Answer:
Option B
Explanation:
Option B:
Prevent a company from becoming overly focused on the near term and losing sight of larger trends and opportunities.
Answer:
The debt to equity mix = 74.65% - 25.35%
Explanation:
The computation of the debt to equity mix is shown below:
Debt is
= Mortgages + Bond
= $18 + $35
= $53 million
And, the Equity is
= Retained earnings + Cash in hand
= $5 + $13
= $18 million
Now
Percentage of debt financing
= $53 ÷ ($53 + $18)
= 74.65%
And, percentage of equity financing is
= $18 ÷ ($53 + $18)
= 25.35%
And, finally
The debt to equity mix = 74.65% - 25.35%
Answer:
This question is incomplete since the interest rate is not included and so is the requirement. However, if it asking for the annual contributions Bonnie can make, you can calculate it as shown below and assuming a discount rate of 10%;
Explanation:
Since Bonnie's goal is $300,000, this will be the future value and you can use a financial calculator to solve for recurring deposits (PMT);
Time to retirement; N = 12
Interest rate; I/Y = 10%
Future value; FV = 300,000
One time present cashflow; PV = 0
then compute the recurring deposits; CPT PMT = 14,028.995
Therefore, she will need to contribute $14,029 every year to meet her goal.
Answer:
<u>Generally accepted accounting principles</u>
Explanation:
Generally accepted accounting principles abbreviated as GAAPs , refer to set of accounting rules and principles to ensure clarity, consistency of reported information and to enhance reliability and comparability of accounting information.
GAAPs were prescribed by Financial Accounting Standard Board (FASB) of the United States. The accountants of public companies in United States are supposed to abide by GAAP principles while compiling accounts and preparing financial statements.
Thus, GAAPs lay emphasis upon presenting financial information which is relevant to the shareholders, which is true and can be relied upon , which is consistent and which can be compared to deduce past trends and for forming opinions and arriving at conclusions.
Answer:
(a) What is the amount by which Carla Bank's liabilities have changed?
Carla Bank's liabilities increased by $15,000 (bank deposits are liabilities).
(b) Calculate the change in required reserves for Carla Bank.
Carla Bank's reserves must increase by $15,000 x 5% = $750
(c) What is the dollar value of the maximum amount of new loans Carla Bank can initially make because of Christopher's deposit?
Carla Bank can loan $15,000 x 95% = $14,250
(d) Based on the central bank's open-market purchase of bonds, calculate the maximum amount by which the money supply can change throughout the banking system.
Money multiplier = 1 / 5% = 20
The money supply has the potential to increase by $15,000 x 20 = $300,000
(e) How will the change in the money supply in part (d) affect aggregate demand in the short run? Explain.
Aggregate demand will increase since the total money supply increases. This should also help to decrease the interest rates and foster investment.
