All of the above given options contributed to the financial crisis of 2008.
Option D
<h3>
<u>Explanation:</u> </h3>
The 2008 financial crisis has been cumulative of many factors which started in early 2000. Over the period of time from 2000-2008, the government sought to reduce federal funds rates increasing liquidity. The interest rates started increasing and the real estate market was at its saturation point, furthermore, there was also a subprime crisis in terms of loans and mortgages which negatively affected the market.
2008 recession was the climax of all the bad financial decisions that prevailed for many years prior. However, the recession was a global problem and many governments sought to reduce rates, purchased distressed assets and also sought to the nationalization of some financial institutions.
Answer:
$0.875
Explanation:
The computation of the stock price that changes upon the announcement is shown below:
As it given that
The corporate tax is 35%
So there is an effective disadvantage i.e. retention
Also, the stock price would be decline by 35% of cash
i.e.
= 35% × $250 million ÷ 100 million outstanding
= $0.875
Hence, the stock price is $0.875
Answer
The answer and procedures of the exercise are attached in the following archives.
Explanation
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
Answer:
See explanation section
Explanation:
December 31 Interest receivable Debit $4,000
Interest revenue Credit $4,000
Calculation: $600,000 × 8% × (1 ÷ 12) = $48,000 × (1 ÷ 12) = $4,000. Therefore, the monthly interest revenue = $4,000.
<em>As Starr corporation provided a loan on December 1, they received interest revenue for 3 months. However, as the fiscal year closes on December 31, the interest revenue is owed for one month only. </em>