Answer:
False
Explanation:
Retained earnings can be defined as the amount of money or income left after a firm or organization as paid out it dividends to their shareholders.
Retained earnings are also an organisation's profit which they retained or keep and this earning is reinvested for other purposes. Such purposes include: Future expansion of the the organization. Retained earnings are a form of liability to a firm.
Funds acquired by the firm through retained earnings (similar to their free cash flow), have cost attached to them. This is because the cost of retained earnings is equivalent to rate of return on re-investment of dividends of shareholders that is paid by the organization. Hence, retained earnings is equivalent to the cost of equity.
Answer:
that means the firm is very large
Answer:
CPI= 1.25 THE PROJECT FINANCE PERFORMANCE IS GOOD SO FAR
Explanation:
To know the efficiency of the use of financial resources in the project so far we need to know the Cost Performance Index (CPI)
CPI =EV/AC
EV =$50,000
AC=$40,000
CPI =$50000/$40000
CPI = 1.25
So for every dollar you use 1.25 dollars is made this means the project so far is a efficient
Answer:
$850
Explanation:
Firstly, we calculate the amount of the deposited amount that should be held in the bank reserves. According to the question, this is just 15% of the amount deposited.
This is same as 15/100 * 1000 = $150
Since $150 is kept in reserve, the amount that can be loaned is thus $1000-$150 = $850
It is this $850 that is in excess reserve
