All categories

3 years ago

The federal funds rate is

Business

1 answer:

Ahat [919]3 years ago

5 0

Answer:

D. the interest rate banks charge each other for overnight loans.

Explanation:

The Federal reserve requires banks to maintain a certain minimum amount on their local Federal bank account or in their vaults each night. The remaining amount can be lent out to the public or to other commercial banks. However, if a bank is running short of funds at the end of the day, they can borrow from another bank at the overnight federal fund rate before the business opens the next day.

You might be interested in

(TCO C) Oceanside bank converts a dollar of equity into 10 cents of net income and has $9.50 in assets per dollar of equity capi

ZanzabumX [31]

Answer:

7.02%

Explanation:

(0.10/9.5)/0.15 = 7.02%

7 0

2 years ago

Garza company had sales of $144,200, sales discounts of $2,175, and sales returns of $3,460. garza company's net sales equals:

allsm [11]

I would say that Garza company would have net sales of $138565 because the sales discounts of $2175 and the returns of $3460 would have to be subtracted from the total $144,200 to get the $138,565 actual net income to Garza.

6 0

3 years ago

Harper Corp.'s sales last year were $395,000, and its year-end receivables were $42,500. Harper sells on terms that call for cus

Ilya [14]

Answer:

9 average days late

Explanation:

Days Sales Outstanding - Allowed credit period = average days late

Days Sales Outstanding

$\frac{Account \: Receivable}{Sales} \times 365 = DSO$

$\frac{42,500}{395,000} \times 365 = DSO$

DSO = 38.81012658 = 39 days

Days Sales Outstanding - Allowed credit period = average days late

39 - 30 = 9 average days late

7 0

3 years ago

Frey Co. is considering the following alternative financing plans: Plan 1 Plan 2 Issue 10% bonds (at face value) $1,080,000 $540

Sunny_sXe [5.5K]

Answer and Explanation:

Particulars Plan 1 Plan 2

Income before interest and tax $756,000 $756,000

Less: Interest expenses -108,000 -54,000

($1,080,000 ×10%) ($540,000 × 10%)

Income before tax $648,000 $702,000

Less: Income tax expense -$259,200 -$280,800

($648,000 × 40%) ($702,000 × 40%)

Net income $388,800 $421,200

Less: Preferred dividend $0 -$90,000

Profit available for common stockholder's (A) $388,800 $331,200

Divided by Number of common shares (B) 216,000 $144,000

($1,080,000 ÷ $5) ($720,000 ÷ $5)

Earning per share (A) ÷ (B) $1.8 $2.3

By dividing the profit by the number of shares we can get the earning per share and the same is shown above

4 0

3 years ago

Consolidated Industries is a diversified manufacturer with business units organized as divisions, including the Reigis Steel Div

alina1380 [7]

Answer:

All numbers are expressed in 1,000s

1. Calculate Reigis Steel Division’s unit contribution if it produced and sold 3,300,000 units during the year ended November 30, 2019.

Sales revenue $216,000

- variable costs: ($118,650)

COGS ($112,350)
selling expenses ($6,300)

contribution margin $97,350

- period costs: ($34,600)

administrative expenses ($22,000)
selling expenses ($12,600)

EBIT $62,750

contribution margin per unit = $97,350 / 3,300,000 units = $0.0295 ≈ $0.03 per unit

2. Calculate the following performance measures for 2019 for Reigis:

a. Pretax ROI, based on average operating assets employed.

ROI = net income / cost of investment = $62,750 / $382,250 = 0.1642 ≈ 16.42%

b. Residual income (RI), calculated on the basis of average operating assets employed.

RI = controllable margin – (average operating assets x required rate of return) = $62,750 - ($382,250 x 12%) = $62,750 - $45,870 = $16,880

4 0

3 years ago