Answer:
a. Savers who lend money are willing to accept a lower minimum interest rate than potential savers who do not lend money.
b. Investment projects that are financed by savers have larger rates of return than projects that do not receive financing.
Explanation:
Loanable funds refer to the aggregate amount of money that all sectors, entities and individuals within an economy have decided to keep as an investment, instead of spending on personal consumption, by saving and giving them out as loans to borrowers.
The market for loanable funds is in equilibrium when the supply of loanable funds by the saver is equal to demand for loanable funds by the borrowers at a given interest rate.
When the market for loanable funds is in equilibrium, efficiency is maximized because projects that have higher rates of return are given priority to be funded first before the projects with lower rates of return are funded. The reason is that savers that have lowest costs of lending provides funds for the projects that have highest return rates in equilibrium. However, potential saver who do not lend money will prefer a higher interest rates.
Therefore, the correct options related to the two aspects of efficiency that the equilibrium of market for loanable funds exhibits are as follows:
a. Savers who lend money are willing to accept a lower minimum interest rate than potential savers who do not lend money.
b. Investment projects that are financed by savers have larger rates of return than projects that do not receive financing.
<u>Calculation of ending retained earnings balance after closing:</u>
The balance in ending retained earnings after closing can be calculated as follows:
Balance in retained earnings account before closing $297,000
Add: Revenues $185,000
Less: Expenses $103,700
Less: Dividends $18,000
Ending retained earnings balance after closing = $360,300
Hence, The balance in ending retained earnings after closing is <u>$360,300</u>
Answer:
The answer is: Must do priority
Explanation:
Must do priorities are the activities you or your organization must achieve in order to be successful. Must do priorities should be your highest priorities.
Veronica needs to get the bank loan so that her company can start their expansion projects, and she needs to do it fast.
Answer:
119.4% for 2017 and 100.0% for 2016.
Explanation:
2017 2016
Net sales $276,200 $231,400
Cost of goods sold $151,900 $129,590
Operating expenses $55,240 $53,240
Net earnings $27,820 $19,820
since we are using 2016 as a base year, the $231,400 in net sales represent 100%, so the trend percentage for 2017 = net sales 2017 / net sales 2016 $276,200 / $231,400 = 1.1936 = 119.4% or a 19.4% increase.
The base year's amount will always be 100% or 1, and the trend percentages will change relative to that year.
A commitment whereby the underwriter agrees to purchase any portion of an issue offered to existing shareholders under a rights offering that is left unsubscribed is known as a stand-by commitment.
Commitment means the consent of the backstop parties under the Backstop Rights Purchase Agreement, and purchases of all rights offering shares that exceed the Sopris Senior Note Commitment that the rights offering participants do not purchase in accordance with the rights offering.
Commitment: With firm commitment underwriting, the underwriter guarantees that the issuer will purchase all securities for sale, regardless of whether they can be sold to the investor. This is the most desirable arrangement as it immediately guarantees all the money of the issuer.
Commitment usually refers to the insurer's agreement to assume all inventory risk. A firm commitment also means agreeing to buy and sell all IPO securities directly from the issuer. Other uses of commitments relate to loans and derivatives.
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