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3 years ago

PLEASE ANSWER If The Fed reduces interest rates will banks make more loans or fewer loans?

1 answer:

7 0

More loans because with lower interest rates the people pulling out the loans will have to pay the bank less money for bigger loans.

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Sultan Services has million shares outstanding. It expects earnings at the end of the year of million. Sultan pays out 60% of i

sukhopar [10]

Answer: $73.33

Explanation:

Dividend discount model can be used to calculate the value of the shares:

= Earnings paid out / (Cost of equity - growth rate)

Earnings to be paid out:

= 60% * 5,500,000

= $3,300,000

Value of shares:

= 3,300,000 / ( 9% - 6%)

= $110,000,000

Share price:

= Value of shares / Number of shares outstanding

= 110,000,000 / 1,500,000

= $73.33

7 0

3 years ago

An insurance policy sells for $1200. Based on past data, an average of 1 in 100 policyholders will file a $10 comma 000 clai

Tanzania [10]

Answer:

Expected Value = $740

Expected profit = $22.2m

Explanation:

We can easily calculate the expected value and expected profit/loss in this situation by some minor working

Expected values = Expected Claim - per policy cost

Expected profit/loss = (Expected claim - per policy cost) x number of policies

As you can see per policy cost and no of policies are given in the question data we just need to find expected claim for calculation of expected profit or loss and expected value

Expected Claim = (1/100x$10,000)+(1/250x$40,000)+(1/400x$80,000)

Expected Claim = 100 + 160 + 200

Expected Claim = 460

Now we have a value of expected claim lets put it into Expected profit/loss formula and expected value formula

Expected value = 460-1200

Expected value = -740

-$740 is the value per policy

Expected profit/loss = (460 - $1200 per policy) x 30,000

Expected profit or loss = -22,200,000

Expected loss to the customer = -$22.2 m

Expected profit for the company = $22.2m

3 0

3 years ago

A client who has depression is admitted to treatment on a voluntary basis. While in the hospital, the client makes several comme

GuDViN [60]

Answer:contact the psychiatrist for initiation of commitment proceedings.

Explanation:

This proceeding may legally order a person to receive psychiatric treatment at the hospital because the person is seen to may be danger to themselves and suspected that they may commit harm against their own body.

Some people may refuse treatment because they don't feel like they need the treatment and believe there is nothing wrong with them hence an initiation of commitment proceeding may be crucial to give them the help that they actually need.

A person who says they wish to end it all may end up taking their own lives if they are not admitted to a psychitric treatment.

6 0

3 years ago

Allure Company manufactures and distributes two products, M and XY. Overhead costs are currently allocated using the number of u

Crazy boy [7]

Answer:

Results are below.

Explanation:

First, we need to calculate the allocation rates:

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Production setups= (73,000 / 30)= $2,433.33 per setup

Material handling= (49,000 / 91)= $538.46 per number of part

Packaging costs= (246,000 / 156,000)= $1.58 per unit

Now, we need to allocate costs to Product XY:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Production setups= 2,433.33*18= 43,799.94

Material handling= 538.46*23= 12,384.58

Packaging costs= 1.58*60,000= $94,800

Total allocated costs= $150,984.52

Finally, per unit basis:

Unitary cost= 150,984.52 /60,000= $0.27

8 0

3 years ago

The following accounts were taken from the Adjusted Trial Balance columns of the end-of-period spreadsheet: Accumulated Deprecia

ludmilkaskok [199]

Answer:

all the given figures are wrong but i explained the correct procedure.

Explanation:

INCOME STATEMENT

Fees earned 17400

Expenses:

Depreciation expense 1300

Insurance expense 400

Supplies expense 3800 5500

Net Income 11900

Therefore, The Net income for the period is $11900.

3 0

3 years ago