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Dimas [21]
3 years ago
7

In the week to come, a bank expects $55 million in incoming deposits, $75 million in acceptable loan requests, $35 million in mo

ney market borrowings, $10 million in deposit withdrawals, and $30 million in loan repayments. The bank is expecting a: A. liquidity deficit. B. liquidity surplus. C. balanced liquidity position. D. liquidity reversal. E. None of the above.
Business
1 answer:
stellarik [79]3 years ago
5 0

Answer:

B. liquidity surplus

Explanation:

The expected cash inflows and outflows of the bank can be summarized using the formula provided below:

Net inflow/(outflow)= incoming deposits-acceptable loan requests+ market borrowings-deposit withdrawals+loan repayments

incoming deposits=$55 million(inflow)

acceptable loan requests=$75 million(outflow)

money market borrowings=$35 million(inflow)

deposit withdrawals= $10 million(outflow)

loan repayment=$30 million(inflow)

Net inflow/(outflow)=$55 million-$75 million+$35 million-$10 million+$30 million

net inflow(outflow)=$35 million

The above net inflow of $35 million represents liquidity surplus

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Blossom Corp. will pay dividends of $5.00, $6.25, $4.75, and $3.00 in the next four years. Thereafter, management expects the di
Shkiper50 [21]

Answer:

Present value = $35.00326585 rounded off to $35.00

Explanation:

Using the dividend discount model, we calculate the price of the stock today. It values the stock based on the present value of the expected future dividends from the stock. To calculate the present value of the stock, we will use the following formula,

Present value = D1 / (1+r)  +  D2 / (1+r)^2  +  ...  +  Dn / (1+r)^n  +

[(Dn * (1+g)  /  (r - g))  /  (1+r)^n]

Where,

  • r is the required rate of return
  • g is the constant growth rate in dividends
  • n is the number of years

Present value = 5 / (1+0.155)  +  6.25 / (1+0.155)^2  + 4.75 / (1+0.155)^3  +  

3 / (1+0.155)^4  +  [(3 * (1+0.07)  /  (0.155 - 0.07))  /   (1+0.155)^4]

Present value = $35.00326585 rounded off to $35.00

3 0
3 years ago
Great Lakes Steel Supply is losing significant market share and thus its managers have decided to decrease the firm's annual div
Colt1911 [192]

Answer:

There's an error in the numbers for this question; I found the correct one and pasted it below;

"Great Lakes Steel Supply is losing significant market share and thus its managers have decided to decrease the firm's annual dividend. The last annual dividend was $1.30 per share but all future dividends will be decreased by 2.75 percent annually. What is a share of this stock worth today at a required return of 15.5 percent? "

Explanation:

Use dividend discount model (DDM) to calculate the stock price

P0 = \frac{D0(1+g)}{r-g}

whereby,

P0 = Current price

D0 = Last dividend paid = 130

g = growth rate = -275% or -2.75 as a decimal

r = required return = 155% or 1.55 as a decimal

Next, plug in the numbers to the DDM formula above;

P0 = \frac{1.30(1-0.0275)}{0.155 + 0.0275} \\ \\ = \frac{1.2643}{0.1825} \\ \\ =6.9277

Therefore this stock is worth $6.93

6 0
3 years ago
Laura, a sales manager at Dexter Inc., claims that labor and management are rivals for most organizations. Brooke, the HR manage
Afina-wow [57]

Answer:

Dexter Inc.

The statement that best supports Brooke's perspective is:

Examples of cooperation between labor and management include employee involvement in decision making and self-managing teams.

Explanation:

When labor and management act as rivals or adversaries, it does not benefit their organizations.  They should find common grounds for cooperation.  Organizations should involve their employees in more decision-making.  Despite their incongruent goals, unions and management should find win-win solutions.  Paying employees a living wage does not impoverish the organization.  On the contrary, everybody is greatly enriched.

3 0
3 years ago
How does international employement helps in improving economic conditions of the country​
forsale [732]

Explanation:

Country can get lots of foreign currency as the remittance which can be used to establish industries in the country. Such industries provide job opportunities in the country.

People who go overseas to work can learn different skills and technologies which can be beneficial for the development of our own country.

7 0
2 years ago
If conversion costs are added evenly throughout the production process and the unit have made it 50% of the way through the prod
mestny [16]

Answer: C. 50%

Explanation:

From the above question, If conversion costs are added evenly throughout the production process and the unit have made it 50% of the way through the production process then the percentage completion for conversion costs is 50%

3 0
2 years ago
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