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2 years ago

Suppose the following statistics are available for the economy: CU = $60 billion RES = $100 billion DEP = $1000 billion

Business

1 answer:

sineoko [7]2 years ago

5 0

Answer:

a. 6.625.

b. C = 80 billion, DES = 800 billion and RES = 80 billion.

Explanation:

a) Monetary base = CU + RES = 160 billion. Money supply = CU + DES = 1060 billion. R-D ratio = 100/1000 = 0.10, C-D ratio = 60/1000 = 0.06, money multiplier = (1 + C-D)/(C-D + R-D) = (1 + 0.06)/(0.10 + 0.06) = 6.625.

b) Money multiplier = (1 + 0.10)/(0.10 + 0.10) = 5.5, money supply = monetary base x multiplier or money supply = 160 x 5.5 = 880 billion. CU + DES = 880 billion and C-D = 0.10. Hence C = 80 billion, DES = 800 billion and RES = 80 billion.

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Golden Eagle Company prepares monthly financial statements for its bank. The November 30 and December 31 adjusted trial balances

denis23 [38]

Answer:

Explanation:

The adjusting entries are shown below:

1. Supplies Expense A/c Dr $3,000 ($2,000 + $4,500 - $3,500)

To Supplies A/c $3,000

(Being supplies purchased)

2. Insurance Expense A/c Dr $2,000

To Prepaid Insurance A/c $2,000

(Being prepaid insurance adjusted)

3. Salary expense A/c Dr $16,000

To salary payable A/c $16,000

(Being salary adjusted)

4. Unearned revenue A/c Dr $1,500

To Service revenue A/c $1,500

(Being unearned revenue adjusted)

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2 years ago

Before your first day of work, it is a good idea to _____.

liraira [26]

Before your first day of work, it is a good idea to : C. Drive to work to see how long it takes

One of the most important thing to do in your first day of work is to display a good first impression, and coming late to your work at the first day will destroy your boss' first impression about you, in order to avoid that, you should check out the amount of time needed to get to work

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2 years ago

Consider four different stocks, all of which have a required return of 15 percent and a most recent dividend of $4.20 per share.

natka813 [3]

Answer:

Dividend yield for W = 5%

Dividend yield for X = 15%

Dividend yield for Y = 20%

Dividend yield for Z = 4.6%

Explanation:

For a constant growth stock $Price =\frac{D1}{r-g}$

If r is made subject of formula; r= $\frac{D1}{Price}+g$ = div yield + growth rate

For Stock W, given r = 15% and g= 10%; dividend yield = 15%-10%=5%

For Stock X, given r = 15% and g= 0%; dividend yield = 15%-0%=15%

For Stock Y, given r = 15% and g= -5%; dividend yield = 15%-(-5)%=20%

For Stock Z, the price of the stock today is calculated as follows:

Price of the stock today = $\frac{D1}{(1+ke)^1}+\frac{D2}{(1+ke)^2}+\frac{P2}{(1+ke)^2}$ .

where P2= $\frac{D3}{ke-g}$

Price of the stock today = $\frac{4.2(1.2)}{(1+0.15)^1}+\frac{4.2(1.2)^2}{(1+0.15)^2}+\frac{4.2(1.2)^2(1.1)}{(0.15-0.1)(1+0.15)^2}$ =109.57

Therefore dividend yield = $\frac[D1}{Price}$ = $\frac{4.2(1.2)}{109.57}=$ 4.6%

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2 years ago

Which of the following items will you need in order to complete the PROFILE?

Lady_Fox [76]

Answer:

c. Current bank statements

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Other items listed can be demanded by a particular college, but are not essential to complete the profile.

4 0

2 years ago

Read 2 more answers

To a greater or lesser degree, many governments can be considered pragmatic nationalists when it comes to foreign direct investm

lianna [129]

Answer:

Home Country Benefit

b - inflows of foreign earnings.

The Company operating in the Host Country will send some of it's profits back to it's Home Country and this will be treated as Foreign Earnings.

f-skills that can be leveraged internationally.

The Home Country will gain skills from their experience in the Host Country. These skills can then be used to be competitive on the global market.

Home Country Cost 

a- loss of jobs

The Home Country would lose the jobs that it's companies created in the Host Country. These are jobs that could have employed people in the Home Country but now employ people in the Host Country.

h-Host country limits profit expatriation

In order that they don't lose too much money to the Home Country, the Host Country might come up with laws that limit the amount of money that can be taken out from the country this limiting the amount of foreign Earnings that the Home country gets.

Host Country Benefit

c-substitute for imports

The products that the companies founded by FDI are producing could have been products that the Host Country used to import. Now that the goods are being made in the Host Country, there will be no need for imports.

e-increase in direct and indirect employment

The companies founded by FDI in the Host Countries will create employment for people in the company which is direct employment. Many auxiliary services such as drivers and caterers as an example will also spring up to take care of these newly employed folk thereby creating indirect employment.

i-transfer of new technology

The Company formed from FDI will bring with them technology from the Home Country that could be very beneficial to the Host Country.

Host Country Costs.

- Outflow of earnings from a foreign subsidiary

The Companies established through FDI will send some of their profits back to their home Countries. This means that the earnings would leave the Host Country instead of being reinvested in them.

d-loss of economic independence

These FDI companies tend to get very influential and powerful in the Host Country and can sometimes dictate policies. This would mean the companies have significant control over the resources of the Host Country which will lead to a loss of Economic independence. This is the main reason most people believe that China is interested in Africa.

g-loss of local Entrepreneurship

These companies created by FDI will bring with them better technology and capital that will enable them to be very competitive in the local Economy. This will discourage local Entrepreneurs who do not have the economic nor the financial backing to challenge the companies without making huge losses.

7 0

2 years ago