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3 years ago

Explain why two employees at a company, earning the same gross pay, might have different net pays

1 answer:

6 0

One employee may have more deductions than the other employee, such as a larger number of dependents, or may be choosing to pay more of her paycheck into Social Security.

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bank run is ____________.A.an extraordinarily large volume of withdrawals driven by a concern that a bank will run out of liqui

evablogger [386]

Answer:

Option A

Explanation:

In simple words, Bank runs refers to the scenario when a significant amount of individuals begin to make bank withdrawals since they are afraid the organizations will run out of liquidity. Usually a run on the banks is the product of confusion instead of a true bankruptcy.

Bank run caused by panic that drives a bank into real bankruptcy provides a traditional example of a prediction that fulfills itself. The institution does defaults risk, as customers are continuing to withdraw money. So what starts out as fear will ultimately turn into some kind of true fallback situation.

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3 years ago

Two roadway design are under consideration. Design 1A will cost $3 million to build and $100,000 per year to maintain. Design 1B

melomori [17]

Answer:

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Explanation:

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3 years ago

Synovec Corporation is expected to pay the following dividends over the next four years: $5.20, $16.20, $21.20, and $3.00. After

umka21 [38]

Answer:

Present value = $92.6899 rounded off to $92.69

Explanation:

Using the dividend discount model, we calculate the price of the stock today. It values the stock based on the present value of the expected future dividends from the stock. To calculate the present value of the next four dividends, we will use the following formula,

Present value = D1 / (1+r) + D2 / (1+r)^2 + D3 / (1+r)^3 + D4 / (1+r)^4 +

[(D4 * (1+g) / (r - g)) / (1+r)^4]

Where,

r is the required rate of return
g is the constant growth rate in dividends

Present value = 5.2 / (1+0.09) + 16.2 / (1+0.09)^2 + 21.2 / (1+0.09)^3 +

3 / (1+0.09)^4 + [(3 * (1+0.055) / (0.09 - 0.055)) / (1+0.09)^4]

Present value = $92.6899 rounded off to $92.69

6 0

3 years ago

When banks have less money in required reserves they lend more money out to people and business. So Lower reserves usually help

RideAnS [48]

Answer:

Lower reserves increase the money supply in the economy.

Banks can either keep deposits in reserves or give them out as loans.

the lower the reserve ratio, the higher the money multiplier and the higher the money supply.

Lowering the reserves can be a form of expansionary monetary policy

Explanation:

Fractional banking is a banking system where a portion of customer's deposits is kept as reserves while remaining portion is lent out. The amount kept as reserves is determined by the required reserve ratio set by the Central bank.

If the required reserve ratio is 10% and $100 is deposited, reserves would be $10 and $90 would be lent out

Increase in the total value of checkable deposit is determined by the money multiplier

Money multiplier = 1 / reserve requirement

Increase in value of total deposit = amount deposited / reserve requirement

Assume 100 is deposited in a bank and the reserve requirement is 10%

Increase in value of total deposit = 100 / 0.1 = 1000

Imagine that the reserve is reduced to 5%

Increase in value of total deposit = 100 / 0.05 = 2000

reducing the reserve requirement increased the value of total deposit and thus the money supply in the economy

7 0

3 years ago

Xavier Co. wants to purchase a machine for $37,900 with a four year life and a $1,000 salvage value. Xavier requires an 8% retur

ale4655 [162]

Answer:

Net present value of machine is $5,561

Explanation:

Net present value is the method of calculating net of cash inflows and outflows in present value term using discounting of the cash flow by required rate of return.

Net Present Value of the machine is $5,561

All the calculation and workings are attached with this question please find it.

5 0

3 years ago