When Zane deposits $20,000 cash in his checkable deposit at the Citicorp and the Citicorp's required reserves increase by $5,000, the required reserve ratio is O $5,000. O 25 percent. O 75 percent. O 5 percent. O 20 percent.
Q: 13 0 Sophie owned a small business and had a rental property. At the time of her death, the rental…
A: Sophie's rental property was initially purchased for $100,000.At the time of her death, the property…
Q: In 1990, Saks 5th avenue was considering to open an outlet store similar to Nordstrom Rack stores.…
A: Saks 5th Avenue revenue was $ billionThey expected revenue to grow % each year for the next…
Q: Using the data in the table to the right, calculate the return for investing in the stock from…
A: Total dividends = $0.21 + $0.19 + $0.18 + $0.21Total dividends = $0.79Capital Gain = Final Price…
Q: Tyler Trucks stock has an annual return mean and standard deviation of 14 percent and 43 percent,…
A: To address this question, the initial step involves calculating the portfolio's expected return and…
Q: Gee-Gee's is going to pay an annual dividend of $2.05 a share next year. This year, the company paid…
A: Dividend For year 1 = d1 = $2.05Dividend For year 0 = d0 = $2Discount Rate = r = 10.3%
Q: You are considering purchasing stock in Canyon Echo. You feel the company will increase its dividend…
A: Recent dividend (D0) = $3.53Constant growth rate (g) = 4.2% or 0.042Expected Dividend (D1) = D0 × (1…
Q: Dave Krug finances a new automobile by paying $6,100 cash and agreeing to make 20 monthly payments…
A: Compound = Monthly = 12Down Payment = d = $6100Number of Payment = n = 20Payment = p = $530Interest…
Q: An efficient market does NOT require that: O each adjustment be perfect. O all known information be…
A: Market efficiency theory relates to the information incorporated into the asset. There are three…
Q: You are required to find how long it will take a sum of money (or anything else) to grow to some…
A: Real return rate4%Inflation rate6%FV=3*PV
Q: According to proponents of the efficient-market hypothesis, the best strategy for a small investor…
A: According to the Efficient Market Hypothesis (EMH), which posits that financial markets incorporate…
Q: Interest Rate risk depends upon how sensitive the bond price is to interest rate changes (i.e.,…
A: We are given the below statement -Interest rate risk depends upon how sensitive the bond price is to…
Q: What is the interest rate Carlton will receive in the
A: NotionalAmount is $6,000,000SpotExchange Rate at the time of Swap is SF0.80/$
Q: Assume that you are a consultant to Morton Inc., and you have been provided with the following data:…
A: Current Dividend = d0 = $1.4Current Price of Stock = p0 = $36Growth Rate = g = 4.8%
Q: Assume you can exchange $1 for 110 23 or € 86 in New York in Tokyo, the exchange rate is 1-C009 if…
A: Exchange rate refers to the rate at which one currency can be converted into another currency for…
Q: Under which situation is the simple rate equal to the effective annual rate, and under which…
A: Simple interest is a linear function of time since it is computed on the initial principal amount…
Q: Consider the following $1,000 par value zero-coupon bonds: Bond A B C D E Years to Maturity 1 2 3 4…
A: Yield to maturity for year 2 is 6.90%.Yield to maturity for year 1 is 5.40%.
Q: The current interest rates for 1-year T-strips and 1-year B-rated corporate strips are 3% and 6%,…
A:
Q: Stryker Corporation is a leading medical technology company headquartered in Kalamazoo, Michigan,…
A: Intrinsic Value : In finance and investing, intrinsic value refers to the true, inherent worth of an…
Q: RiverRocks, Inc., is considering a project with the following projected free cash flows: Year 0 2…
A: NET PRESENT VALUE (NPV) = PRESENT VALUE OF CASH INFLOW - PRESENT VALUE OF CASH OUFLOW.
