Answer:
Zork's cost of equity capital is 12.85%
Explanation:
Cost of equity=Rf+Beta* Mrp
Rf is the risk-free rate of 4.6% which is rate of return on government security
Beta of the stock is 1.13
Mrp is the market risk premium which is the incentive given over and above the risk free rate in order to compensate investors for risk taken by investing in stock i.e 7.3%
cost of equity=4.6%+(1.13*7.3%)=12.85%
Answer:
Balance Sheet B because the excess reserves are adequate to cover the deposit outflow without the bank needing to alter its balance sheet.
Explanation:
Balance Sheet B because the excess reserves are adequate to cover the deposit outflow without the bank needing to alter its balance sheet and $50 million deposit outflow means that reserves reduced by $50 million to $25 million. Since required reserves are $45 million (10% of the $450 million of deposits), which means the bank needs to acquire $20 million of reserves and the reserve can be obtain by either calling in or selling off $20 million of loans, borrowing $20 million in discount loans from the Fed, borrowing $20 million from other banks or corporations, selling $20 million of securities, or the combination of all.
Answer:
$792,960
Explanation:
Data provided
Number of pods = 23,600
Direct labor hours = 3
Direct Labor Rate per hour = $11.20
The computation of Budgeted direct labor costs is shown below:-
Budgeted Direct labor Cost = Number of pods × Direct Labor Hours required per pod × Direct Labor Rate per hour
Budgeted Direct labor Cost = 23,600 × 3 × $11.20
= $792,960
