The duration gap is calculated by subtracting the duration of the liabilities from the duration of the activity of the financial entities. Thus, in this case, the net worth of 1.8 percent of its assets.
<h3>What do you mean by Duration Gap?</h3>
Duration Gap refers to the term used by funds, banks, pensions, or many financial institutions to estimate the risk because of changed interest rates.
Also, if we have a negative duration gap means that the market value of equity will increase when interest rates rise.
Thus, in this case, If interest rates increase from 9 percent to 10 percent, a bank with a duration gap of 2 years would experience a decrease in its net worth of 1.8 percent of its assets.
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Answer:
B. large amount of natural resources
Explanation:
Comparative advantage is a country's ability to produce a product or service for a lower opportunity cost than rival countries. Opportunity costs are the benefits given up in the extraction process. If a country has a large amount of natural resources, it will use fewer resources in the extraction process than other countries. The trade-off costs will be so little compared to the benefits.
Other countries will find it cheaper to import from a country with large natural resources. For example, oil-rich nations have a comparative advantage in the extraction and processing of oil and oil by-products.
Answer:
Cost of land = $519,000
Explanation:
<em>According to International Accounting Standards (IAS) 16, property plants and equipments, the cost of land includes all of the cost necessary to bring and make it ready for the intended use. </em>
<em>These costs include purchase cost, fees and commission associated with the purchase transaction. </em>
<em>Further more, included in the historical cost are the net demolition cost of old structure to prepare the land for use. Net cost here means cost of demolition less any incidental proceed from the old structure.</em>
Note that all the costs incurred by FVI as reported all fall into the above definition of cost of land.
Therefore the cost of the land would be
=460,000 + 26,000 + 1,600+ 5,400 + 26,000
= $519,000
<span>william's company was using the principles of </span><span>scientific management
</span><span>scientific management is a management practice which rely on scientific finding in order to improve the productivity in the company.
</span>In scientific management mindset, each company need to implement a specific method completely to the letter without any form of flexibility.
This form of management started to fade away by the end of 20th century.
<u>Answer:</u>
<em>a. Make shareholders as wealthy as possible by investing in real assets.</em>
<u>Explanation:</u>
We can imagine the <em>financial manager </em>doing several things on behalf of the firm’s stockholders. For example, the manager might do is make the shareholders as wealthy as possible by<em> investing in real assets</em>.
The shareholders has <em>paper financial leverage</em> and only the value of decomposition of the firm increases, it means that the shareholders have the ability to do the <em>financial leverage.</em>
And the hell used to decompose in the market which it is good to I must be have to the ability to do it in a simple way to think in <em>a simple language.</em>
