Answer:
Option (a) is correct.
Explanation:
The federal reserve is the central bank of United States. It is responsible for all the changes occured in a nation's monetary policy and it regulates all the banks operates in a nation.
Federal reserve uses various monetary policy tools to control the money supply in an economy. Some of the tools are as follows:
(i) Cash reserve ratio (CRR)
(ii) Statutory liquidity ratio
(iii) Open market operations(OMO)
(iv) Repo rate
(v) Reverse repo rate
(vi) Bank rate
Functions of Fed:
(i) Regulation of financial institutions
(ii) Banker's bank
(iii) A lender of last resort
(iv) Implement monetary policy
Answer:
Part 1:
Part 2:
Explanation:
Part 1: (the book value per share of the preferred and common stock under No preferred dividends are in arrears)
Book value per share of the preferred :
In our case Cumulative dividends=0
Book value per share of the common stock:In our case Cumulative dividends=0
Part 2:
Annual Preferred Dividend=4%*$25*10,000=$10,000
Three years of preferred dividends are in arrears= 3*Annual Preferred Dividend
Three years of preferred dividends are in arrears= 3*$10000=$30,000
Formula for the book value per share of the preferred is same as above,so we will direct calculate:
In our case Cumulative dividends=$30,000
Book value per share of the preferred :
Book value per share of the common stock:
Formula for the book value per share of the common stock is same as above,so we will direct calculate:
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Answer:
Increase the amount of the initial investment by $12,000 (C)
Explanation:
Option A- False. It is not a sunk cost but a relevant cost because it has a disposal value and there is market for the sale.
Option B-False. The NPV of the project will be reduced by $12,000 because it is a relevant cost and the disposal value will reduce the NPV of the project .
Option C- True. Because truck could have been sold for $12,000 if not use in the project, the disposable value will have to be added to the initial cost of the investment.