Answer:
The correct answer is False.
Explanation:
The amortization operation consists of regularly distributing the repayment of the principal (C0), together with the interest accrued throughout the life of the loan. The periodic payments made by the borrower are therefore intended to reimburse, extinguish or amortize the initial capital. This justifies the name of the depreciation transaction and the depreciation terms that are usually assigned to these payments.
It would be an informative resource
Answer:
C.
Explanation:
Do teams and individuals follow instructions well?
All the projects in an organization are based in team work, and need to be thinking as a team that reacts to a external environment. So, this exclude answers A, B and D.
Answer:
a) Market Value = $100 million × $20 = $2,000 million = $2 billion
Market value of equity would remain same = $2 billion
b) Market value would remain same after recap. Only market capitalization would reduce to half.
Market value of equity = 1 billion
c) Buying back shares increases the stock price which demonstrates the faith of the company in its work. But creditors have capital gains.
d) After recap and cash flow firm total value has increased to $2 billion + $100 Million = $2.1 billion and market value of equity has increased from $20 to $22 . ($1000 + $100)/50 = $22.
e) Equity shareholders have gained due to increase in there share value
Explanation:
Answer:
20; $1 billion
Explanation:
Given that,
New funds = $20 billion
Required reserve ratio = 5%
Money multiplier:
= 1/Required reserve ratio
= 1/0.05
= 20
Initial money increase by:
= Funds wants to be in the money supply × Required reserve ratio
= $20 billion × 5%
= $1 billion
Therefore, the Fed should initially increase $1 billion in the money supply.