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tresset_1 [31]
3 years ago
9

Answer the question on the basis of the following table for a commercial bank or thrift:

Business
1 answer:
Lady bird [3.3K]3 years ago
6 0
If the legal reserve ratio falls from 25 percent to 10 percent, excess reserves of this single bank will rise by $6,000 and the monetary multiplier will increase from 4 to 10. The correct answer is D.
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Bitstar global inc. is a soft-drink manufacturing company. kelly, the production manager, works with a human resource consultant
Ludmilka [50]
<span>machine. She uses a simulative approach to increase the effectiveness and efficiency. If Kelly is at the output stage of the process, then she is identifying the inputs utilized in the process for measuring the productivity.</span>
6 0
3 years ago
Pacific Packaging's ROE last year was only 3%, but its management has developed a new operating plan that calls for a debt-to-ca
777dan777 [17]

Answer:

Explanation:

Total asset turnover = Sales/total assets

3.2= 14000000/Total assets

Total assets = 4375000

E/A = 1-D/A = 1-0.45 = 0.55

Equity = E/A*assets = 0.55*4375000=2406250

Net income = (EBIT-interest)*(1-tax rate)

=(1344000-546000)*(1-0.25)=598500

ROE = Net income/total equity

ROE% = 598500/2406250=0.248

ROE% = 24.8

6 0
3 years ago
A scope limitation sufficient to preclude an unqualified opinion always will result when management:__________
vovikov84 [41]

Answer:

The answer is D.

Explanation:

A scope limitation in audit means circumstances hindering an auditor from carrying out his duties according to the audit procedure. A scope limitation can make an auditor issue a qualified opinion or a disclaimer of opinion depending on the materiality of the issue.

Back to the question, a scope limitation sufficient to preclude an unqualified opinion always will result when management refuses to provide a representation letter acknowledging its responsibility for the fair presentation of the financial statements in conformity with General Accepted Accounting Principle (GAAP)

4 0
3 years ago
Within the context of the Ricardian model of trade, suppose that the introduction of a vaccine against a virus increases the pro
vitfil [10]

Within the context of the Ricardian model of trade, suppose that the introduction of a vaccine against a virus increases the productivity of workers in the developed world. What would you expect wages to do? fall mainly in the developing countries.

3 0
3 years ago
GenX has a target capital structure of 40 percent common stock, 5 percent preferred stock, and 55 percent debt. Its cost of equi
AVprozaik [17]

Answer:

12.085 %

Explanation:

WACC = Cost of Equity x Weight of Equity + Cost of Preference Stock x Weight of Preference Stock + Cost of Debt x Weight of Debt

Remember to use the after tax cost of debt :

after tax cost of debt = interest x ( 1 - tax rate)

                                   = 8.00 % x (1 - 0.35)

                                   = 5.20 %

therefore,

WACC = 22.00 % x 0.40 + 8.50 % x 0.05 + 5.20 % x 0.55

           = 12.085 %

thus

the firm's WACC given a tax rate of 35 percent is 12.085 %

6 0
3 years ago
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