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Maurinko [17]
3 years ago
13

Suppose that as the manager of the first national​ bank, you have to make decisions about the appropriate amount of bank capital

. looking at the balance sheet of the​ bank, which like the high capital bank has a ratio of bank capital to assets of​ 10% ($10 million of capital and​ $100 million of​ assets), you are concerned that the large amount of bank capital is causing the return on equity to be too low. you conclude that the bank has a capital surplus and should increase the equity multiplier to increase the return on equity. what should you​ do?
Business
1 answer:
Papessa [141]3 years ago
7 0
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Crystal Glass recently paid $3.60 as an annual dividend. Future dividends are projected at $3.80, $4.10, and $4.25 over the next
lora16 [44]

Answer:

$41.96

Explanation:

The first thing you need to do is to calculate terminal value at the end of time t = 3. Then the intrinsic value of the stock is sum of discounted cashflow from t =1 to t = 3 (cashflows at t = 3 includes dividend as well as terminal value).

Terminal value at t = 3 = Dividend in year 4/(Required rate of return - Dividend growth)

                                     = 4.25 x (1 + 3%)/(12.5% - 3%)

                                     = 46.08

Then value of the stock is calculated as below:

Stock intrinsic value = 3.8/(1 + 12.5%) + 4.1/(1 + 12.5%)^2 + (4.25 + 46.08)/(1 + 12.5%)^3

                                  = 41.96

6 0
3 years ago
All functions and departments in the enterprise have tasks that they need to complete to produce outputs or ________ in order to
VMariaS [17]

Answer: 1. Deliverables

2. Objectives

Explanation: A deliverable is a project management term that describes tangible or intangible goods or services that are produced from the project, with the intention of being delivered to a consumer.

An objective in this context is a goal that an enterprise aspires towards achieving.

In every enterprise each section is tasked with producing outputs within each department, and deliver to customers. The intention is to of achieve the overall objectives set by the enterprise. Functions are designed to operate cohesively, with the aim of achieving these 2 aspects and ensuring that the enterprise runs smoothly and generates the best possible outcome.

7 0
3 years ago
What is a way to protect your social security number and other sensitive information from identity theft
yuradex [85]
<span>Change online account passwords frequently and your SS just lock in a safe so no one can access the number but you</span>
7 0
3 years ago
Read 2 more answers
Which of the following statements is the most accurate? Sole proprietorships are well suited for people who want to own a busine
emmasim [6.3K]

Answer:

D. Sole proprietorships are taxed at the owner's personal tax rate

Explanation:

Sole Proprietorship can be defined as a simplest form of owning and starting any business. As the term suggests, this business is onwed by an individual only or shared by married couples.

Sole properietorship is easy to set up because the owner need not to register itself to state government, therefore, because of absence of governmental involvement, it is easy to set up or deconstruct sole proprietorship.

<u>From the given options, the statement which is most accurate about a sole proprietorship is option D. The owner of sole proprietorship pays personal taxes on the profits earned by his/her business.</u>

Therefore, option D is correct.

3 0
3 years ago
Which of these options for saving money typically offers the most liquidity?
erica [24]
The option for saving money which typically offers the most liquidity is D. a basic savings account.
Liquidity refers to the fact that you can withdraw your money anytime you want. 
4 0
3 years ago
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