Banks can lend up to 90% of money on deposit in the bank to other clients.
The other 10% that the bank does not lend is called the "fractional reserve".
Now, by lending this 90% to a client, the money supply may increase based on the procedure below:
First client deposits 100$ in the bank
Bank lends 90$ to second client who deposits these 90$ in another bank
This other bank lends 81$ from the deposited 90$ to a third client who deposits them in a new bank.
The new bank lends 72.9$ out of these 81$ to a fourth clients who deposits them in a different bank......and so the cycle continues increasing the money supply
Answer:
The current values for BEp and margin of safety before the proposed changes are:
BEP units: 7,800
in dollars: $ 358,800
Margin of safety:
2,200 units or $ 101,200 of sales
Explanation:
The break even pont is the level of salesthat makes the operating income equal to zero. the margin of safety is the amount above this level at curernt sales.
Contribution per unit: $23
Fixed Cost $179,400
179,400 / 23 = 7,800
In dollars: 7,800 units x $46 each = $ 358,800
Margin of safety:
10,000 - 7,800 = 2,200
in dollars 460,000 - 358,800 = 101,200
Answer:
a. $39.40 per share
b. 8.63%
Explanation:
a. The computation of the NAV of the fund is shown below:
= (Assets - liabilities) ÷ (Number of outstanding shares)
= ($200 million - $3 million) ÷ (5 million shares)
= ($197 million) ÷ (5 million shares)
= $39.40 per share
b. The computation of the premium or discount as a percent of NAV is shown below:
Since the selling price is $36 but its NAV is $39.40
So, the discount would be equal to
= $39.40 - $36
= $3.40
The discount percentage equals to
= $3.40 ÷ $39.40
= 8.63%
Answer:
A. real property
Explanation:
These are known as real property. Like mentioned in the question, this is land and all of the property attached to it, this includes any and all subsets of land that have been improved through any form of legal human actions. There are many things that are included in a piece of land that can be considered real property such as buildings, ponds, canals, roads, and machinery, among other things.
Answer:
The correct answer to the following question is option C) $1800.
Explanation:
Given information -
Product sales - 1000 units
Sales price - $10
Variable manufacturing cost - $5.50 per unit
Fixed manufacturing overhead - $1200
Variable selling and administrative costs - $.50 per unit
Fixed selling and administrative cost - $1000
Units produced - 1200 units
Manufacturing contribution per unit = Sales price per unit - Variable
manufacturing cost per unit
= $10 -$5.50
= $4.50
Manufacturing contribution margin -
Number of units sold x manufacturing contribution per unit
= 1000 x $4.50
= $4500
While the contribution margin per unit -
$4.50 - $.50
= $4
which means the total contribution margin would be 1000 x $4
= $4000
And now subtracting Fixed manufacturing overhead and Fixed selling and administrative costs from the total contribution margin to get the operating income -
$4000 - $1200 - $1000
= $1800
