Solution:
The reserve ratio is 10%.
Money multiplier = 
= 
= 10.
So, the money multiplier increases by 10.
Money supply = amount x money multiplier = 1,000 x 10 = 10000
Therefore, because any certain items are equivalent, the rise in the currency supply is 10000 dollars.
When the FED sells 1,000 million worth of debt, this would further increase the monetary market, as the investments are fresh funds and the income from the bank is now used in the money supply.
Answer:
Preference dividend = 9% x $65 x 5,700 shares
= $33,345
Dividend paid to ordinary shareholders = $50,000 - $33,345
= $16,655
Explanation:
The dividend paid to preferred stockholders is 9% of the par value multiplied by number of preferred stock outstanding. The dividend paid to common stockholders is the difference between total dividend paid and dividend paid to preferred stock holders.
Can you give a better explanation
Answer:
A conglomerate is a business combination merging more than three businesses that make unrelated products.
Explanation:
A conglomerate is a group of companies with different activities. This business concept spread to Europe from the United States after World War II. The benefits were considered to increase the company's long-term profitability by spreading risk to various business areas.
However, conglomeration often led to an increase in administrative costs. Furthermore, the conglomerate's management rarely had the competence to handle a number of companies in different industries. The conglomerates that were listed on the stock exchange were regularly valued lower than the total market value of the subsidiaries, indicating that the stock market did not believe in the very idea of creating such corporate groups. The risk diversification that the conglomerate was aiming for could equally well be achieved by the individual investor in his own equity portfolio. Therefore, since the 1970s, many conglomerates have split up, and most companies have instead focused on creating competitive advantages through their core business.
Answer: A business must cover its opportunity costs as well as its out-of-pocket expenses to be truly profitable.
Explanation:
A firm's implicit costs are its opportunity costs. Opportunity costs are the returns that a company would have made had it invested in the next best venture than the one they are currently in.
If a business is to be truly profitable, it is important that they earn enough to cover both their out of pocket costs as well as their opportunity costs that way it can be definitively said that the venture that they went into was better than the next best venture they could have gone into.
