Answer:
Castle State Bank's equity multiplier is 2.2
Explanation:
Total Assets = $2,200
Total Liabilities and Equity = $2200
Net Loans = $1,200
Total Equity = $2,200 - $1,200 = $1,000
Equity multiplier = Total Assets / Total Shareholders Equity
Equity multiplier = 2,200 / $1,000
Equity multiplier = 2.2
Total Assets is equal to Total equity and Liabilities. Total equity and Liabilities includes the balance of Both equity and liabilities. Total equity is calculated by subtracting Total Loans from Total equity and Liabilities.
Answer:
Investment banks are middlemen between those with money and those with ideas who need funding. They give money a productive purpose by channelling into projects.. it's a financial service of company or corporate division that engages in advisory-based financial transactions on behalf of individuals, corporations and governments
Disability income insurance will provide income to a disabled or ill person with a waiting period before income is received. Commonly, when a person applies for disability income insurance and is taking out money from the government for disability there is a period of waiting. During this period they review all information given and decides whether or not the person applying actually qualifies for the funds they are wanting to receive. Most states have a set time frame they have to wait and also a set time frame of how long people can receive funds for.
Answer:
(i) 900 CDs
(ii) Greater than; $1,650
Explanation:
(1) Break-event point will be when the contribution margin from total sales is equal to fixed costs,
Contribution Margin = Selling price - variable cost
= $(21.5 - 9.5)
= $12
Contribution Margin *Number of CDs sold = $10,800
Break-even point for Studio A = 10,800 ÷ 12
= 900 CDs
(2) Studio A would be more profitable when the extra profit earned from per unit sale of CD exceeds the extra fixed cost given in Studio A.
Extra Contribution margin in Studio A = $(12-10)
= $2
Extra Fixed cost in Studio A = $(10,800 - 7,500)
= $3,300
Studio A should be chosen if sales is greater than (3300/2) = $1,650.
Answer:
Lowa should produce corn; Nebraska should produce Wheat
Explanation:
Two states: Iowa and Nebraska
Same two goods are produced by both of them: Corn and wheat
For lowa,
Opportunity cost of producing wheat = 3 bushels of corn
Opportunity cost of producing corn = (1 ÷ 3) bushels of wheat
For Nebraska,
Opportunity cost of producing wheat = (1 ÷ 3) bushels of corn
Opportunity cost of producing corn = 3 bushels of wheat
According to the concept of comparative advantage, a country is exporting the commodity in which it has a comparative advantage and a country has a comparative advantage in producing a commodity if the opportunity cost of producing that commodity is lower than the other country.
In our case, lowa should producing and exporting corn because the opportunity cost of producing corn is lower than the Nebraska and on the other hand, Nebraska should producing and exporting wheat because the opportunity cost of producing wheat is lower than the lowa.
