The inconsistency described above is known as cognitive dissonance. It is a theory that describes the tendency of an individual to find consistency of the cognitive functions. When this is not met, some behaviors and attitudes are to be changed in order to eliminate the inconsistency.
Answer:
Southwestern Mutual Bank
This would increase the loans account and the deposit account by $100 respectively.
Explanation:
a) Data and Calculations:
Southwestern Mutual Bank
Balance Sheet
Assets Liabilities and Owners' Equity
Reserves $150 Deposits $1,200
Loans $600 Debt $200
Securities $750 Capital (owners' equity) $100
Total assets $1,500 Total liabilities + equity $1,500
New customer deposit = $100
New loans made by the owners = $100
Answer: The same amount of dollars
When it comes to the financial level, a replicating portfolio as the name implies, is a repetition of specific flows of a given asset, so it must be constituted with the same resources. In this case, the same amount of cash would be needed to create the replica.
Answer:
Present value = $35.00326585 rounded off to $35.00
Explanation:
Using the dividend discount model, we calculate the price of the stock today. It values the stock based on the present value of the expected future dividends from the stock. To calculate the present value of the stock, we will use the following formula,
Present value = D1 / (1+r) + D2 / (1+r)^2 + ... + Dn / (1+r)^n +
[(Dn * (1+g) / (r - g)) / (1+r)^n]
Where,
- r is the required rate of return
- g is the constant growth rate in dividends
- n is the number of years
Present value = 5 / (1+0.155) + 6.25 / (1+0.155)^2 + 4.75 / (1+0.155)^3 +
3 / (1+0.155)^4 + [(3 * (1+0.07) / (0.155 - 0.07)) / (1+0.155)^4]
Present value = $35.00326585 rounded off to $35.00
Answer:
Overhead costs are often affected by many issues and are frequently too complex to be explained by any one factor.
Explanation:
An overhead cost is not directly defined, to be that of material, or labor, or any other unit, overhead include, many factors, electricity usage, machine hours usage, water usage, or the capacity utilization of machinery, and various other factors. Since its computation and allocation is not clear many a times, a single overhead like that of electricity, has many factors, ideal usage of electricity, or machine hours used in production or simply the total cost of overheads for that month or building or etc: and its utilization. In short, to conclude we can state that overhead costs are complex in nature.
All other options are false.
Final Answer
Overhead costs are often affected by many issues and are frequently too complex to be explained by any one factor.
