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alexandr402 [8]

3 years ago

15

SHORT ANSWER Fill in the blanks: Fractional Reserve Banking requires banks to hold only _1_of the money their customers deposit.

That amount is the....

1 answer:

emmasim [6.3K]3 years ago

7 0

Answer:

i dont know

Explanation:

i dont know

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Joe sold gold coins for $1,000 that he bought a year ago for $1,000. he says, "at least i didn't lose any money on my financial

solniwko [45]

The economist's analysis in the scenario painted above incorporates the idea of OPPORTUNITY COST.
Opportunity cost refers to a value or a benefit which must be given up in order to enjoy or acquire another benefit. Because resources are scarce, one always has to make decision about how to use one's resources efficiently. In the scenario given above, Joe had the opportunity to put his money in a fixed deposit account or to use it to buy gold coins; he choose the latter given up the former. Thus, the former, which he gave up is his opportunity cost.<span />

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Lorico [155]

That is known as the "invisible hand"

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3 years ago

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How do Government price ceilings and price floors affect the economy? Select all that apply.

serg [7]

The following options are correct: A, B AND C.
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7 0

3 years ago

Adams and Collin Enterprises expect earnings and dividends to grow at a rate of 25% for the next 4 years, after the growth rate

ollegr [7]

Answer:

the intrinsic value of the stock is 42.97

If the stock is priced at 40 dollars it would be a good idea to purchase the share as will provide a better yield than the cost of capital of 9.6%

Explanation:

First, we solve for the cost of equity using the CAPM:

$Ke= r_f + \beta (r_m-r_f)$

risk free = 0.03

market rate = 0.09

premium market = (market rate - risk free) = 0.055

beta(non diversifiable risk) = 1.2

$Ke= 0.03 + 1.2 (0.055)$

Ke = 0.09600

<em>Now we solve for the intrinsic price using the gordon model</em>

<em>with multi-stage growth:</em>

First, we calcualte the future dividends

grow rate Dividends

0 1.25

1 0.25 1.5625

2 0.25 1.953125

3 0.25 2.44140625

4 0.25 3.051757813

4 0.03 3.143310547

Now in the last year, we calcualte using the gordon model or constant grow:

$\frac{3.143310547}{0.096-0.03} = Intrinsic \: Value$

32.7128182

Now we calculate and add together the present value of each of this future cash flow to determnate the intrinsic value ofthe share:

$\frac{Principal}{(1 + rate)^{time} } = PV$

Present Value

1 1.5625 / (1+0.096)^1 = 1.425638686

2 1.953125 / (1+0.096)^2 = 1.625956531

and so on, giving the following values:

3 1.854421226

4 2.114987712

present value of the future dividends at 3% 22.67126448

<u>Finally we add them and get:</u>

42.97160726

8 0

4 years ago

Magic Company adds materials at the beginning of the process in Department A. The following information on physical units for De

Dvinal [7]

Answer:

Equivalent units

a) Weighted average = 523,200 units

b) FIFO = 480,000 units

Explanation:

<em>FIFO Method.</em>

<em>Fully worked units</em><em>: These represent units of inventory that were started in a current period and completed that same period. The fully worked units are calculated in order to separate the opening inventory from the the newly introduced when accounting for completed units under the FIFO.</em>

For magic company , fully worked units is

= 480,000 - 72,000 = 408,000 units

Equivalent units using Weighted Average

<em>Here, there are no distinction between opening inventory and the newly introduced</em>.

<em> Equivalent Units</em>

Completed unit (100%× 480,000) = 480,000

Closing inventory (60% × 72,000) = <u> 43,200</u>

Total equivalent units <u>523,200</u>

Equivalent Units using FIFO

Item <em>Equivalent Units</em>

Opening inventory (40% × 72,000) = 28,800

Fully worked (100%× 408,00) = 408,000

Closing inventory (60% × 72,000) = <u> 43,200</u>

Total equivalent units <u>480,000 </u>

<u />

Equivalent units

a) Weighted average = 523,200 units

b) FIFO = 480,000 units

8 0

3 years ago