Answer:
Earnings for the year = Addition to retained earnings + Dividend paid = $643,000 + $40,000 = $683,000
a. Earnings per share = Earnings / No of shares = $683,000 / 750,000 = 0.91
Dividend per share = Dividend / No of shares = $40,000 / 750,000 = 0.05
Book value per share = Ending equity / No of shares = $7,380,000 / 750,000 = $9.84
b. Market price per share is 30.8. Market to book ratio = $30.80 / $9,84 = $3.13
c. Price earning ratio = $30.80/$0.91 = $33.82
Total sales = $10,680,000, Sales per share = 14.24
Price sales ratio = Market price / Sales = $30.80 / $14.24 = $2.16
Answer:
loanable amount after Fed operation = $950 M
Securities after fed operation = $50 M
attached below is the T-account table
Explanation:
Given data:
For assets : securities = $100 M , Loans = $800 M
For Liabilities : Constant demand deposit = $1000 M
difference between the assets and liability = $100 M and this makes the Banking system unbalanced hence the Banking system needs the intervention of the Fed. and the reduction in the required reserve ratio from 10% to 5% is the right action
How with the reserve ratio reduced to: 0.05
hence required Minimum required securities after operation = 0.05 * 1000 M = 50 M
Note : Total demand deposits = securities + loanable amount
therefore loanable amount after Fed operation = $1000 M - $50 M = $950
Attached below is the T-table
When both tables are compared it can be seen that there is a significant increase in the loanable amount after the Fed's operations and increase in Loanable amount transcends to increase in Monetary base
Explanation:
A major problem in investing in the countries of South America are the problems arising from corruption, political instability and bureaucratization.
There are also many positive points that make large companies operate in such countries, such as Brazil, for example, which is a large country with enormous potential for consumption and also local and government incentives for setting international companies in the country.
However, it is essential that companies operate in these countries having knowledge of the real local situation in terms of the main problems occurring in the country, such as corruption, which can lead to significant problems for the company's business.
It is important, therefore, that there is an accurate internal control over the businesses and the corruption-related indexes and an active and regular monitoring of data essential to the business.
It is also important to have policies and an internal culture aimed at maintaining ethical values, so that the company is supported by positive and ethical values that will lead to a good positioning in the market.
