Rochester Corp will Increase and Reedsburg Investments will show No effect

Therefore Rochester Corp. should go ahead and use the fair-value method in order to account for its own investment in LaCrosse.

This means the dividend would increase the net income while the Payment of dividends would tend to Increase the investment account on Reedsburg’s balance sheet, but will have or shown no effect on its income statement.

4 0
3 years ago
Jeffery Davids has invested in something that acts like a mutual fund and that invests in hospitals all over the country. He kno
Solnce55 [7]

Answer:

Option a: REIT

Explanation:

A REIT is simply known as Real Estate Investment Trust is a firm or organization that is responsible for pooling of investor funds and thereby investing them in real estate or uses them to so as to produce both construction and mortgage loans. REITS works by enabling companies to use the combined investments of many to purchase a real estate property and it allows both small and large investors to own a share of real estate.

Types of REITs includes Equity REITs which focus on own Properties and Mortgage REITs primarily focus own Mortgage Debt. People iinvest in REITS because it provide greater diversification, potentially higher total returns and/or lower overall risk.

5 0
2 years ago
XYZ Company is considering whether a project requiring purchasing of new equipment worth investing. The firm has spent $12,000 o
alex41 [277]

Answer:

The initial outlay of this project is $240.000

Explanation:

Consider the following formula and variables

new machine cost 220.000

installation 7.000

shipping 3.000

working capital  10.000

Initial investment outlay = new machine cost + installation+ shipping+ working capital

=220.000+7.000+3.000+10.000=240.000

4 0
2 years ago
How did laissez faire economics promote industrialization wikipedia?
UNO [17]
Laissez-faire economics helped the country industrialize. Supporters of Laissez-faire believe that government should not interfere in the economy other than <span>protect property rights and maintain peace.</span>
7 0
2 years ago
The money a bank or other lending institution is willing to lend you is called the amount of credit extended or the​ ______ of t
Sloan [31]

<span>The answer is a principal of the loan. The principal of a loan is the sum borrowed while interest is calculated on the principal. Loan principal can be used to mean three things, it can be:</span>

<span><span>- The amount you initially borrowed.
</span><span>- The original investment in a private or business asset, similar to a building, apparatus, or a automobile.
</span><span>- The balance on the loan account at any one period after the last payment has been made</span> </span>

<span> </span>

5 0
2 years ago
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