Q: Consider the following information: State of Economy Boom Bust Probability of State - of Economy .75…
A: State of economyProbabilityStock AStock BStock CBoom0.750.070.180.27Bust0.250.12-0.08-0.21
Q: Yields on short-term bonds tend to be more volatile than yields on long-term bonds. Suppose that you…
A: Loss on Portfolio= portfolio * modified duration * Change in basis point of 5 year bond / Change in…
Q: Samuel's profit/loss
A: current spot rate is $1.286/S$Strike price (US$ /Singapore dollar) is $1.371Premium (US$ /Singapore…
Q: ABC purchases 124 shares of XYZ company at $31 per share in its margin account. ABC finances part of…
A: Rate of return refers to the metric that demonstrates the income earned through the investment by…
Q: What is Social Security and what are some of the benefits/advantages? There are different types of…
A: Social Security is a government program in the United States that provides financial assistance to…
Q: The common stock of Etar Company currently sells for $32.50 per share. In an attempt to determine…
A: Cost of debt7%Cost of equity11.00%Cost of preferred stock6.8%Tax rate30%Growth rate5%Debt's…
Q: The interest on a particular savings account is compounded continuously. The account initially had…
A: Investment refers to the allocation of money or resources with the expectation of generating income…
Q: Consider a world where the CAPM holds for all securities. The risk-free rate is 1%, and the standard…
A: Here, Risk Free Rate1.00%Standard Deviation of Market16.00%Correaltion between market and…
Q: How much will deposits of $40 made at the end of each month amount to after 7 years if interest is…
A: According to the financial theory known as the time value of money, an asset's intrinsic value is…
Q: Titan Mining Corporation has 7.3 million shares of common stock outstanding, 265,000 shares of 4.5…
A: The weighted average cost of capital is a financial metric crucial for assessing a company's overall…
Q: Problem 10-1 Expected Return (LG10-1) Compute the expected return given these three economic states,…
A: Expectedreturn is the amount of return which is earned by the investor from his investment. The…
Q: Harrison Holdings, Inc. (HHI) is publicly traded, with a current share price of $39 per share. HHI…
A: “Since you have posted a question with multiple sub parts, we will provide the solution only to the…
Q: Your younger sibling asks you to borrow $20. You, a smart financial professional, agree but also…
A: Net present value is helpful for investors in decision-making through estimating the profitability…
Q: A mortgage for a condominium had a principal balance of $44, 700 that had to be amortized over the…
A: The loan amount is $44,700.The loan period is 6 years.The interest rate is 4.42% compounded…
Q: Suppose that initially a share price is £80 and each month thereafter either increases by 1% or…
A: Let S be the share price~Initially, S = £~ Each month, S changes by ~This compound continuously at…
Q: Continental Railroad Company is evaluating three capital investment proposals by using the net…
A: NPV:Net present value is the most important concept of finance. It is used to evaluate the…
Q: Compute the interest paid on a 4-year lease for a $28,640 car if the annual rate of depreciation is…
A: Interest refers to the payment that the investor or borrower pays on the amount borrowed, it is the…
Q: Pam decides to have a small building constructed in her backyard and hires a contractor to do this…
A: Value of Project = PV = $24,000.APR = rate = 4%Term = nper = 3 years
Q: The expected market return is 5%. The risk-free rate is 3% . According to the CAPM equation, what is…
A: CAPM is also known as capital asset pricing model. It helps in know the expected return on the…
Q: 2. Green Company needed some cash --- fast. So it factored $200,000 of its accounts receivable with…
A: Variables in the question: Accounts receivable factored=$200,000Finance charge(% of the…
Q: Archibald Andrews has just learned that he won $1,040,000 in the lottery. Archie has three options…
A: Present value, also known as present discounted value, is a financial concept used to determine the…
Q: Matterhorn Mountain Gear is evaluating two projects with the following cash flows: Project X Project…
A: With NPV, investors may represent varying degrees of risk by using different discount rates. This…
Q: An investor wants to find the duration of a(n) 10-year, 7% semiannual pay, noncallable bond that's…
A: Duration of bond is the weighted period of bond required to recover all cash flow from the bond and…
