Answer:
The maximum change in the money supply is 250 million
Explanation:
In this question, we are asked to calculate the maximum change in money supply given that the required reserve ratio is 20%.
Firstly, we need to calculate the multiplier in this case.
The multiplier in this case can be calculated by dividing 1 by the required reserve ratio
Mathematically, multiplier = 1/required reserve ratio = 1/0.2 = 5(kindly note that 20/100 = 0.2)
Now, we move on to calculate the maximum change in the money supply.
This would be equal to multiplier * value of open market sale = 5 * 50 million = 250 million
Therefore, the maximum change in the money supply is 250 million
Answer and Explanation:
As per the data given in the question,
1)
Fair value per share = $20.4
Number of Share = 2 million
Fair value of award = Fair value per share ×Number of Share
= $20.4 × 2 million
= $40.8 million
2) No Entry
3)
Compensation expense($40.8 million÷4 years) $10.2 million
To Paid in capital - restricted stock($20.4-$10.2) $10.2 million
(Being the compensation expense is recorded)
4)
Fair value per share = $20.4
Share granted = 2 million
(100%-10%) forfeiture rate = 90%
fair value of award = $20.4×2×90%
= $36.72 million
Answer: 12.47%
Explanation:
First convert the APR to the relevant periodic rate.
The compounding is done daily so the periodic rate is:
= 11.75%/365
Effective Annual rate is calculated by the formula:
= ( 1 + periodic rate) ^ compounding period per year - 1
= ( 1 + 11.75%/365)³⁶⁵ - 1
= 12.47%
Answer:
$72
Explanation:
To calculate the weighted contribution margin we can use the following formula:
[(sales price A - variable cost A) x proportional sales A] + [(sales price B - variable cost B) x proportional sales B]
= [($200 - $120) x 80%] + [($100 - $60) x 20%] = $64 + $8 = $72
