Answer:
c. cash, checking account balances, and travelers' checks.
Explanation:
Money Supply is the concept that means the amount of the liquid financial products and total currency in the market or economy. It is regulated the macro-economically by the monetary policy. So, there are types of measures of money supply or stock:
-M0: narrowly, it means the hard currency in circulation
-MB: it equals M0+ the hard currency which are not technically in circulation and in bank reserves.
-M1: it is the most common one and equals M0 plus checking accounts plus travelers’ checks and other checkable deposits.
-M2: covers M1 and saving accounts and CDs.
-M3: it surrounds the larger deposits.
-MZM: finally, this indicates the money market deposits.
That’s why we could notice that M1 narrowly means the cash, checking account and travelers’ checks.
Answer:
$710.84 million
Explanation:
Net income = $35 million
Depreciation = $20 million
Capital expenditures = $7 million
Tax rate = 21%
D/E ratio = 0.4
Growth rate = 6%
Equity beta = 1.25
So, firm's asset beta = Equity beta/(1 + D/E*(1-T))
= 1.25/(1 + 0.4*(1-0.21))
= 0.94985
So, Free Cash Flow to the Firm= NI + Depreciation - Capital expenditures
= 35 + 20 - 7
= $48 million
Risk free rate Rf = 5%
Market risk premium = 7.5%
So, firm cost of capital using CAPM is Rf + Beta*(MRP)
Kc = 5 + 0.94985*7.5
Kc = 12.1239
So, Firms value using constant dividend growth model:
FV = FCF*(1+g)/(Kc-g)
FV = 48*1.06 / 0.121239-0.06
FV = 50.88 / 0.061239
FV = 830.8430901876255
FV = $830.84 million
Debt = $120 million
Market Value of equity = FV - Debt
Market Value of equity = $830.84 million - $120 million
Market Value of equity = $710.84 million
Answer:
$4,330
Explanation:
the amount that needs to be depreciated = purchase price - residual value = $193,000 - $19,800 = $173,200
depreciation per year using straight line method = $173,200 / 10 = $17,320
depreciation per month = $17,320 / 12 = $1,443.33 per month
we must record 3 months of depreciation expense = 3 months x $1,443.33 per month = $4,330
December 31, 2021
Dr Depreciation expense 4,330
Cr Accumulated depreciation - machinery 4,330
Exchange rates, government policies, and shipping are three risks your company may face if it participates in global trade.
Personal human capital is defined as the <em>present value </em>of all <em>future </em>wages. So, you can increase your personal human capital by increasing your future earning potential. There are many ways to do this including investing in your education, working on your social and professional networking skills, and getting on the job training.
