Answer:
the cash and cash equivalent is $29,420
Explanation:
The computation of cash and cash equivalent is given below:
Money market fund balance $2790
Cash in Bank Account $21,430
Cash in Petty cash funds $200
U.S Treasury bill purchased on Dec.15 $5,000
cash and cash equivalent $29420
Hence, the cash and cash equivalent is $29,420
The same is to be considered and relevant too
I would suggest Alex look into mutual funds. From there, a financial planner can help him decide how much or how little he would like to invest in retail stocks. The stocks and bonds will be based on the risk and amount of money Alex is willing to put in or lose in the event that happens.
Answer:
The answer is 30%
Explanation:
Solution
Given that:
Project A
Project A costs = $350
Cash flows =$250 and $250 (next 2 years)
Project B
Project B costs =$300
Cash flow = $300 and $100
Now what is the crossover rate for these projects.
Thus
Year Project A Project B A-B B-A
0 -350 -300 -50 50
1 250 300 -50 50
2 250 100 150 -150
IRR 27% 26% 30% 30%
So,
CF = CF1/(1+r)^1 + CF2/(1+r)^2
$-50 = $-50/(1+r)^1 + $150/(1+r)^2
r = 30%
CF = CF1/(1+r)^1 + CF2/(1+r)^2
$50 = $50/(1+r)^1 + $-150/(1+r)^2
r = 30%
Hence, the cross over rate for these project is 30%
Note:
IRR =Internal rate of return
CF =Cash flow
r = rate
Answer:
A. True
B. Required reserve = $30 million, Excess reserve = $10 million.
Explanation:
Requirement A
The statement is true because if the bank has vast capital, It can further reinvest that capital into various businesses. If it can reinvest the money, the bank can earn more revenues. More earnings of the bank lead to enable the confidence of the investors as the bank can provide more dividends to its shareholders.
Requirement B
We know,
Required reserve = Deposits × Required Reserve Ratio
Given,
Deposits = $200 million
Required Reserve Ratio = 15%
Therefore, Required reserve = $200 × 15%
Required reserve = $30 million
From the balance sheet, we can say that there is an excess reserve.
Excess reserve = Reserves - Required reserve
Excess reserve = ($40 - $30) million.
Excess reserve = $10 million.