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12345 [234]
3 years ago
5

Suppose that Second Republic Bank currently has $100,000 in demand deposits and $70,000 in outstanding loans. The Federal Reserv

e has set the reserve requirement at 20%. Please calculate Second Republic Bank's:_________.(a) reserves(b) required reserves(c) excess reserves
Business
1 answer:
Dafna11 [192]3 years ago
4 0

Answer:

$30,000

$20,000

$10,000

Explanation:

Reserves is the total amount of a bank's deposit that is not given out as loans

Reserves = Deposits - outstanding loans

$100,000 - $70,000 = $30,000

Required reserves is the percentage of deposits required of banks to keep as reserves by the central bank

Required reserves = reserve requirement x deposits

0.2 x $100,000 = $20,000

Excess reserves is the difference between reserves and required reserves

$30,000 - $20,000 = $10,000

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All companies operate in a broad ______-environment that is made up of six components, including political factors and technolog
Helen [10]

Answer:

The word that is underlined, that's the answer;<u> </u><u>Macro</u>

Explanation:

hope this helps.

4 0
1 year ago
Mobray Corp. is experiencing rapid growth. Dividends are expected to grow at 32 percent per year during the next three years, 22
KatRina [158]

Answer:

$1.3794

Explanation:

The computation of the projected dividend for the coming year is shown below:

Last year dividend paid = Do

Expected Dividend in Year 1 (D1) = Do ( 1+g) = Do × 1.32

Dividend in Year 2 (D2) = Do ( 1+g)^2  = Do × 1.32^2

Dividend in Year 3 (D3) =  Do ( 1+g)^3 = Do × 1.32^3

Dividend in year 4 , (D4) = D3 ×  (1+g) = Do × 1.32^3 × 1.22

Now the price at year 4 is

P4 = D4 × (1+g) ÷ ( R-g )

= Do × 1.32^3 × 1.22 × (1 + 0.07 ) ÷ ( 0.10 - 0.07 )

= Do × 100.08

Use Gordon Growth Model

The Current Price of Stock is

= D1 ÷ ( 1+ R)^1 +D2 ÷ ( 1+ R)^2 + D3 ÷ ( 1+ R)^3 + D4 ÷ ( 1+ R)^4 + P4 ÷ ( 1+ R)^4

$78  = Do ( 1.32 ÷ 1.1 + 1.32^2 ÷ 1.1 ^2 + 1.32^3 ÷ 1.1^3 +1.32^3 × 1.22 ÷ 1.1^4 + 100 .08 ÷ 1.1^4)  

$78 = Do ( 1.2 +1.44 + 1.728 + 1.9165 + 68.36 )

Do = $1.045

Now

Projected Dividend for Year 1 is

= Do × 1.32

= $1.045 × 1.32

= $1.3794

8 0
3 years ago
Mr. Hudson notes that if he produces 10 pairs of shoes per day, his average fixed cost (AFC) is $14 and his marginal cost is $8;
zalisa [80]

Answer:

Average fixed cost for 20 units = $7

Explanation:

<em>The fixed costs are cost are expenditures that do not vary with the activity level within a given range. Unlike variable costs, fixed costs are tend to be unaffected in the short run by amount of production work done or service rendered.</em>

The units produced will not have an impact on the total fixed costs but rather on the average fixed cost. The average fixed cost would become lower as the units produced increases.

Average fixed cost = Total fixed cost / Total units produced.

Hence , Total fixed cost = Average fixed cost × units produced

DATA

AFC - $14

Units - 10 units

Total fixed cost = 10 × 14 = $140

Average fixed cost for 20 units =Total fixed cost / Number of units

140/20 = $7

Average fixed cost for 20 units = $7

3 0
3 years ago
BusCorp wants to introduce a new procedure to improve how customer requests are handled. This change will require employees to b
serg [7]

Answer:

E)Employee involvement

Explanation:

Employee involvement can be regarded as taking part of employees in decision-making process that are crucial to the organization, so that the goals of the organization are met. When employees there is involvement of employees in making decisions, there will be some professional as well as personal stake gained by the employee in the organization as well as the organization overall success. As a result of this there would be increased productivity in part of employees because they will take part actively in various aspects that will bring about success of the firm.

8 0
3 years ago
Allegience Insurance Company’s management is considering an advertising program that would require an initial expenditure of $16
nalin [4]

Answer:

a. Pay back period is 4 years and 18 days

b. Net present value is - $5,909. Since the NPV is negative, the project should be rejected.

Explanation:

Note: See the attached for the calculation tables of a and b.

a. Pay back period = 4 years and [($2,565/$51,244)*365 days] = 4 years and 18 days approximately.

Download xlsx
3 0
3 years ago
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