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3 years ago

The federal reserve has kept interest rates very low. some might argue that this could lead to

1 answer:

5 0

The way that the federal reserve has kept the interest rates very low had made other people argue that this would likely lead to inflation. Inflation occurs when there is a rise in terms of the levels of prices of goods and prices with the power of purchasing lowers or will likely fall.

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What is a mission statement?

allochka39001 [22]

I would say D sounds more appropriate

3 0

4 years ago

Read 2 more answers

The risk-free rate is 2.2 percent and the market expected return is 11.9 percent. What is the expected return of a stock that ha

zepelin [54]

Answer:

the expected return of a stock is 10.542%

Explanation:

The computation of the expected return on a stock is shown below:

Expected return on stock is

= Risk free rate + beta × (market rate of return - risk free rate)

= 2.2% + 0.86 × (11.9% - 2.2%)

= 2.2% + 0.86 × 9.7%

= 2.2% + 8.342

= 10.542%

hence, the expected return of a stock is 10.542%

We simply applied the above formula so that the correct value could come

And, the same is to be considered

5 0

3 years ago

The account balances and income statement of Winfrey Towing Service on June 30, 2018, follow:

Alina [70]

Answer:

1. WINFREY TOWING SERVICE

Statement of Comprehensive Income

Service revenue 10,800

Rent expense (550)

Salaries expense (1,900)

Dividends paid <u>(4,000)</u>

Net income <u> 4,350</u>

Statement of Retained Earnings

Retained earnings b/f 3,900

Add: Net income 4,350

Retained earnings c/f 8,250

2. Statement of retained earnings report changes in retained earnings of a company in a given accounting year.

Explanation:

In this question, we need to obtain the net income of the company, which is service revenue minus expenses minus dividend. Then, the statement of retained earnings is prepared by taking cognisance of the retained earnings brought forward and add the net income for the year.

7 0

4 years ago

Superior has provided the following information for its recent year of operation:

Anika [276]

Answer:

Option (a) is correct.

Explanation:

Given that,

Beginning balance of Retained Earnings = $75,000

Net income = $26,000

Ending retained earnings = $91,000

Total Balance during the year:

= Beginning balance of Retained Earnings + Net income

= $75,000 + $26,000

= $101,000

Dividend declared:

= Total Balance during the year - Ending retained earnings

= $101,000 - $91,000

= $10,000

Therefore, the amount of dividend declared by the Superior during its recent year of operation is $10,000.

3 0

3 years ago

Your corporation has a marginal tax rate of 35% and has purchased preferred stock in another company. The before-tax dividend yi

Leni [432]

Answer:

5.37%

Explanation:

According to the scenario, computation of the given data are as follow:-

We can calculate the company’s after tax return on preferred by using following formula:-

Company’s After Tax Return = Before Tax Dividend Yield Rate on Preferred Stock × [1 - (1 - Dividend Exclusive) × (Tax Rate)]

= 6% × [1 - (1 - 70%) × (35%)]

= 0.06 × [1 - (1 - 0.70) × (0.35)]

= 0.06 × [1 - (0.30) × (0.35)]

= 0.06 × (1 - 0.105)

= 0.0537

= 5.37%

We simply applied the above formula to determine the company after tax return

8 0

3 years ago