Leroy's personal information is shown below:

Reserves $27,000 Checkable Deposits $110,000 Loans 50,000 Stock Shares 200,000 Securities 33,000 Property 200,000 Refer to the a

mafiozo [28]

Answer:

Bank can safely expand its loan until it has zero excess reserves i.e. up to a maximum of $5000.

4 0

3 years ago

Bendel Incorporated has an operating leverage of 7.3. If the company's sales volume increases by 3%, its net operating income sh

Svet_ta [14]

Answer:

21.9%

Explanation:

Given that

Operating leverage = 7.3

Increase in sales = 3%

According to the given situation, the computation of net operating income is shown below:-

Increase in operating income = Operating leverage × Increase in sales

= 7.3 × 3 %

= 21.9%

Therefore for computing the increase in operating income we simply applied the above formula.

6 0

3 years ago

project x has an initial cost of $20,000 and a cash inflow of $25,000 in year 3. project y costs $40,700 and has cash flows of $

Helen [10]

Project X has a $20,000 start-up cost and a $25,000 cash inflow in year 3. Project Y has a $40,700 cost and generates cash flows of $12,000, $25,000, and $10,000 over the course of its first three years. The projects are mutually exclusive, and the discount rate is 6%. You should approve the project in the end based on the irrs and npv of each individual project as well as your own assessment of those factors. X;Y:Y.

Start-up costs are the costs a business spent or incurred to establish an active trade or business, or to research establishing or acquiring an active trade or business. Start-up costs are sums paid or expended in connection with a current profitable activity that is intended to generate money prior to the activity becoming a fully operational trade or business. Equipment, incorporation fees, insurance, wages, and taxes are just a few of the startup costs. Although startup costs will differ depending on your business's industry and type, an expense for one firm might not be applicable to another. It helps you effectively launch your firm and maintain profitability after your doors are open to understand your expenses and how you will manage them.

Learn more about startup costs here

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3 0

1 year ago

Company A has a beta of 0.70, while Company B's beta is 1.45. The required return on the stock market is 11.00%, and the risk-fr

stira [4]

Answer:

company B's cost of equity is 14.0375% - 8.975% = 5.0625% higher than company A's cost of equity

Explanation:

cost of equity = risk free rate + (beta x market premium)

risk free rate = 4.25%

market premium = market return - risk free rate = 11% - 4.25% = 6.75%

Company A's cost of equity = 4.25% + (0.7 x 6.75%) = 8.975%

Company B's cost of equity = 4.25% x (1.45 x 6.75%) = 14.0375%

this means that company B's cost of equity is 14.0375% - 8.975% = 5.0625% higher than company A's cost of equity.

8 0

3 years ago

Kyle, a single taxpayer, worked as a freelance software engineer for the first three months of 2021. During that time, he earned

laila [671]

The total amount of FICA Taxes (self-employment and employment related) that Kyle owes for 2021 is $17,181.

Data and Calculations:

Kyle = single taxpayer

Self-employment income for three months = $44,000

Employment income for nine months = $178,000

Total income for 2021 = $222,000

FICA taxes:

Social Security tax = $13,764 ($222,000 x 6.2%)

Medicare tax = $3,219 ($222,000 x 1.45%)

Additional Medicare tax = $198 ($22,000 x 0.9%) ($222,000 - $200,000)

Total FICA taxes = $17,181 ($13,764 + $3,219 + $198)

Thus, Kyle's total FICA taxes for 2021 is $17,181.

Learn more about calculating FICA taxes at brainly.com/question/21750517

4 0

3 years ago