• Initially default risk increases, yield increases, price of AIG decreases
• After government intervention, default decreases, yield decreases, price of AIG increases
raise money to finance their companies
find investors for their businesses
offer expert financial advice
Explanation:
<u>Investment banks are essentially avenues for investors to find good investment avenues in the work of the entrepreneurs </u>and for entrepreneurs to find viable investors who will take their company forward by financing it.
<u>The financing of this sort is often advised by the bank for the mutual profit of the two parties.</u>
As such an avenue they are in a position to advice the entrepreneur on which opportunity to take and which to pass on.
Answer:
A) Textual output
Explanation:
Text output is the common type of the graphic output that could be found within the client area. it is applied by the applications in various ways
It can be worked for two things i.e. forming the text and in actual draw the text
In the given case the text based application like electronic mail, information service would be used so here the textual output should be choose for the same
Answer:
Decrease in M1; No effect on M2
Explanation:
Monetary aggregates is as follows:
M1 consists of:
= Currency with the public + Checking/Demand deposits + Other deposits with the RBI
M2 consists of:
= M1 + Post office savings account deposits
Effect on M1:
If a person transfer money from checking account to savings account, so there is a fall in M1 because the amount in checking account is reduced.
Effect on M2:
If a person transfer money from checking account to savings account, then there is a fall in checking account and at the same time there is a rise in the savings account. M1 is a component of M2.
Therefore, there will be no effect on M2.
Answer:
36%
Explanation:
For the computation of the company's return on equity first we need to follow some steps which is shown below:-
Step 1
Earnings before tax = EBIT - Interest
= $452,000 - $152,000
= $300,000
Step 2
Earnings after interest and taxes = Earnings before tax - Tax
= $300,000 - ($300,000 × 40%)
= $300,000 - $120,000
= $180,000
Step 3
Asset turnover ratio = Total revenue ÷ Total assets
3.6 = $4,000,000 ÷ Total assets
Total assets = $1,111,111.11
Step 4
Equity ratio = 1 - Debt ratio
= 1 - 0.55
= 0.45
Step 5
Total Equity = Equity ratio × Total assets
= 0.45 × $1,111,111.11
= $500,000
and finally
Return on Equity = Net income ÷ Equity
= $180,000 ÷ $500,000
= 0.36
or
= 36%
