Answer:
$2.4 million
Explanation:
The total assets of the firm are funded by both debt and equity,hence, the total assets is the same as total equity plus total debt based on the accounting equation formula below:
total assets=equity+debt
tota assets=$4 million
equity=unknown
debt can be derived using the debt ratio as shown thus:
debt ratio=debt/total assets
debt ratio=40%
debt=unknown
total assets=$4 million
40%=debt/$ 4 million
debt=40%*$4 million
debt=$1.6 million
$4 million=equity+$1.6 million
equity=$4 million-$1.6 million
equity =$2.4 million
Answer:
expand
Explanation:
In "open market operations" to expand M1, the securities held by a commercial bank (or the public) are exchanged for "cash" from the Fed (the transfer of funds from the Fed to a bank.
The Fed buys securities from banks holding it, for money; so as to increase the supply of money in the economy.
In business, people often make choices. Opportunity Cost is the value of what must be foregone in order to undertake an activity.
<h3>
What is opportunity cost?</h3>
- The economists often refer to this type of cost as the amount or the value of the next highly rated alternative use of one's money or resource.
An example is when a person spend their time and money going to a shop, one cannot spend that time at cooking, and you even did not spend the money on other things.
Learn more about Opportunity Cost from
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