1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Fiesta28 [93]
3 years ago
11

The money multiplier process also works in reverse when a loan is repaid and the amount of money that is destroyed is equal to t

he loan repayment times the money multiplier.A. TrueB. False
Business
1 answer:
kiruha [24]3 years ago
8 0

Answer:

The correct answer is TRUE

You might be interested in
Allison's requires $180,000 to fund a new project next year. The firm expects to earn excess cash of $68,000 this year after all
liraira [26]

$0 is needed

<u>Explanation:</u>

As per pecking order theory the risks and consequently cost increases in the order of own cash reserves, debt and then fresh equity . Since own cash reserves and debt could take care of funding requirement, so according to the pecking order theory as studied, the fresh equity needed is $0, which means there is no requirement.

Therefore, there should be no equity capital that should be raised in order to fund the project.

The correct answer is $0 equity.

4 0
3 years ago
Corporation Q, a calendar year taxpayer, has incurred the following Section 1231 net gains and losses since its formation in 201
sp2606 [1]

Answer: $4,000 is ordinary income. No Capital gain

Explanation:

In 2017 and 2018, total Section 1231 losses are:

= 3,300 + 3,100

= $6,400

The Section 1231 gain in 2019 falls below the combined losses from the previous years of 2017 and 2018 so will not be counted as a capital gain as those losses are not yet being recaptured.

The entire $4,000 is therefore ordinary income.

7 0
3 years ago
Aggregate demand is everything produced while simple demand is one good. which statement reflects simple demand?
liq [111]
B because it’s most average
8 0
3 years ago
just paid its annual dividend of $1.15 per share. The required return is 12.3 percent and the dividend growth rate is 0.75 perce
IceJOKER [234]

Answer:

P5 = 10.41

Explanation:

To calculate the stock value with dividends for the fifth year the following formula would be used:

P5 = \frac{Div_{0}  * (1 + g)^{6} }{(r-g)}

  • Where:
  1. Div_{0} = The first Dividend Paid.
  2. G = Growth Rate.
  3. R = Required Return.
  • Given Data:

Div_{0} = $1.15

Growth Rate = 12.3%

R = 0.75%

P5 = ?

  • Substituting the values in the formula

P5 = \frac{1.15 * (1 + .0075)^{6} }{(12.3-.0075)} = 10.41

7 0
3 years ago
What are currency exchange rates based on..
Mumz [18]
Currency exchange rates based on many different factors. These factors are interest rates, inflation, public debt, deficits, terms of trade and political stability or the economic performance. Due to the many factors that affects currency exchange rate, it is almost impossible to predict where it is heading.
4 0
3 years ago
Read 2 more answers
Other questions:
  • here is much dispute over the impact that the Internet has had on today’s youth. Based on the information you learned in this le
    9·2 answers
  • Break-even analysis for a service company involves identifying the correct measure of a.direct labor for the unit of analysis. b
    9·1 answer
  • Problem 5-24 (Algorithmic) (LO. 1, 4) At the start of the current year, Blue Corporation (a calendar year taxpayer) has accumula
    14·1 answer
  • Cost-benefit analysis attempts to A. compare the real worth, rather than the market values, of various goods and services. B. co
    9·1 answer
  • With respect to gift giving and gift receiving, ____ refers to money paid before an exchange.
    7·1 answer
  • Gulph Company reported the following results for May: sales $200,000, variable costs $120,000 and fixed costs $60,000. What amou
    6·1 answer
  • The people in an economy have $10 million in money. There is only one bank that all the people deposit their money in and it hol
    6·1 answer
  • Write any two things that girls do earlier.​
    11·2 answers
  • Charlie's Chocolates' owner made investments of $66,000 and withdrawals of $28,000. The company has revenues of $99,000 and expe
    6·1 answer
  • A memo is a copy of a document transmitted via phone line using a facsimile machine.
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!