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BabaBlast [244]
2 years ago
9

A bank has $500 in checking deposits. Interest and noninterest costs on these accounts are 6%. This bank has $250 in savings and

time deposits with interest and noninterest costs of 14%. This bank has $250 in equity capital with a cost of 25%. This bank has estimated that reserve requirements, deposit insurance fees and uncollected balances reduce the amount of money available on checking deposits by 15% and on savings and time deposits by 4%. What is the bank's before-tax cost of funds
Business
1 answer:
defon2 years ago
5 0

Answer:

<em>13.29%</em>

<em>Explanation:</em>

Answer :- Amount in checking deposit= $500 million-15%= $425 million

Amount in saving and time deposit= $250 million-4%= $240 million

Amount in equity capital = $ 250 million

banks before tax cost of funds=

checking deposit = $425*6/100= $25.5 million

Saving and time deposit= $ 240*14/100= $ 33.6 million

equity capital=$250 *25/100= $ 62.5 million

Weighted average cost of funds (WACC)= $25.5+33.6+62.5/($425+240+250)

=$121.6/915= 0.1329 or 13.29%

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Alenkasestr [34]

Answer:

-$16.78%

Explanation:

Given that

Proceeds from selling the shares = $4,301

Beginning price = $12.92

The computation of capital gains yield is shown below:-

End price per share

= $4,301 ÷ 400

= $10.7525 per share

Capital gains yield = (End price - Beginning price) ÷ Beginning price

= ($10.7525 - $12.92) ÷ $12.92

= -$2.1675 ÷ $12.92

= -$16.78%

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2 years ago
On may 1, the cash account balance was $72,600. during may, cash receipts totaled $345,600 and the may 31 balance was $95,230. d
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<span>$322,970 The expression for the cash balance at the end of the month is B = I + R - P where B = Balance at the end of the month. I = Initial balance at the beginning of the month. R = Receipts received during the month. P = Payments made during the month. So let's substitute the known values we have and solve for P B = I + R - P 95230 = 72600 + 345600 - P 95230 = 418200 - P 95230 + P = 418200 P = 322970 So the cash payments made were $322,970</span>
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2 years ago
According to research, a majority of adolescents' favorite computer games involve
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According to research, a majority of adolescents favorite computer games involve violence.
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2 years ago
Problem 1-20 Variable and Fixed Costs; Subtleties of Direct and Indirect Costs [LO1-1, LO1-4] Madison Seniors Care Center is a n
Alenkasestr [34]

Answer:

a. leasing the MOW van

  • direct cost to Meals-On-Wheels program
  • indirect cost to particular seniors served by the program
  • fixed cost with respect to the number of seniors served

b. incidental supplies such as salt, pepper, napkins, and so on  

  • direct cost to Meals-On-Wheels program
  • direct cost to particular seniors served by the program
  • variable cost with respect to the number of seniors served

c. gasoline consumed by the MOW van  

  • direct cost to Meals-On-Wheels program
  • indirect cost to particular seniors served by the program
  • variable cost with respect to the number of seniors served

d. rent on the facility that houses Care Center, including the MOW

  • indirect cost to Meals-On-Wheels program
  • indirect cost to particular seniors served by the program
  • fixed cost with respect to the number of seniors served

e. salary of the part-time manager of the MOW

  • direct cost to Meals-On-Wheels program
  • indirect cost to particular seniors served by the program
  • fixed cost with respect to the number of seniors served

f. depreciation on the kitchen equipment used in the MOW  

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  • indirect cost to particular seniors served by the program
  • fixed cost with respect to the number of seniors served

g. hourly wages of the caregiver who drives the van and delivers the meals

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  • indirect cost to particular seniors served by the program
  • variable cost with respect to the number of seniors served

h. complying with H&S regulations in the kitchen  

  • direct cost to Meals-On-Wheels program
  • indirect cost to particular seniors served by the program
  • fixed cost with respect to the number of seniors served

i. mailing letters soliciting donations to the MOW

  • direct cost to Meals-On-Wheels program
  • indirect cost to particular seniors served by the program
  • fixed cost with respect to the number of seniors served
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Ksju [112]

Natalie wants to make a 25% profit on a $70000 sale. That would be:

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On this $92750, there's a closing cost of $1200,

Add $92750 + $1200 = $93950.

$93950 to the nearest hundred will be $94000.

Natalie should make the final sale price $94000 in order to make a profit of %25.

7 0
2 years ago
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