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3 years ago

Why might a bank be willing to borrow funds from other banks at a higher rate than the rate at which it can borrow from the fed?

1 answer:

3 0

Because when a bank borrows money from the Fed it has to out toward collateral. Central banks in turn will want extra regulation, depending on the banks rep. As well as banks borrow too frequently from the Fed, resulting in the Fed restricting the ability to borrow in the future.
hope this helps!

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If a company's free cash flows are expected to grow at a constant rate of 5% a year, which of the following statements is CORREC

Oliga [24]

Answer:

The correct option is e. The company's value of operations one year from now is expected to be 5% above the current price.

Explanation:

Free cash flow (FCF) refers to the cash that a company generates after taking into consideration cash outflows needed to support operations and maintain the capital assets of the company.

When the free cash flow of a company is expected to grow at a certain constant rate, the implication is that the the value of operations of that company one year from the current period is expected to be higher than the current price.

Based on the explanation above, the correct option is e. The company's value of operations one year from now is expected to be 5% above the current price.

5 0

3 years ago

Which of these is a function of customer relationship management applications?

REY [17]

Answer:A

Explanation:

6 0

3 years ago

Harry, Hermione, and Ron formed an S corporation called Bumblebore. Harry and Hermione both contributed cash of $30,000 to get t

tatyana61 [14]

Answer:

Harry and Hermione $30,000

Ron’s $19,300

Explanation:

Calculation to determine What tax bases will each of the three have in his or her stock of Bumblebore

Based on the information given we were told that both Harry and Hermione contributed cash of the amount of $30,000 to get things started which means that Harry and Hermione TAX BASES will be $30,000

Calculation for Ron’s Tax bases

Using this formula

Ron’s Tax bases=Basis of the property contributed-Mortgage

Let plug in the formula

Ron’s Tax bases=$60,000-$40,700

Ron’s Tax bases=$19,300

Therefore Harry and Hermione tax based will be $30,000 and Ron’s Tax bases will be $19,300

7 0

2 years ago

The Artisan Cheese Company in Florida has decided to add a new line of imported cheeses to its offering. The company president (

KonstantinChe [14]

Answer:

Cheeses from England.

Explanation:

First, let us define what Marketing Mix is:

This refers to the number of strategies a company employs to promote its goods and services in the market. The four Ps of the marketing mix include Product, Price, Place and Promotion.

The goal of a marketing strategy is to create awareness among the target audience.

Feedback and surveys are ways in which a company informs its marketing mix strategy. Therefore, if it has been determined from the customer feedback from company surveys and cheese tasting that the Product the customers prefer is Cheese from England, then that is what should be produced and promoted.

It cannot be over emphasized that companies are in business because of the customers, so their opinion takes precedence, as the saying goes, customer is always right. Therefore, if the need of the customer is not met, the company will make no profits.

The company president and product director will have to do what the customer wants.

4 0

3 years ago

1. Why do firms choose to make large increases in their dividends or start a stock repurchase program?2. Why do firms choose to

sergij07 [2.7K]

Answer with Explanation:

Requirement 1:

The companies whose products are in growth phase or the company is cash cow which has a well diversified products does not have to invest in adding a new product line because their earnings are already stable enough or that they don't have to invest much because sufficient profits are left after extracting for investments. Increase in dividends has two meanings that either the management is confident enough that they think that the company will be able to earn more in the future and they will achieve better position in future which is a good news in the stock exchange and for investors as well and investor invest more in the company's ordinary stock.

Company start Stock repurchase program which is to buyback its previously issued ordinary shares which is because the management thinks that the stock is undervalued and thus they repurchase their ordinary shares so that the stock will go up in near future and this will benefit the company and the existing shareholders as well. This also helps in increasing earnings per share, return on equity, etc because the equity is reduced by share repurchase program.

Stock repurchase program is also run by the organization because they don't find any attractive opportunities. This means that the company does not have any large investment opportunities which means growth in revenue and profit can not be expected in the future years. Thus when the company starts repurchasing of stock the investor starts selling their stocks.

Requirement 2:

If the company thinks that they can increase the worth of shareholders beyond their shareholder's expectation then they don't pay dividend and invest in projects to increase the sales growth, profits and market share significantly in the coming future.

Some long term shareholders think this is a great news whereas short term investors who are looking for dividends will sell the stock which means that the stock value may fall in near future but in long run the company stock value increase when the investment will start showing its results.

8 0

3 years ago