Answer:
$0.5 Million
Explanation:
The computation of change in profits is shown below:-
Rate-sensitive assets $30 million
Rate-sensitive liabilities $20 million
Gap = $30 million - $20 million
= $30 million - $20 million
= $10 million
x rise in percentage points = 5%
Change in profit = Gap × x rise in percentage points
= $10 × 5%
= $0.5 Million
I think d or a but probably d because the act gives them satisfaction
Based on the marginal propensity to consume, the required tax cut to get a $300 billion stimulus is $400 billion.
<h3 /><h3>How much of a tax cut is needed?</h3>
This can be found by the formula:
= Required fiscal stimulus / Marginal propensity to consume
Solving gives:
= 300 / 0.75
= $400 billion
In conclusion $400 billion of tax cuts are needed.
Find out more on marginal propensity to consume at brainly.com/question/17930875.
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Answer:
Net present value of the project is $2,903
Explanation:
Net present value is the net of present value of all cash inflow or outflow of a project. It measure the net outcome of a project in current value terms. All the cash flows are discounted using a required rate of return.
All the calculations and workings are in the attached MS excel find please find it.
Answer:
4.23%
Explanation:
For computing the rate of return on the fund, we need to do following calculations
1. The fund after deducting the front-end load is
= $21,600 - $21,600 × 4%
= $21,600 - $864
= $20,736
2. Now number of bought is
= $20,736 ÷ $18 per share
= $1,152
3. The closed NAV is
= $18 + $18 × 10%
= $18 + $.8
= $19.8
4. So, the end year asset value is
= Closed NAV × number of shares bought
= $19.8 × 1,152
= $22,809.60
5. Now the year end investment value after considering the expense ratio is
= $22,809.60 × (1 - 1.3%)
= $22,513.0752
6. Now the rate of the return is
= ($22,513.0752 - $21,600) ÷ ($21,600)
= 4.23%