Q: As the legal representative of your sister's estate, you would like to prepare an optional return…
A: The term sources of income refers to the origin from where the income is earned by a company or an…
Q: Parker & Stone, Inc., is looking at setting up a new manufacturing plant in South Park to produce…
A: Proper cash flow for the Initial investment or the Initial cost= Opportunity cost of the land + Cost…
Q: Suppose that there are only two risky assets in the economy: stock X and stock Y. In addition, there…
A: Solution A:(a) According to the Capital Asset Pricing Model, the expected return on an asset is…
Q: Butler Corporation is considering the purchase of new equipment costing $69,000. The projected…
A: The NPV is the tool used for the assessment of an investment's net benefits. This tool will help in…
Q: If Nominal Interest Rate is 6% and the inflation premium is 2% the real interest rate earned by the…
A: Nominal interest rate is the stated rate of interest on the financial instrument whereas real…
Q: Suppose a ten-year, $1,000 bond with an 8.3% coupon rate and semiannual coupons is trading for…
A: The set rate of interest that a bond's issuer promises to pay a fixed money amount to its bondholder…
Q: A lump-sum payment of $1,040,000 right now, in which case 45% will be deducted for taxes. We do not…
A: The current worth of the amount that can be invested further for certain period of time with given…
Q: You are a consultant to a large manufacturing corporation considering a project with the following…
A: Capital budgeting:Capital budgeting is a crucial process in which businesses and organizations make…
When Zane deposits $20,000 cash in his checkable deposit at the Citicorp and the Citicorp's
O $5,000.
O 25 percent.
O 75 percent.
O 5 percent.
O 20 percent.
Step by step
Solved in 3 steps
- Cy loans Mookie The Beagle Concierge $1,000 at 6% annual interest. Record the transaction as a loan payable as follows. Required: 1. Complete a Deposit. a. Select (+) New icon > Bank Deposit b. Select Account: 1001 Checking c. Select Date: 01/12/2023 d. In Add Funds to This Deposit section, select Account: + Add New > Account Type: Other Current Liabilities > Detail Type: Loan Payable > Name: Loan Payable > Number: 2300 > Save and Close e. Select Payment Method: Check f. Enter Reference Number: 5002 g. Enter Amount: 1000.00 h. Select Save and close i. What is the Amount of the Loan Payable? Note: Answer this question in the table shown below. Round your answer to the nearest dollar amount. Amount of the loan payable () View the Transaction Journal for the Deposit. a. From the Navigation Bar, select Accounting b. From the Chart of Accounts, select 2300 Loan Payable > View Register c. From the Register, select the transaction just recorded > Edit d. From the…Cy loans Mookie The Beagle Concierge $1,000 at 6% annual interest. Record the transaction as a loan payable as follows. Required: 1. Complete a Deposit. a. Select (+) New icon > Bank Deposit b. Select Account: 1001 Checking c. Select Date: 01/12/2023 d. In Add Funds to This Deposit section, select Account: + Add New > Account Type: Other Current Liabilities > Detail Type: Loan Payable > Name: Loan Payable> Number: 2300 > Save and Close e. Select Payment Method: Check f. Enter Reference Number: 5002 g. Enter Amount: 1000.00 h. Select Save and close i. What is the Amount of the Loan Payable? Note: Answer this question in the table shown below. Round your answer to the nearest dollar amount. i. Amount of the loan payableA deposit of $1500 is made into a fund on March 18. The fund earns simple interest at 5%. On August 5, the interest rate changes to 4.5%. How much is in the fund on October 23? Answer: $Blank 1 Blank 1 Add your answer
- Suppose that the household, with the same P10,000 per month earnings, decides to deposit P3,333.33 in checking account and P6,666.67 in a bond fund. Assume that the bond fund pays 1.5% interest per month or an annual interest rate of 18% and that a month has 30 days. After 10 days the money in the checking account has been depleted and decides to pull from the bund fund another 10,000 and deposited into checking account to finance a 10-day expenses. How much is the average quantity of money it demands per month? * O P10,000 O P3333.333 PO P1500A person has some money in his/her checking account (say $100) and five transactions each of 10, 20 30, 40 and 50 dollars depositing money in the account, while five transitions each of 20, 30,40, 50 ,60 dollars are crediting out of his/her account. If the person gets 2% per day interest on his/her residual amount how you will synchronize the threads of deposit and withdrawal if all are happening at the same time. What will be the person’s account balance at the end of the day?Assume that Jill deposits $20,000 in cash into her checking account at Welcome National Bank and the central bank has set a required reserve ratio of 10%. Explain the immediate effect of her deposit on the M1 measure of the money supply. If Welcome National Bank holds an additional 10% of her deposit in reserves, calculate the following: the maximum amount the bank will loan out the maximum increase in the money supply as a result of this transaction
