amount of of deposits in the banking system increase by $100‚000 ( $10‚000 x 10)‚ because the reserve ratio is of 10% which mean the money multiplier is 1/R= 1/0.10 = 10. ii As bank deposits are part of the money supply‚ so John deposited $10‚000 but the bank is required to keep a ratio of 10% or $10‚000. Taking in consideration i above by using the money multiplier the bank is allowed to make a maximum of $90‚000 or 10 x $$10‚000= $100‚000 - $10‚000= $90‚000 Therefore‚ the money supply increases
Premium Inflation Fractional-reserve banking Money
the fear of losing control to the firm and a huge interest expense payment from long term debt that is implied by traditional buy-out and leveraged recapitalizations. Fair market value of the firm: Rm: Prime rate = 9% rf: risk free rate = 7.2% Average Unleveraged beta bu = = .839 Assume that growth rate : g = 2%‚ RPm = 4% ‚ tax rate is 35% Unlevered cost of equity rsu = rf + RPm (bu) = 7.2% + 4%(.839) = 10.56% Operating cash flow using base case projections: 1995 1996 1997 1998 1999
Premium Cash flow Expense Finance
Chapter 20- List the functions of the lymphatic vessels. The function of the lymphatic vessels‚ or lymphatic’s‚ is an elaborate system of drainage vessels that collect the excess protein-containing interstitial fluid and return it to the bloodstream. Describe the structure and distribution of lymphatic vessels. The lymphatic collecting vessels have the same three tunics as veins‚ but the collecting vessels are thinner walled‚ have more internal valves‚ and anastomose more. The lymphatic
Premium Lymphatic system
Discussion Questions • What is the capital market? How is the primary market different from the secondary market? In your opinion‚ are these markets efficient? Why? • What are three primary roles of the U.S. Securities and Exchange Commission (SEC)? How does the Sarbanes-Oxley Act of 2002 augment the SEC’s role in managing financial governance? Do you think businesses became more ethical after Sarbanes-Oxley was passed? Provide examples to support your answer. • What ratios measure a corporation’s
Premium Net present value Investment Time value of money
In my opinion all diseases will not be eradicated in 20 years by vaccines and antibiotics. There are too many diseases to get eradicate. There are also diseases that are very hard to kill or eradicate like different cancers. The diseases can also mutate and evolve to be immune to some vaccines or antibiotics. I think that is I think it is impossible to eradicate all diseases in twenty years because there are just too many diseases and it would take time to make the vaccines and to eradicate the diseases
Premium Infectious disease Medicine Disease
Pioneer 10 was the first attempt by the National Aeronautics and Space Administration (NASA) to send a mission into space that would surpass the distance what had previously been explored. In these missions‚ the spacecraft had made it as far as Mars‚ to understand the planet and atmosphere of Earth’s neighbor. Yet‚ Pioneer 10 had three primary goals: make in situ measurements of Jupiter‚ study the asteroid belt‚ and investigate the planetary medium. The first‚ to make in situ measurements of Jupiter
Premium Space exploration NASA International Space Station
government officials are supposed to obey the rules in the Constitution of Cambodia which protect the rights of citizens to own land even if they live in an urban or rural area but the officials are violating the human rights by threatening and using violence to force citizens off their land. This has become a serious issue for families in rural and urban areas because they have to relocate without any of their belongings. The major cause of land eviction are by the powerful business companies
Premium Torture Human rights Khmer Rouge
The modified internal rate of return assumes that inflow are reinvested at 80 percent of the internal rate of return This is a correct answer It is the difference in the reinvestment assumptions that can be significant in determining when to use the present value or internal rate of return methods. Under the net present value method‚ cash flows are assumed to be reinvested at the firm ’s weighted average cost of capital Points earned on this question: 1 Question 2 (Worth 1 points)
Premium Net present value Investment Capital budgeting
Low Interest Rates Long Term Effect "The prolonged low-interest rate environment is transforming the banking industry from savings and loans to service and loans‚" said Dan Geller‚ executive vice president of research firm Market Rates Insight in San Anselmo‚ Calif. (Fitzpatrick) Consumers may think that the continued low interest rates are a profound thing‚ but banks on the other hand think much differently. Consumers are refinancing their houses at rates as low as 2.875%‚ while big banks like
Premium Bank Mortgage Interest rate
20 – 70 – 10 vs. A – B – C Week 4 Assignment 1 Discuss the strengths‚ pitfalls‚ and underlying assumptions of differentiating employees in the manner suggested in Jack Welch’s 20-70-10 framework. Jack Welch has created a framework for managing his talent‚ something that is also referred to as a vitality curve. Jack’s is broken up into three separate categories‚ 20% that consists of the top performers in an organization‚ 70% that consists of average performers but makes up the most of any organization
Premium Jack Welch Cellular differentiation