Answer:
No, they dont have to hold the 100%.
Explanation:
Because banks use the money deposited to make loans to other clients. By general rule the Commercial Banks are required to keep only the 10% of each deposit made in an account.
Answer:
When determining the appropriate weights used in calculating WACC, there is need to divide the market value of each stock by market value of the company.
Explanation:
Market value of the company is the aggregate of market value of equity, market value of preferred stock and market value of debt. We will divide the market value of each stock by market value of the company in order to obtain the respective weights.
Answer:
To avoid possible agency problems, <em>profit sharing</em> should be included in your offer
Explanation:
<em>Profit sharing</em> has to be included to ensure trust and to also gain the new general manager's trust
Answer:
Unitary Contribution margin= $0.6
Explanation:
Giving the following information:
LMN Company produces a product that sells for $1. The company has production costs of $600,000, half of which are fixed costs. Assuming the production and sales of 750,000 units.
Variable cost= 600,000/2= $300,000
Unitary variable cost= 300,000/750,000= $0.4
Unitary Contribution margin= 1 - 0.4= $0.6
Total contribution margin= $450,000