Answer:
Federal funds rate
Explanation:
The federal funds rate is the interest rate at which depository institutions (banks and thrifts) lend reserve balances to each other to meet reserve requirements.
Reserve requirements are the amount of funds required by the central bank that banks should keep as reserves to meet liabilities
the Federal funds rate is currently maintained at a range of 0% to 0.25%
Answer:
Common stock and $100
Explanation:
The journal entry is shown below:
Cash Dr $500 (100 shares × $5)
To Common stock $100 (100 shares × $1)
To Additional paid in capital in excess of par value - common stock (100 shares × $4)
(Being the issuance of the common stock is recorded)
For recording this we debited the cash as it increased the assets and credited the common stock and additional paid in capital as it increased the stockholder equity
The question is incomplete as it is missing the figures. The complete question is,
Mercer, Inc. provides the following data for 2019:
Net Sales Revenue 598000
Cost of Goods Sold 350000
The gross profit as a percentage of net sales is ________. (Round your answer to two decimal places.)
Answer:
Gross profit as a percentage of net sales = 0.4147 or 41.47%
Explanation:
The gross profit is a profit earned by a business through its trading activity. It is calculated by deducting the cost of goods sold from the net sales revenue and it is the profit earned by a business before deducting any operating and non operating expenses of the business.
Gross profit = Net Sales - Cost of goods sold
Gross Profit = 598000 - 350000 = $248000
The gross profit as a percentage of net sales is,
Gross profit as a percentage of net sales = Gross profit / Net Sales
Gross profit as a percentage of net sales = 248000 / 598000
Gross profit as a percentage of net sales = 0.4147 or 41.47%
Answer:
2.87%.
Explanation:
The total return, also refer to as Nominal return or Money return, is based on the nominal interest rate. For example, let's say that you deposited $100 into a bank account and the bank offers you an annual return of 11%. This 11% is the stated interest rate, it is known as nominal interest rate, and it is rate before taking into account the effect of inflation. When we deduct the effect of inflation from nominal rate, it gives us the real rate. Real rate reflects the Purchasing Power. The Fisher equation will be used to determine the expected inflation rate. The Fisher equation is as follows:
(1 + i ) = (1 + r) * (1 + h)
where
i = Nominal (Money) rate
r = Real rate
h = Inflation rate
Simply adjust the equation to calculate the inflation rate;
⇒ h = [(1 + i) / (1 + r)] - 1
OR h = [(1 + .11) / (1 + .079)] - 1 = 2.87%.
Answer:
1.15
Explanation:
If investment is made in equal proportions, it means that;
weight in risk free ; wRF = 33.33% or 0.3333
Let the stocks be A and B
weight in stock A ; wA = 33.33% or 0.3333
weight in stock B; wB = 33.33% or 0.3333
Beta of A; bA = 1.85
Let the beta of the other stock be represented by "bB"
Beta of risk free; bRF = 0
Beta of portfolio = 1 since it is mentioned that "the total portfolio is equally as risky as the market "
The weight of portfolio is equal to the sum of the weighted average beta of the three assets. The formula is as follows;
wP = wAbA + wBbB + wRF bRF
1 = (0.3333 * 1.85) + (0.3333*bB) + (0.3333 *0)
1 = 0.6166 +0.3333bB + 0
1 - 0.6166 = 0.3333bB
0.3834 = 0.3333bB
Next, divide both sides by 0.3333 to solve for bB;
bB = 0.3834/0.3333
w=bB = 1.15
Therefore, the beta for the other stock would be 1.15
