Answer:
the required reserves will increase by 1,200 dollars
Explanation:
the required reserve ratio is 20%
for each dollar the bank receive in deposit it can loan up to 80% and must keep 20%
the multiplier will be: 1 / 0.2 = 5
each dollar of deposit will increase the money supply by 5
and each dollar withdraw will decrease money supply by 5
Therefore, for this deposit of 6,000 dollars the bank will kept:
$6,000 x 20% = $1,200
A competitive analysis.
A competitive analysis examines the strengths and weaknesses of your competition in relation you your business.
Answer: expanding into additional businesses that unlock possibilities for a comprehensive cost enhancement strategy.
Explanation:
The options include:
purchasing a powerful and well-known brand name that could be transferred to the products of other businesses and thereby used as a lever for driving up the sales and profits of such businesses.
opening up new avenues for reducing costs by diversifying into closely related businesses such as direct-to-consumer streaming of media content.
leveraging existing resources and capabilities by expanding into related industries where these same resource strengths were key success factors and valuable competitive assets.
expanding into additional businesses that unlock possibilities for a comprehensive cost enhancement strategy.
expanding into industries whose technologies and products complemented its present media and entertainment businesses.
The least likely among Disney's considerations in completing its acquisition of Fox will be the expansion into additional businesses that unlock possibilities for a comprehensive cost enhancement strategy.
Answer: Price of stock at year end =$53
Explanation:
we first compute the Expected rate of return using the CAPM FORMULAE that
Expected return =risk-free rate + Beta ( Market return - risk free rate)
Expected return=6% + 1.2 ( 16%-6%)
Expected return= 0.06 + 1.2 (10%)
Expected return=0.06+ 0.12
Expected return=0.18
Using the formulae Po= D1 / R-g to find the growth rate
Where Po= current price of stock at $50
D1= Dividend at $6 at end of year
R = Expected return = 0.18
50= 6/ 0.18-g
50(0.18-g) =6
9-50g=6
50g=9-6
g= 3/50
g=0.06 = 6%
Now that we have gotten the growth rate and expected return, we can now determine the price the investors are expected to sell the stock at the end of year.
Price of stock = D( 1-g) / R-g
= 6( 1+0.06)/ 0.18 -0.06
=6+0.36/0.12
=6.36/0.12= $53
Negative attitude can lead to high turnover
