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alexdok [17]
2 years ago
7

Imagine you are running a bank and you are deciding how much of your funds to deposit with the Fed. Your alternative to depositi

ng funds with the Fed is to lend them to businesses and individuals. What are you likely to do if the Federal Reserve increases the interest rate that it pays on your deposits with them
Business
1 answer:
muminat2 years ago
5 0

If the Federal Reserve increases the interest rate that it pays on your deposits with them increase reserves at the Fed and reduce loans.

If the Federal Reserve increases the interest rate that it pays on your deposits with them, this means that the amount I deposit with the Fed would earn a higher rate of interest.

The aim of businesses is to make profit. As a result, I would increase the amount I deposit with the Fed in order to earn a higher rate of interest on my deposit and I would reduce the amount of loans I make.

To learn more, please check: brainly.com/question/14331161

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perline, inc., has balance sheet equity of $6.2 million.At the same time, the income statement shows net income of $948600. The
ikadub [295]

Answer:

The target stock price in one year is $264.75

Explanation:

We first calculate the ROE as below

ROE= Earnings / Book value of Equity

ROE= $948,600 / $6,200,000

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The payout ratio is:

b=  Dividend / Net income

b = $493,272 / $948,600

b = 0.52

So the sustainable growth rate is:

g = ROE * (1-b)

g = 0.153 * (1-0.52)

g = 0.153 * 0.48

g = 0.07344

The earning in the first year are

EPS1 = $948,600 / 100,000  * (1 + 0.07344)

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According to the benchmark PE ratio, the target stock price in one year is

Price = EPS1 * 26

Price = $10.1827 * 26

Price = $264.75

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3 years ago
Increasing the government budgetary surplus or decreasing the deficit is desirable in a period of?
gayaneshka [121]
It is desirable in a period of INFLATION. During inflation, there is general increase in price and decrease in the value of money. Thus, during inflation the government stabilizes the economy by increasing it budgetary surplus, that is, it takes in more than it spends or by decreasing its deficit. 
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Mamont248 [21]

Answer:

Profit will increase by 5,975

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Total Variable Cost =100,000+20% of 20,000

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and selling cost (350)

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7 0
3 years ago
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