Answer:
$12,650,000.
Explanation:
Reserves is the total amount of a bank's deposit that is not given out as loans
Reserves = Deposits - outstanding loans
Required reserves is the percentage of deposits required of banks to keep as reserves by the central bank
Required reserves = reserve requirement x deposits
0.09 x 415 million = 37.35 million
Excess reserves is the difference between reserves and required reserves
50 million - 37.35 million = 12.65 million
Answer:
The expected price of the stock is $122.03
Explanation:
To calculate the expected price of the stock at the end of the year or at Year 1, we first need to determine the required rate of return on the stock. We will use the CAPM equation to calculate the required rate of return.
The required rate of return is calculated as,
r = rRF + Beta * (rM - rRF)
Where,
- rRF is the risk free rate
- rM is the return on market
r = 0.05 + 1 * (0.14 - 0.05)
r = 0.14
We already have the price of the stock today, the D1 and the required rate of return. Using the constant dividend growth model of DDM, we calculate the growth rate in dividends to be,
P0 = D1 / (r - g)
115 = 9 / (0.14 - g)
115 * (0.14 - g) = 9
16.1 - 115g = 9
16.1 - 9 = 115g
7.1 / 115 = g
g = 0.0617 or 6.17%
Using the same formula and replacing D1 with D2, we can calculate the price of the stock at the end of the year or at start of Year 1.
P1 = 9 * (1+0.0617) / (0.14 - 0.0617)
P1 = $122.03
Answer:
$2.25
Explanation:
sale volume of company = 30,000 unit
total fixed cost are = $30,000
total variable cost $45,000 for 30,000 unit
1 unit = 45000/30000 = $ 1 . 5
for the sale of 40,000 unit
the total expected cost
= Fixed cost + Variable cost
= $30,000 + 40,000×$1.50
= $30,000+$60,000
= $90,000
Cost per unit:
= $90,000/40,000
= $2.25
Answer:
a. AD curve will shift to the right
b. AD curve will shift to the left
c. Movement along the AD curve.
Explanation:
a. When firms become more optimistic and increase their spending on machineries,this brings about changes in investment and it will cause a shift to the right in the aggregate demand curve.
b. When The federal government increases taxes in an attempt to reduce a budget deficit. This will cause a change in consumption as people will have less money to spend since disposable income has been reduced, and it will cause the aggregate demand curve to shift inwards to the left.
c. A 4 percent in US inflation will bring about a change in price level and there will be a movement along the aggregate demand curve.
Answer:
this is a cost minimization problem, but it is missing some numbers, so I looked for similar questions (see attached PDF):
minimization equation = 20x₁ + 22x₂ + 18x₃ (costs per ton)
where:
x₁ = mine I
x₂ = mine II
x₃ = mine III
the constraints are:
4x₁ + 6x₂ + x₃ ≥ 54 (high grade ore)
4x₁ + 4x₂ + 6x₃ ≥ 65 (low grade ore)
x₁, x₂, x₃ ≤ 7 (only 7 days per week)
using solver, the optimal solution is
2x₁, 7x₂, and 5x₃
a. The number of days Mine I should operate = <u>2 days
</u>
b. The number of days Mine Il should operate = <u>7 days
</u>
c. The number of days Mine III should operate = <u>5 days
</u>
d. The total cost of the operation for next week = <u>$284,000</u>
