Answer:
A fidelity bond
Explanation:
Fidelity bond or coverage is the kind of insurance which protects the company or its business owner from the theft, fraud by an employee of the company.
This bond will provide guarantee that if the business owner or company suffers any loss because of employee dishonesty, the chosen insurer will share the loss within the limitations stated in the contract.
Answer:
$1,306,986
Explanation:
Calculation to determine What is the levered value of the equity
First step is to calculate the VL
VL = {[$338,000 × (1 - .34)] / .142} + (.34 × $400,000)
VL= $1,706,986
Now let calculate the levered value of the equity (VE)
VE = $1,706,986 - $400,000
VE = $1,306,986
Therefore the levered value of the equity is $1,306,986
Answer:
Explanation:
The discount rate is the interest rates on loans that the Federal Reserves makes banks. Banks occasionally borrow from the Federal Reserve when they find themselves short on reserves. A higher discount rate decreases banks' incentives to borrow reserves from the Federal Reserve, thereby reducing the quantity of reserves in the banking system and causing the money supply to fall
The federal funds rate is the interest rate that banks charge one another for short term loans. When the Federal Reserve uses open-market operations to buy government bonds, the quantity of reserves in the banking system increases, banks' demand for borrowed reserves declines , and the federal funds rate decreases.
