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3 days ago

Someone with dollar bills to lend will never agree to make a loan with a nominal interest rate of less than zero because:

1 answer:

7 0

<span>A negative nominal interest rate indicates a scenario where depositors must pay banks to keep their money. For instance, if the annual nominal interest rate stands at -1 percent, a $1000 deposit would result in a $10 loss the subsequent year, which essentially means that individuals with cash would be unlikely to agree to any loan arrangements featuring a negative nominal interest rate.

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NewTech Corporation is offering a 10% stock dividend. The firm currently has 200,000 shares outstanding and after-tax profits of

marusya05 [3428]

After the stock dividend, earnings per share stand at $3.636. To elaborate, there are 200,000 shares currently available, with after-tax profits recorded at $800,000. The current price of the shares is set at $48, while the stock dividend is at 10%. After the dividend, the updated number of shares is calculated as 200,000*(1+10%) = 220,000. Consequently, the earnings per share after the dividend is $800,000/220,000, resulting in $3.636.

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11 days ago

Sommer, Inc., is considering a project that will result in initial aftertax cash savings of $1.75 million at the end of the firs

marusya05 [3428]

The company is prepared to invest a maximum of $18,817,204 for the project.

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6 days ago

Target purchases home goods made by a supplier in China. Target's stores in the United States sell 200,000 units of home goods e

Free_Kalibri [3484]

Information Provided:

Yearly Demand (D) = 200,000 × 12 = 2,400,000 units

Ordering Cost (S) = $500 each order

Carrying Cost (H) = 20% of the Unit Price = $10 × 20% = $2

Cost per Unit = $10

Calculations:

1) Optimal Order Quantity = $\sqrt{\frac{2DS}{H} }$

Optimal Order Quantity = $\sqrt{\frac{2\times 2,400,000\times 500}{2} }$

$Optimal\ Order\ Size = 34,641 Units (Approx)$

2) $Annual\ holding\ cost = (Optimal\ Order\ Size / 2) \times Holding\ Cost$

Annual Holding Expense = (34,641 / 2) × 2

Annual Holding Expense = $34,641

3) Orders Each Year = Yearly Demand / Optimal Order Quantity

Orders Each Year = 2,400,000 / 34,641

Orders Each Year = 69.2820646

Orders Each Year = 69 (Approximately)

4) Yearly Transportation Variable Cost = Cost per Unit × Yearly Demand

Yearly Transportation Variable Cost = $0.10 × 2,400,000

Yearly Transportation Variable Cost = $240,000

5) Yearly Clerical Expense = Orders Each Year × Cost Each Order

Yearly Clerical Expense = 69.282 × $500

Yearly Clerical Expense = $34,641

4 0

1 month ago

Trompenaars found that a(n) _____ organizational culture is common in countries such as Turkey, Pakistan, Venezuela, China, Hong

Free_Kalibri [3484]

Answer:

Letter B is the correct option. Family.

Explanation:

Alfons Trompenaars, a prominent Dutch author and consultant in intercultural communication, categorized organizational cultures into four types: family, Eiffel Tower, guided missile, and incubator. Countries like Turkey, Pakistan, Venezuela, China, Hong Kong, and Singapore primarily exhibit family culture.

Family culture is characterized by an organizational landscape that prioritizes power dynamics and hierarchy, featuring a charismatic leader regarded as a nurturing family member by employees who believes in the well-being of their team.

3 0

1 month ago

You take $150 you had kept under your mattress and deposit it in your bank account. Suppose this $150 stays in the banking syste

Nady [3254]

Answer:

The result is $12.

By applying the formula total credit /Money created = Total deposit /Cash reserve ratio

Total deposit = $150

Cash reserve ratio = 12.5%

150/12.5

=12

Consequently, the total money generated in the banking system is $12. It can be concluded that money creation by banks is a mechanism whereby banks accept deposits from clients and provide loans to borrowers after subtracting the cash or reserve ratio.

3 0

11 days ago