3 years ago

Innovation and enterprise

Business

1 answer:

weeeeeb [17]3 years ago

3 0

Answer:

whats your question?

Explanation:

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Your broker suggests that the stock of DUH is a good purchase at $25. You do an analysis of the firm, determining that the recen

jarptica [38.1K]

Answer:

The correct answer is "$28.03".

Explanation:

The given values are:

Good purchase,

= $25

Dividend,

= $1.40

Annually earning,

= 5%

Beta coefficient,

= 1.3

Treasury bills,

= 1.4%

Now,

= $1.4+1.34\times 8-1.4$

= $1.34\times 8$

= $10.244$ (%)

hence,

The fair value will be:

= $1.4\times \frac{1.05}{.10244}-.05$

= $28.03$

Absolutely, the proposal including its brokerage must be adopted because as fair market value was almost $25.

5 0

3 years ago

If a commercial banking system has $200,000 in checkable deposits, actual reserves of $70,000, and a reserve ratio of 20 percent

Solnce55 [7]

Answer:

B. False

Explanation:

The banking system can expand the supply of money by a maximum of $1,000,000 ($200,000/0.2).

The maximum currency creation by the banking system is a function of the checkable deposits and the reserve ratio. The formula for this is called the money multiplier, and is given as the checkable deposits divided by the reserve ratio. With this multiplier factor, banks can increase the currency in circulation. This is why central banks use the reserve ratio to monitor the supply of money in their economies.

4 0

3 years ago

Simko Company issued $750,000, 8-year, 6 percent bonds on January 1, 2018. The bonds were issued for $710,000. Interest is payab

11Alexandr11 [23.1K]

Answer:

Bond issuance:

Dr cash $710,000

Dr discount on bonds payable $40,000

Cr bonds payable $750,000

The payment of interest on December 31, 2018:

Dr interest expense $50,000

Cr discount on bonds payable $5000

Cr cash $45,000

Explanation:

The bonds were issued at a discount to their face value, as a result, the discount on bonds payable is computed thus:

discount on bonds payable=$750,000-$710,000=$40,000

Bonds payable would be credited with $750,000 while cash and discount on bonds payable would be debited with $710,000 and $40,000 respectively

annual discount amortization=$40,000/8=$5000

annual coupon=$750,000*6%=$45000

6 0

3 years ago

In reviewing the firms whose stocks comprise the Dow Jones Industrial Average, we discover: a) There is an even mix between big

Svetach [21]

Answer:

C, is the correct answer.

Explanation:

7 0

3 years ago

Third-Party Woes. Trudy owed Sam $40 for a book she purchased from him. Trudy mowed Betty's yard for $40 and agreed with Betty t

Blizzard [7]

Answer:

Refer below.

Explanation:

Answer is intended both & Done.

6 0

3 years ago