Answer:
$3,325
Explanation:
Reserves are maintained to fulfil the customers withdrawal requirement. It is imposed by the State bank over the Banks to hold a specific percent of cash as reserves. Bank hold the reserves and invest or utilize the residual in the market.
In this question 5% of $3,500 will be reserved and the remaining $3,325 will be available for the money supply in the market in different forms.
the maximum possible increase in the money supply as a result of your bank deposit is $3,325.
Answer:
It would sell for 761.49 dollars
Explanation:
Generally, stock prices are determined on stock market based on supply and demand mechanism. However, according to the discount dividend model present value of stock could be calculated as dividend per share/(cost of capital equity-growth rate). Growth rate between year 1 and 2 is 3-4/4 equals to -0.25%. From year 2 until year 3 it is 46-3/3 equals to 14.33%. Now we can take arithmetic average of these two and we get 7.04%( 14.33-0.25/2). Finally share could sell today for 46+3+4/(14-7.04%) equals to 761.49 dollars
Answer:
Option D
Explanation:
When providing an online service, a company firstly targets to reach the maximum audience. With the increase in reach of audience the chances and feasibility of sales also increases.
But, still there are many customers who desire to have a free trial of service, in order to ensure themselves about the quality and detailed description of service.
In case company agrees to provide free trial, those customers are also satisfied and tend to avail the online service.
Thus, although the sales is directly proportional to the number of visitors, but it would definitely increase by providing the free trial of online service, as ensures more satisfaction in customers.
Final Answer
Option D
Answer:
Given:
Annual lease = $22000
Annual revenue = $380000
Payments = $120000
Utilities = $8000
Value (entrepreneur's talent ) = $80000
Forgone Entrepreneur's interest = $6000
Therefore, we'll first compute the accounting profit using the following formula :
<em>Accounting profit = Annual revenue - Annual lease - Payments - Utilities </em>
<em>Accounting profit = 380000 - 22000 - 120000 - 8000 </em>
<em>Accounting profit =$230000
</em>
Therefore, the economics profit can be evaluated using the following formula:
<em>Economic profit = Accounting profit - Opportunity cost (Salary of entrepreneur) - Value (entrepreneur's talent) - Forgone Entrepreneur's interest</em>
<em>= 230000 - 50000 - 80000 - 6000</em>
<em>= $94000</em>
