<span>He has experience in banking, but feels like he would be better suited in a credit union workplace. He feels that the working atmosphere is better and the customers are more pleasurable to work with.</span>
Answer:
The stock should sell for = $2.01
Explanation:
<em>The Dividend Valuation Model is a technique used to value the worth of an asset. According to this model, the worth of an asset is the sum of the present values of its future cash flows discounted at the required rate of return. </em>
<em>The model is given as </em>
P = D× g/(r-g)
P- stock value, g- growth rate , r-m required rate of return
PV of dividend in year 30 = 12/(0.15- 0.06)=133.3333333
PV of dividend in year in year 0 = 133.3333333 × 1.15^(-30)= 2.01
The stock should sell for = $2.01
Answer:
The effective rate on the bank loan is 27%
Explanation:
The effective rate of Interest
= ($11,800/$302,000)*(360Days/52days)
= 0.039*6.92
=27%
The answer would be, "<span>Longer response times, sometimes six to eight weeks".</span>
Answer:
The correct answer is: non-bank public increases its holdings of currency outside the banking system.
Explanation:
A currency drain refers to the situation where there is an increase in currency held outside the banking system. When the public holds more money outside the banking system, it reduces the total reserves of the banks. The excess reserves get reduced as well.
The currency gets drained from the banking system, so banks can create less money. This causes a reduction in the money supply.