Answer: See explanation
Explanation:
Public companies are the companies which have their stocks traded on the public exchange market. Its ownership is organized through shares of stock.
Based on the information given, then the vice president and other executive managers will be considered insiders due to the fact they have information which are gotten internally.
Answer:
D
Explanation:
Firstly, before we answer this question, we need to know what a futures contract is.
A futures contract can be defined as an agreement specifying the delivery of a commodity or a security at an agreed future date and at a currently agreed price.
This means to set a future contract rolling, we need to have an agreed date if delivery and currently agreed price by both parties involved.
Now, to the question, the correct answer is D. He has the obligation to deliver the underlying financial instrument at the specified future date
Answer:
a. ABC Inc.
Explanation:
The degree of financial leverage is expressed by the following formula,
=
The ratio represents the relationship between net operating profits and profits after financial fixed costs.
Higher the degree of financial leverage, higher will be the financial risk.
In the given case, ABC Inc.'s degree of financial leverage is higher which suggests that ABC has employed more of debt in it's financial structure owing to which higher fixed cost obligations in the form of interest payments have been created.
Thus, ABC Inc. will have a greater financial risk.
Answer:
17.9%
Explanation:
The computation of the internal rate of return of the project is shown below;
Year 0 0
Year 1 -70,000 ($10,000 - $70,000)
Year 2 -15,000 ($30,000 - $45,000)
Year 3 115,000 ($125,000 - $10,000)
Let us assume r represent the IRR of the incremental project.
so,
-$70,000 ÷ (1+r) - $15,000 ÷ (1+r)^2 + $115,000 ÷ (1+r)^3 = 0
r = 17.9%
Answer:
a. The money multiplier is 5.
b. The Total money supply will increase by $250 million.
Explanation:
According to the given data we have the following:
Increase in amount of reserves by Fed = $100 million
Increase in money supply = $500 million
Therefore to Calculate the Money multiplier we have to use the following equation:
Increase in money supply = Increase in reserves×Money multiplier
So, Money multiplier = Increase in money supply/Increase in reserves
= $500 million/$100 million
= 5
a. The money multiplier is 5.
If there is anIncrease in amount of reserves by Fed = $50 million and the Money multiplier = 5
, therefore to Calculate increase in money supply we calculate the following:
Increase in money supply = Increase in amount of reserves by Fed * Money multiplier
= $50 million
= $250 million
b. The Total money supply will increase by $250 million.