Answer:
The correct answer is option a and c.
Explanation:
The fed cannot control the money supply up to a great extent in the real world. This is because the feds can control the amount of required reserves that a commercial bank holds. But they cannot control the amount of excess reserves that a bank decides to hold which affects the money supply.
At the same time, the feds cannot control the amount of money that the households decide to hold as currency which also affects the money supply.
The amount of excess reserves a bank decides to hold affects the deposit-reserve ratio. While the amount of money that households decide to hold affects the currency deposit ratio. Both of these ratios affect the money supply.
Answer:
the present value of its growth opportunities (PVGO) is $0.56
Explanation:
The computation of the present value of growth opportunities is shown below:
= Price per share - (Earnings ÷ required rate of return)
= $41 - ($3.64 ÷ 9%)
= $41 - $40.44
= $0.56
hence, the present value of its growth opportunities (PVGO) is $0.56
We simply applied the above formula so that the correct value could come
And, the same is to be considered
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The four-firm concentration ratio is a term used to refer to the market share of the four largest firms. In this given example, the total number of output every year is 100 watches per year. Then, 90 of which are coming from the four largest firm. Thus, the four-firm concentration ratio is equal to 90%.
