Giving brainliest for CORRECT awnser.

Banks that have national charters must join the Federal Reserve and are subjected to its

aleksandrvk [35]

Answer: True

Explanation:

The Federal Reserve requires that all banks with National charters become members of the Federal Reserve so that they may have a say in the way the Fed runs its operations. State banks are not required to join but can if they meet some requirements.

The Office of Comptroller of the Currency (OCC) continually supervises and examines national banks to ensure that they are engaged in best practices regarding their operations and treatment of customers.

8 0

3 years ago

A company purchased land for $90,000 cash. real estate brokers' commission was $5,000 and $7,000 was spent for demolishing an ol

Fed [463]

Based in the historical cost principle, the total cost of the land would be the summation of all cost, either direct or indirect.

Therefore it would be:

Cost of Land = $90,000 cash + $5,000 commission + $7,000 demolishing

Cost of Land = $102,000

3 0

4 years ago

American Exploration, Inc., a natural gas producer, is trying to decide whether to revise its target capital structure. Curren

Marat540 [252]

Answer:

a) 9.00 %

b) 7.80 %

c) yes the weight of the debt increases here is more risk in the investment as the debt payment are mandatory and failing to do so result in bankruptcy while the stock can wait to receive dividends if the income statement are good enough

d) 9.00 %

e) The increase in debt may lñead to an increase in return of the stockholders if they consider the stock riskier than before and will raise their return until the WACC equalize at the initial point beforethe trade-off occurs

Explanation:

a)

$WACC = K_e(\frac{E}{E+D}) + K_d(1-t)(\frac{D}{E+D})$

Ke 0.12

Equity weight 0.5

Kd(1-t) = after tax cost of debt = 0.06

Debt Weight = 0.5

$WACC = 0.12(0.5) + 0.06(0.5)$

WACC 9.00000%

c)

$WACC = K_e(\frac{E}{E+D}) + K_d(1-t)(\frac{D}{E+D})$

Ke 0.12

Equity weight 0.3

Kd(1-t) = after tax cost of debt = 0.06

Debt Weight 0.7

$WACC = 0.12(0.3) + 0.06(0.7)$

WACC 7.80000%

d)

$WACC = K_e(\frac{E}{E+D}) + K_d(1-t)(\frac{D}{E+D})$

Ke 0.16

Equity weight 0.3

Kd(1-t) = after tax cost of debt = 0.06

Debt Weight 0.7

$WACC = 0.16(0.3) + 0.06(0.7)$

WACC 9.00000%

3 0

3 years ago

A.8 B.15 C.26 D.52 if anyon can help i would be so happy

Alika [10]

I think the answer is D.52

3 0

3 years ago

John Fare purchased $6,000 worth of equipment by making a $1000 down payment and promising to pay the remainder of the cost in s

vesna_86 [32]

Answer:

C $ 596.39

total payment 7,156.68

Interest expense 2,156.68

Explanation:

6,000 - 1,000 = 5,000 amount to finance

We will calcualte the cuota of an annuity of 6 years with semianual payment at 12% annual rate.

$PV \div \frac{1-(1+r)^{-time} }{rate} = C\\$

PV $5,000.00

time 12 (6 years times 2 payment per year)

rate 0.06 (12% annual we divide by 2 to get semiannual)

$5000 \times \frac{1-(1+0.06)^{-12} }{0.06} = C\\$

C $ 596.39

The total amount paid will be the cuota times the time of the loan:

Total amount paid

596.39 x 12 = 7,156.68‬

The interest will be the difference between the total amount paid and the principal of the loan

Interest paid

total payment 7,156.68

principal (5,000)

Interest expense 2,156.68

7 0

3 years ago