Answer: $50000
Explanation:
Based on the information that's been given in the question, firstly we need to calculate the excess reserves which will be:
= $4500 - (10% × $40000)
= $4500 - $4000
= $500
Then, the money supply that's expanded will be:
= Excess reserve / Reserve ratio
= $5000 / 10%
= $5000 / 0.1
= $50000
Therefore, the answer is $50,000.
Answer: The optimal capital structure maximizes the firm’s stock price.
Explanation:
The Capital Structure of a company refers to the proportion of debt vs equity that it chooses to use to fund its Assets and operations.
The goal of management is to use the capital structure to fund the company in such a way that the market value of a company increases.
The Market value is reflected by the firm's stock price so the optimal capital structure is meant to maximize the firm’s stock price.
An audit program which is done on a random basis is: c) discriminant function system program.
<h3>What is an
audit program?</h3>
An audit program is also referred to as audit plan and it can be defined as a series of directions that an auditor and his or her team members must follow, in order to achieve the proper execution of an auditing process.
<h3>The types of
audit program.</h3>
In Business management, there are different types of audit program and these include the following:
- National research program.
- Discriminant function system program.
In conclusion, discriminant function system program simply refers to a types of audit program which is done on a random basis.
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Cash is debit amount is, 84000. Preferred stock-$50 par value is credit, 30000. Paid in capital in excess of par-preferred is credit, 54000.
What is market value?
Market value is the amount an asset would sell for on the open market, or the estimation of an equity or company's worth by the financial community.
Date Accounts title & explanation Debit Credit
cash (600×140) 84000
Preferred stock-$50 par value, 30000
Paid in capital in excess of par-preferred, 54000
Hence, the significance of the market value is aforementioned.
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