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skelet666 [1.2K]
3 years ago
15

When Wells Fargo employees fraudulently opened customer accounts in order to meet extremely high sales quotas, rehabilitating th

is bank's shattered reputation was expected to be time-consuming and costly because _________a. its employees' actions could result in increased corporate taxes on the bank's profits. b. its employees' actions could lead to unnerved creditors and increased risk of default on loans due to potential business fallout c. its employees' actions could result in higher stock prices and higher returns on invested capital. d. its employees' actions could result in the increased costs of servicing the bank's customers. e. its employees' actions could result in poaching talented employees from rival banks.
Business
1 answer:
Svetradugi [14.3K]3 years ago
3 0

Answer:

The correct answer is letter "B":  its employees' actions could lead to unnerved creditors and increased risk of default on loans due to potential business fallout.

Explanation:

The Wells Fargo scandal refers to the fraudulent activity found on the American bank during 2011 and 2016 as a result of opening fake accounts. It is estimated that the bank revenues were around $575 million from those types of accounts. According to the Consumer Financial Protection Bureau (CFPB), Wells Fargo charged $2 million only in charges for 85,000 deposit accounts that were open without authorization.

Under such a scenario, <em>investors and account holders were uncertain on what to do with their positions in the bank since it could easily face a fallout. This scenario represents a risk for the financial institution because customers were likely to lose interest in the bank's products like loans. </em>

<em>An online survey conducted in 2018, reflected that Wells Fargo could lose $93 million in deposits over 2019.</em>

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A sporting goods manufacturer budgets production of 45,000 pairs of ski boots in the first quarter and 30,000 pairs in the secon
Alexandra [31]

Answer:

The budgeted materials need in kg. in the first quarter is 90,000 kg

Explanation:

For computing the budgeted material needed in the first quarter, first we have to calculate the consumption of first and second quarters separately, so that we can arrive to a solution.

The consumption of first quarter = Budgeted production × required kg

                                                   = 45,000 × 2

                                                   = 90,000 kg

The consumption of second quarter = Budgeted production × required kg

                                                   = 30,000 × 2

                                                   = 60,000 kg

The ending raw material inventory = 30% of second quarter

                                                      = 30% × 60,000

                                                      = 18,000 kg

Now put the formula to find out the purchase amount. The formula is shown below:

Raw material consumption = Opening raw material inventory + purchase of raw material - ending raw material inventory

where,

beginning inventory = 18,000 kg

90,000 = 18,000 + purchase - 18,000

So, the purchase is 90,000 kg

The question has asked the amount in kg so cost per kg is irrelevant.

Hence, the budgeted materials need in kg. in the first quarter is 90,000 kg

3 0
3 years ago
During 20X1, the Balboa Software Company incurred development costs of $2,000,000 related to a new software project. Of this amo
sergey [27]

Answer:

$400,000

Explanation:

Data provided in the question:  

Development cost incurred = $2,000,000  

Amount incurred after the technological feasibility was achieved = $400,000

Now,  

The Software development costs that would be capitalized in 20X1

= Cost incurred after achievement of technological feasibility    

= $400,000  

3 0
3 years ago
A $ 1 comma 000 bond with a coupon rate of 6.2​% paid semiannually has two years to maturity and a yield to maturity of 6​%. If
pav-90 [236]

Answer:

As a result of a fall in interest and YTM, the bond price will increase by $15.04

Explanation:

To calculate the change in price due to fall in interest rate, we must first calculate the price of the bond before and after the fall of interest rates.

To calculate the price of the bond, we need to first calculate the coupon payment per period. We assume that the interest rate provided is stated in annual terms. As the bond is a semi annual bond, the coupon payment, number of periods and semi annual YTM will be,

Coupon Payment (C) = 1000 * 0.062 * 0.5 = $31

Total periods (n)= 2 * 2 = 4

r or YTM = 6% * 1/2 = 3% or 0.03

The formula to calculate the price of the bonds today is attached.

<u />

<u>Before Interest rates Fell</u>

Bond Price = 31 * [( 1 - (1+0.03)^-4) / 0.03]  +  1000 / (1+0.03)^4

Bond Price = $1003.717098 rounded off to $1003.72

<u />

<u />

<u>After Interest Rates Fell</u>

New YTM = 6% - 0.8%   =  5.2% or 0.052

Semi Annual YTM = 0.052 * 0.5  = 0.026

Bond Price = 31 * [( 1 - (1+0.026)^-4) / 0.026]  +  1000 / (1+0.026)^4

Bond Price = $1018.764647 rounded off to $1018.76

Change in Bond Price = 1018.76 - 1003.72   = $15.04

As a result of a fall in interest and YTM, the bond price increased by $15.04

7 0
3 years ago
Andy views beer and pizza as complements to one another. If the price of pizza decreases, economists would expect:Andy's demand
notsponge [240]

Answer: Andy's demand for beer to increase

Explanation:

Andy's views beer and pizza as complement to each other. Hence when the price of pizza decreases Andy's demand for beer would increase as he would order more beer than pizza so as to complement both offers.

7 0
3 years ago
Jack Thomas, who live in Minnesota, and Sandy Silver, who live in Oklahoma, each purchased $92,000 worth of securities at the lo
Alenkasestr [34]

Answer:

Follows are the responses to the given points:

Explanation:

In point a:

Yeah, throughout the state court they will ever sue against fraud. As base with the that State is appropriate so because the main place of work is specific budget inventory representatives Inc.

In point b:

Thomas couldn't sue for cheating at the federal court successfully, because equality in nationality would be the only conceivable way. Because as a federal problem also isn't involved, Thomas and both are comprehensive residents of Michigan weren’t diverse for this situation. The business is a resident of all its corporate headquarters and the State of formation.

In point c:

Throughout this situation, silver can claim nationality plurality, as Oklahoma's comprehensive would not be a citizen. It simple company does company in such a state doesn't render that business a citizen. However, if silver has been damaged in terms of $75,000, this failure combined with citizenship diversity would allow it to sue extensively in a federal court. This event does not tell everyone how slowly he lost, however, the facts weren't enough to make a correct judgment.

3 0
3 years ago
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