All categories

3 years ago

Methods of determining Capital Requirements

Business

1 answer:

Eva8 [605]3 years ago

7 0

REGRESSION ANALYSIS METHOD

OPERATING CYCLE METHOD

PERCENTAGE OF SALES METHOD

You might be interested in

If Congress ends an investment tax credit that used to subsidize domestic investment, how would this affect the market for loana

marin [14]

Answer: Demand will fall, Interest rates will fall

Explanation:

The investment tax credit would have encouraged more companies to seek loanable funds in order to embark on investment opportunities because they would be taxed less. This increase in demand in the market for loanable funds would have led to rates rising to keep up with demand.

If Congress were to end this credit, the incentive to invest and avoid tax would be gone. Companies would therefore demand less loanable funds and with this drop in demand there will be a drop in interest rates as well to entice people to borrow at the lower rates.

3 0

3 years ago

In a barter system, a baker is MOST LIKELY to A) earn money from creating bread. B) buy wheat from a farmer. C) sell bread to a

Archy [21]

Barter means exchange since there was no currency back then so the answer would be D.

3 0

3 years ago

Read 2 more answers

This year Nathan transferred $1 million to an irrevocable trust established for the benefit of his nephew. The trustee is direct

iren [92.7K]

Answer:

Zero- there is a $10 Million exemption equivalent ( d )

Explanation:

Annual exemption to be ignored = $15000

$1 million to an irrevocable trust

taxable gifts = $6 million

A) The amount of gift tax Nathan must remit in 2017 ignoring annual exemption

The gift tax must remit in 2017 is zero because there is a $10 million exemption because of the annual exception ( even if the annual exception is ignored ) and the lifetime benefits on taxable gifts that Nathan has is approximately $11.4 million, hence he wont be remitting any amount on gift tax in 2017

7 0

3 years ago

You have $130,000 to invest in a portfolio containing Stock X and Stock Y. Your goal is to create a portfolio that has an expect

Finger [1]

Answer:

Let X be the amount invested in stock A

Let 1-X be the amount invested in stock B

Expected rate = (Required rate of X* X) + (Required ratebof Y * (1-X))

0.146 = (0.128 * X) + (0.078 * (1-X))

0.146 = 0.128X + 0.078 - 0.078X

0.146 - 0.078 = 0.128X - 0.078X

X = 0.068/0.05

X = 1.36

Amount to be invested in Stick X = $130,000 * 1.36

= $176,000

Amount to be invested in Stock Y = (1-X) * Available amount

= (1-1.36) * $130,000

= $46,800

Therefore, the amount to be invested in Stick Y = -$46,800

Calculation of the portfolio beta

bp = w1b1 + w2b2 + ........ + wnbn

bp = (1.36*1.3) + ((-0.36) * 1.05)

bp = 1.768 - 0.378

bp = 1.29

Therefore, the portfolio beta is 1.39

7 0

3 years ago

Administrative oversight given to self-managed teams does not typically include

trapecia [35]

<span>It does not include implementing change. The team is only responsible for stringent standards of conduct, self-enforcement of legal and ethical rules and effective and efficient use of resources. Implementing change is the responsibility other people or outside forces.</span>

6 0

3 years ago