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vodka [1.7K]
3 years ago
13

Chou Co. has a net income of $43,000, assets at the beginning of the year are $250,000 and assets at the end of the year are $30

0,000. Compute its return on assets.
Business
1 answer:
Scrat [10]3 years ago
7 0

Answer:

15.64%

Explanation:

Return on Assets = \frac{Net Income}{Average Total Assets}

= \frac{43,000}{(250,000 + 300,000)/2}  = \frac{43,000}{275,000}

= 0.1564

= 15.64%.

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If the equilibrium interest rate in the money market is 5%, then at an interest rate of 2% sellers of interest-bearing financial
expeople1 [14]

Answer: must offer higher

Explanation:

The financial world of investment is inter-correlated and products can sometimes be substitutes for one another. What this means is that if one financial product is not offering enough return on investment or is risky or for any other reason shakes their confidence in it, then investors tend to run to financial products that are perceived as better.

This is why when interest rates are stable and stocks are volatile, stock markets tend to lose value and bond markets sometimes gain value as investors leave the stock market and come to the bond market.

In the scenario described, the interest rate in the money market is 5%. If interest bearing financial assets are only at 2%, investors will leave/ not invest in those interest bearing bonds because the rate is lower. The sellers of such assets will therefore have to make them more attractive by increasing the the interest rates to find willing buyers.

4 0
3 years ago
If the required reserve ratio is 10 percent, currency in circulation is $400 billion, checkable deposits are $800 billion, and e
Ksju [112]

The required reserve ratio is 10 percent, currency in circulation is $400 billion, checkable deposits are $800 billion, and excess reserves total $0.8

If the required reserve is 10%, the currency reserve multiplier is 10 and the currency supply should be 10 times the reserve. A reserve requirement ratio of 10% also means that banks can lend out 90% of their deposits.

The reserve ratio can be calculated by simply dividing the amount a bank must hold in reserves by the amount the bank has on deposit. For example, if he has $10 million in bank deposits and needs to hold $500,000 in reserves, the required reserve ratio is 1/20, or 5%.

The ratio of required reserves to deposits. A reserve ratio of 10% means that banks must hold 10% of their deposits as a reserve.

Learn more about reserve ratio at

brainly.com/question/13758092

#SPJ4

3 0
1 year ago
Fred ran short on cash and borrowed​ $300 through a payday loan company. the company charged him a fee of​ $60 to borrow the​ $3
Ne4ueva [31]
<span>The answer is 1.43 % per day. Calculations: Formula for simple interest: I=PRT, where I=interest; P= borrowed amount; R=rate of interest in percentage; T=time for repayment hence; P=$300, I=$60, T=14 days, then R=? R={(I/PT) *100)}% per day={(60/300*14)*100}=1.43 % per day interest rate (R) that Fred was charged for the aforementioned loan was 1.43 % per day</span>
3 0
3 years ago
Locus Company has total fixed costs of $118,000. Its product sells for $55 per unit and variable costs amount to $39 per unit. N
Dmitriy789 [7]

Answer:

8,850 units

Explanation:

We know that

Net income = Unit sales × (Selling price per unit - variable cost per unit) - Fixed cost

$23,600 = Unit sales × ($55 - $39) - $118,000

$23,600 = Unit sales × $16 - $118,000

$23,600 +$118,000 = $16 unit sales

So, unit sales = 8,850 units

The net income is computed below:

= Given percentage × Total fixed cost

= 20% × $118,000

= $23,600

6 0
3 years ago
America's basic cold war strategy emerged when the Truman administration adopted the recommendations of U.S. diplomat and Soviet
Goshia [24]

Answer:

The containment doctrine.

Explanation:

American government's fear of Soviet expansion (communism) triggered the entrance of the US into the cold war. During the 1940s the US developed an strategy of nuclear deterrence since it lacked sufficient amount of troops to confront the Soviet army in eastern Europe. The Truman Doctrine helped to expand the cold war to the whole world.

3 0
3 years ago
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