- On December 31, 2020 LOL Co cash and cash equivalents account balance per ledger is as follows: 1. Demand deposit Demand deposit 2 with another bank Undeposited collections • Time deposit 30 days • NSF check customer 35-day money market placement due 1/28/2021 45 day commercial paper sdue 02/04/2021 • Savings deposit in a closed bank • IOU from an employee Preferred redemption fund P 2,200,000 (100,000) 300,000 500,000 20,000 300,000 80,000 50,000 20,000 100,000 Additional information includes a. Included in the demand deposit is a customer check at P200,000 dated January 19,2020. b. Customer's check of P50,000 is also included in the demand deposit dated Dec 31, 2019. The customer was informed that a new check will be issued in replacement but not yet done. c. Check of P70,000 was issued as of Dec 31, 2020 but yet to be mailed or delivered as of January 19, 2021. d. Check in payment of supplies for P60,000 was issued and recorded as of December 31,2020 but dated January 29,2021 What…Assume that Money Wang sells his bonds to BSP amounting to P50,000. From this,Money Wang receives a check awarded by BSP with the same amount. Money Wangdeposits the check at Metrobank. In the banking system, BSP’s required reserve ratio is20%, and that the banking system currently has no excess reserves. Answer thefollowing questions:1. By how much will be the change in Metrobank’s checkable deposit on its balance sheet? 2. How much is the change in the required reserves and the excess reserves on Metrobank’s balance sheet? 3. Now assume that Metrobank lends out all of its excess reserves to Roberta Marasigan. Determine the amount that Metrobank can lend to Roberta Marasigan.4. Roberta Marasigan deposits the loaned amount in BDO. BDO, just like Metrobank, loans out also all of its excess reserves from Roberta Marasigan’s deposit to Noella Bautista.A. What will be the amount of the loan by BDO?B. Determine the change in the checkable deposit on the balance sheet of BDO. 5. Now think of…Suppose that a lottery winner deposits $20 million in cash into her transactions account at the Bank of America. Assume a reserve requirement of 20 percent and no excess reserves in the banking system prior to this deposit. Show the changes on the Bank of America balance sheet when the $20 million is initially deposited. Instructions: Round your responses to one decimal place
- You noted the following composition of BBBCompany’s “cash account” as of December 31, 2020: Demand deposit account P2,000,000 Time deposit – 30 days 1,000,000 NSF check of customer 40,000 Money market placement (due June 30, 2021) 1,500,000 Savings deposit in a closed bank 100,000 IOU from employee 20,000 Pension fund 3,000,000 Petty cash fund 10,000 Customer check dated January 1, 2021 50,000 Customer check outstanding for 18 months 40,000 Total P7,760,000 Additional information follows: a) Check of P200,000 in payment of accounts payable was recorded on December 31, 2020 but mailed to suppliers on January 5, 2021. b) Check of P100,000 dated January 15, 2021 in payment of accounts payable was recorded and mailed on December 31, 2020. c) The company uses the calendar year. The cash receipts journal was held open until January 15, 2021, during which time P400,000 was collected and recorded on December 31, 2020. 36. The cash and cash equivalents to be shown on the December 31, 2020…You deposit $100, $150, & $200 in a bank account at the end of years 1,2,& 3 and earn 7%interest. If (P/G, 7%, 3)=2.506 and (A/P, 7%, 3)=.3811 what is the present value (now) ofthese deposits.Green Company uses the Baumol model tomanage its disbursement account. Monthlycash disbursement is P1,200,000. Cash in thisaccount could have earned 5% on moneymarketable securities. Green incurs P576every time cash is transferred to this account.The optimum cash balance is A. 576,000.00B. 166,276.88C. 124,707.66D. 432,000.00