Answer:
C) In today's dollars, Chang Lee's money is worth more than Soo Lee's
Explanation:
The present value of receipts 6 year hence of amount $20,000 discounted at 7% rate would be: Discounting factor of 1 $ for 6 years at 7 % i.e expressed as:
= 20,000 × 0.6663
= $ 13,327 approx
The present value of $20,000 receipts 9 years hence discounted at 7% rate is given by:
= 20,000 × 0.5439
= 10,879 approx.
As is evident from above, Chang Lee's present value of receipts is more than those of Soo Lee's.
According to the <em>"Not Too Big Enough" </em>article, some of the <em>sources of </em><em>scale economies</em><em> in the banking and finance industry</em> are as follows:
1. Bigger banks can spread their investment (fixed) costs over more output, thereby <em>reducing the </em><em>cost per unit </em><em>and making it impossible for </em><em>smaller banks </em><em>to compete in the market</em>. Most often, the smaller banks cannot afford investments in modern banking computing power and systems management.
2. Bigger banks can <em>consolidate banking functions</em> with the <em>elimination of redundancies </em>after each merger and acquisition. The cost of redundancies also gives them economies of scale.
3. Bigger banks have access to <em>larger pools of </em>deposits and will not engage in borrowing at higher costs. Smaller banks cannot tow this line because of their small scale, lacking the required funding mix.
4. Finally, advertising works best where a bank has a large geographic spread. The cost of advertising over a large area is worth it, unlike when a small bank markets its services by advertising.
2. These economies of scale mean that Oligopolies are increasing on Wall Street, and there will be further consolidations of smaller banks. Of course, every small bank would like to engage in mergers and acquisitions to grab a share of the scale economies.
Thus, <em>as banks grow large</em>, they should be mindful that enjoying the scale economies comes with the risk of crumbling like the banks regarded as <em>"too big to fail" </em>when they build on a pack of cards.
Learn more: brainly.com/question/3156270
Answer:
35.91%
Explanation:
The formula and the computation of the debt to capital ratio is shown below:
The debt to capital ratio equals to
= (Debt ÷ total invested capital) × 100
where,
Debt = Total capital - stock price × number of shares outstanding
= $110 million - $15 × 4.7 million shares
= $110 - $70.5 million
= $39.5 million
And, the total invested capital is $110 million
So, the debt to equity ratio is
= $39.5 million ÷ $110 million
= 35.91%
Answer:
Account and Settings > Expenses > Purchase orders
Explanation:
