Answer:
Pro forma financial statements
Explanation:
The term pro forma financial statements refers to a type of financial statement which estimates future financial results. It doesn't follow the GAAP, instead it is designed to focus on specific figures about a company's expected earnings. Although pro forma financials are only expected financial statements, it is still illegal to mislead investors using them.
By preparing a pro forma financial statement, Tomas will be able to estimate if his new business will be profitable or not, approximately how much financing he will need and estimate the future cash flows of his project.
Answer:
The higher the reserve requirement is set, the less the amount of funds banks will have to loan out, leading to lower money creation. Alternatively, the higher the reserve requirement the, lower the supply of loanable funds, the higher the interest rate and the slower the resulting economic growth.
Explanation:
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Answer:
D) All of the above
Explanation:
A buydown can be defined as an act of paying a specified amount of money to a lender in exchange for a lower interest rate, in order to reduce the amount to be paid periodically such as for a home-buyer.
The common purposes of a "buydown" of an interest rate would be to:
1. To help a buyer to afford a more expensive home.
2. To help a buyer qualify for a home more easily.
3. To help the seller make their home more attractive to a prospective buyer.
Answer:
C. $1000
Explanation:
The computation of the approximate market value is shown below:
Current yield = Annual coupon payment ÷ market value
8% = ($1,000 × 8%) ÷ market value
8% = $80 ÷ market value
So, the market value is
= $80 ÷ 0.08
= $1,000
Hence, the approximate market value is $1,000
Therefore the correct option is c.
We simply applied the above formula so that the correct value could come
And, the same is to be considered
Answer:
In this case, the differential cost os $18.
Explanation:
<u>The differential cost is the increase in unitary or total production value in two or more steps of the decision-making process. </u>In this case, the unitary cost of product B is not a differential cost. It would remain constant in both products, but, the additional $18 is a cost incurred only in product C.
In this case, the differential cost os $18.
