3 years ago

4.2. Why do you think capital is important?

1 answer:

6 0

Answer:

Capital is important because it's that part of an asset that can be used to repay its depositors, customers, and other claimants in case the bank doesn't have enough liquidity due to losses it suffered in its operations. Capital also helps the bank in times of a liquidity crisis.

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is an unlevered firm with a total market value of $3,900,000 with 60,000 shares of stock outstanding. The firm has expected EBIT

Korvikt [17]

Answer:

Earnings per share= $3.58

Explanation:

Earnings per share(EPS) = Earnings attributable to share/Number of shares

Price per share = $3,900,000/60,000=$65 per share

The units of shares to be re-purchased with debt proceed

= The proceeds from debt/share price

=$975,000/$65= 15,000

The number of shares outstanding after repurchased = 60,000-15,000= 45,000 units

EBIT 220,000

Less interest (6%×975,000) <u> (58,500)</u>

Earnings attributable to shares <u> 151,500</u>

Earnings per share 151,500/45,000 units=$3.58

Earnings per share= $3.58

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3 years ago

FOR THOSE WHO WANTS POINT!!!!!!! AND BRAINLIEST

erik [133]

Wait what?? What are you trying to ask?

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3 years ago

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Suppose that the price of product x rises by 20 percent and the quantity supplied of x increases by 15 percent. The coefficient

SSSSS [86.1K]

Answer: Coefficient of elasticity of supply is 0.75.

Explanation:

Price elasticity of supply measures the responsiveness of quantity supplied to a change in the price of the good. It can be measured using the percentage point method,

$e_{s} = \frac{Percentage change in Quantity supplied}{Percentage change in price}$