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3 years ago

The Federal Reserve's organization:

Business

1 answer:

damaskus [11]3 years ago

7 0

Answer: 1. Five

2. Making decisions regarding monetary policy.

3. Open market operations, buy

Explanation:

The Federal Open Market Committee usually meet eight times a year in Washington. The voting members are members of the Federal Reserve Board of Governors but only five of the president of the regional banks are members.

The Federal Open Market Committee is the Federals monetary policy making body. The Committee is responsible for the formulation of policies that are designed to promote economic growth and price stability. The country's money supply is managed by the Federal Open Market Committee.

In order to increase the number of dollars available in the economy of the United States, the Federal Reserve will purchase government bonds using the open market operations. When the Federal reserve buys bonds, there is more money available in the economy.

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Atlas Corp. is considering two mutually exclusive projects. Both require an initial investment of $10,000 at t = 0. Project S ha

snow_lady [41]

Answer:

A) $56.5

Explanation:

Data:

Project S

Initial cost $10,000

Y1 CF = $6,000

y2 CF = $8,000

Project L

Initial Investment = $10,000

Y1-Y4 CF = $4,373

Solution:

For Project S

We shall prolong the project to four years so it can be easily compared to project L

Following shall be the cashflow stream:

Y0=-$10,000 Y1=$6,000 Y2=-$2,000($8,000 CF - $10,000 outlay for prolonging the project second time) Y3=$6,000 Y4=$8,000

Now to discount the cashflow

$NPV=-10000/(1+0.0925)^0+6000/(1+0.0925)^1-2000/(1+0.0925)^2+6000/(1+0.0925)^3+8000/(1+0.0925)^4$

$NPV=4033.40$

For Project L

In order to calculate present value of the annuity, following formula will be used:

$PV=PMT(1+(1/(1+r)^n)/r$

NPV = Initial outlay - PV

$4373(1+(1/(1+0.0925)^4)/0.0925=14089.9$

$NPV=-10000+14089.9$

$NPV=4089.9$

Now, we can easily calculate how much value will the firm gain or lose if Project L is selected over Project S

$Value=NPV(L)-NPV(S)$

$Value=4033.40-4089.90$

$Value=56.50$

*all figures are rounded off to two decimal points*

7 0

3 years ago

Denver Company engages Public Company to produce a large machine, install the machine, and train their employees on the machine.

nata0808 [166]

Answer:

Results are below.

Explanation:

Giving the following information:

Machine= $800,000

Installation= $100,000

Training= $100,000

Total= 1,000,000

Denver and Public agree to a total contract price of $920,000.

First, we will determine the sales proportion:

Machine= 800,000/1,000,000= 0.8

Installation= 100,000/1,000,000= 0.1

Training= 100,000/1,000,000= 0.1

Now, we can allocate the price to each one:

Machine= 920,000*0.8= 736,000

Installation= 920,000*0.1= 92,000

Training= 920,000*0.1= 92,000

4 0

3 years ago

Here are the comparattive income statements of Georgia Development Corporation.

Oxana [17]

Answer:

When using horizontal analysis, figures are compared across different years with the subsequent year differences with the base year figures being a percentage of the base year's figures.

12/31/2017 12/31/2016 Difference Percentage

Net sales $600,000 $500,000 $100,000 20.0%

Cost of goods sold $414,000 $350,000 $64,000 18.3%

Gross profit $186,000 $150,000 $36,000 24.0%

Operating expenses $150,000 $120,000 $30,000 25.0%

Net income $36,000 $30,000 $6,000 20.0%

Net sales percentage = 100,000 / 500,000 = 20%

Cost of goods sold = 64,000 / 350,000 = 18.3%

Gross profit = 36,000 / 150,000 = 24%

Operating expenses = 30,000 / 120,000 = 25%

Net income = 6,000 / 30,000 = 20%

6 0

3 years ago

Why is it relevant that finance tends to attract large amounts of money? a. Money can be used for good or evil b. Finance attrac

SpyIntel [72]

Answer: c. Financial markets are a critical components of economic success

Explanation:

Economic success runs on companies and individuals being able to produce goods and services for the economy. To be able to do so they need capital to invest and most times they don't have that capital.

This is where Finance comes in. It connects people who do not have the capital but want to produce to those that have the capital but do not necessarily want to produce.

The huge amounts of money that finance attracts is channelled to those who need it. They then produce and the economy becomes successful.

6 0

3 years ago

Rolling Coast Inc. issued BBB bonds two years ago. These bonds provided a yield to maturity (YTM) of 11.5 percent. Long-term ris

vaieri [72.5K]

Answer: 9.2%

Explanation:

The interest rate that Rolling Coast should expect to issue new bonds will be calculated thus:

Firstly, we will calculate the previous risk premium on BBB bonds which will be:

= 11.5% - 8.7% = 2.8%

Then, the new risk premium on BBB bonds will be:

= Previous risk premium / 2

= 2.8% / 2

= 1.4%

Then, the interest rate that Rolling Coast should expect to issue new bonds will be:

= 7.8% + 1.4%

= 9.2%

8 0

3 years ago