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
saw5 [17]
2 years ago
10

"Problems and Applications Q2

Business
1 answer:
Marysya12 [62]2 years ago
6 0

Answer:

When the Feds sells bond in open market, it INCREASE the money supply.

If the Feds want to decrease the money supply in THE ECONOMY, it can INCREASE the reserve requirements.

When the Feds increases the interest rate it pays on reserve, the money supply will DECREASE.

When Fomc decrease it target for the federal funds rate, the money supply will INCREASE.

When Citibank repays a loan it had previously taken from the Feds, it DECREASES the money supply.

You might be interested in
Puvo, Inc., manufactures a single product In which variable manufacturing overhead is assigned on the basis of standard direct l
pantera1 [17]

Answer:

I'm figuring this out for you!

Explanation:

8 0
3 years ago
Marpor Industries has no debt and expects to generate free cash flows of $16 million each year. Marpor believes that if it perma
tatyana61 [14]

Answer and Explanation:

The computation is shown below:

a.  Marpor's value without leverage is

But before that first we have to calculate the required rate of return which is

The Required rate of return = Risk Free rate of return + Beta × market risk premium

= 5% + 1.1 × (15% - 5%)

= 16%

Now without leverage is

= Free cash flows generates ÷ required rate of return

= $16,000,000 ÷ 16%

= $100,000,000

b. And, with the new leverage is

= (Free cash flows with debt ÷ required rate of return) + (Tax rate × increase of debt)

= ($15,000,000 ÷ 0.16) + (0.35 × $40,000,000)

= $93,750,000 + $14,000,000

= $107,750,000

5 0
3 years ago
Avicorp has a $ 12.9 million debt issue​ outstanding, with a 5.9 % coupon rate. The debt has​ semi-annual coupons, the next coup
zloy xaker [14]

Answer:

a)

Pre-tax Cost Of Debt = 7.64%

b)

Tax Rate = 40%    

Post Tax cost of debt = 7.33% * (1 - 40%) = 4.58%  

So Post Tax cost of Debt = 4.58%

Explanation:

Bond Par Value =  12,900,000  

Bond Market Price 93% of face value = 11,997,000  

Years To maturity = 5.00  

Annual Interest 5.9% = 761,100

Formula = [Annual Interest + (Par Value-Market Value) / Years to Maturity] / [(Par value+Market Price*2)/3]

Year To Maturity = [761100 + (12900000 - 11997000) / 5] / (12900000 + 2*11997000) / 3

Year to maturity = 7.33%

8 0
3 years ago
Beliefs that are handed down from one generation to another and that influence decision making are _____.
Vera_Pavlovna [14]

Answer: cultural preferences.

8 0
3 years ago
Which of the following statements about your credit report is most accurate?
Darina [25.2K]

owjsbsuensienusnwjhrudbehssyhe

4 0
2 years ago
Other questions:
  • Lopez Corporation incurred the following costs while manufacturing its product:
    9·1 answer
  • Which of the following are the three characteristics that an advertising appeal should have? A. humorous, memorable, and interes
    15·1 answer
  • Consider the following list of items: Food Electric bill Clothing Health insurance These are all examples of:
    5·2 answers
  • As sales manager, Joe Batista was given the following static budget report for selling expenses in the Clothing Department of So
    5·2 answers
  • How are contract law and torts related?
    14·2 answers
  • What should the driver do if he sees a steady yellow x over the lane that he driving in
    8·1 answer
  • An online gardening magazine wants to understand why its subscriber numbers have been increasing. A data analyst discovers that
    9·1 answer
  • Rossdale Co. stock currently sells for $69.35 per share and has a beta of .90. The market risk premium is 7.30 percent and the r
    7·1 answer
  • The type of research that compares a product or service with a competitor’s is called ?
    9·1 answer
  • In the United States, ________ laws prohibit collusion between rivals. a. competitive arbitration
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!