When the Fed increases the money supply to lower the federal funds rate, will the cost of capital to U.S. companies be reduced? Explain how the segmented markets theory regarding the term structure of interest rates (as explained in Chapter 3) could influence the degree to which the Fed’s monetary policy affects long-term interest rates.

Answers

Answer 1

Answer:

The federal funds rate is basically is used to control the supply of funds available in the economy. If the federal funds rate is increase by the Fed, its becomes expensive to borrow in the short term medium. Thus, the federal funds rate lower down the supply of available money which increase the short term interest rate.


Related Questions

Dennisport Corporation has an acid-test ratio of 1.7. It has current liabilities of $56,000 and noncurrent assets of $87,000. The corporation's current assets consist of cash, marketable securities, accounts receivable, prepaid expenses, and inventory. Of Dennis Port current ratio is 2.3, its inventory and prepaid expenses must be:

Answers

Answer: $33600

Explanation:

Current liabilities = $56,000

Noncurrent assets = $87,000

First and foremost, we should note that:

Acid-test ratio = Current Assets / Current liabilities

Therefore,

1.7 = Current Assets / $56,000

Current assets = $56000 × 1.7

= $95,200

Also,

Current ratio = Current Assets / Current liabilities

Therefore,

2.3 = Current Assets / $56,000

Current assets = $56,000 × 2.3

= $128,800

Then, the inventory and prepaid expenses will be:

= $128,800 - $95,200

= $33,600

Suppose the money supply in Country X is $44,000 and the nominal GDP is $88,000. Calculate the velocity of money. Round your answer to the nearest hundredth.

Answers

Answer:

Velocity of money = 2 unit

Explanation:

Given:

Supply in country X = $44,000

Nominal GDP = $88,000

Find:

Velocity of money

Computation:

Velocity of money = Nominal GDP / Money supply in country

Velocity of money = $88,000 / $44,000

Velocity of money = 2 unit

Sargent Corporation bought equipment on January 1, 2018. The equipment cost $360,000 and had an expected salvage value of $60,000. The life of the equipment was estimated to be 6 years. Assuming straight-line deprecation, the book value of the equipment at the beginning of the third year would be

Answers

Answer:

Book value= $260,000

Explanation:

First, we need to calculate the annual depreciation using the following formula:

Annual depreciation= (original cost - salvage value)/estimated life (years)

Annual depreciation= (360,000 - 60,000) / 6

Annual depreciation= $50,000

Now, at the beginning of the third year, the asset accumulated depreciation two times.

Accumulated depreciation= 50,000*2 = 100,000

Finally, the book value:

Book value= purchase price - accumulated depreciation

Book value= 360,000 - 100,000

Book value= $260,000

How does the use of a learning management system better link training to business strategy and goals?

Answers

Answer:

The utilization of such a learning platform ties preparation to company strategy including priorities throughout the following area.  

Explanation:

Evaluating the knowledge gap including overseeing the preparation to address the distance to achieve business objectives. Recognizing as well as understanding the priorities of organizational performance as well as preparation. Monitoring the success of education to accomplish the objectives of training. Coordinate the learning program to meet both corporate objectives and specific objectives.

The Macaulay convexity of a single cash flow is 64 at an annual effective interest rate of 10%. Calculate the modified duration of this single cash flow.
A 7.3
B 7.6
C 8.0
D 8.4
E. 8.8

Answers

Answer:

A 7.3

Explanation:

Macaulay Convexity = 64, as about a single cash flow

Since it is a single cash flows, convexity is square the Macaulay duration of the bond.

Convexity = √Macaulay duration.

So, Macaulay duration = Convexity^(1/2)

Macaulay duration = Convexity^(0.5)

Macaulay duration = 64^0.5

Macaulay duration = 8

So, the Macaulay duration = 8 years

Now, Modified duration = Macaulay duration/(1+yield)

Modified duration = 8/(1+0.1)

Modified duration = 8/1.1

Modified duration = 7.27273

Modified duration = 7.3 years

Coronado Industries has $16000 of ending finished goods inventory as of December 31, 2013. If beginning finished goods inventory was $11000 and cost of goods sold was $46000, how much would Coronado report for cost of goods manufactured

Answers

Answer:

$51,000

Explanation:

Coronado industries has $16,000 of ending finished goods

The beginning finished goods inventory is $11,000

Cost of goods sold is $46,000

Therefore the cost of goods manufactured for Corona report can be calculated as follows

=$46,000+($16,000-$11,000)

= $46,000+$5,000

= $51,000

Therefore the cost of goods manufactured is $51,000

Give the definition of ethics.​

Answers

Answer:

Ethics or moral philosophy is a branch of philosophy that "involves systematizing, defending, and recommending concepts of right and wrong behavior". The field of ethics, along with aesthetics, concerns matters of value, and thus comprises the branch of philosophy called axiology.

Explanation:

A company has net income of $225,000 and declares and pays dividends in the amount of $75,000. What is the net impact on retained earnings

Answers

Answer: Increase of $150,000

Explanation:

Net income = $225,000

Dividend = $75000

Retained earnings will be:

= Net income - Dividend

= $225,000 - $75,000

= $150,000

Based on the calculation above, the net impact on retained earnings is an increase of $150,000.

What word is out of place? (Karlins text)
boat
O duck
O dog
O child

Answers

I think it's duck but i'm not 100% sure

Microsoft is weighing setting up an R&D facility in India to develop new software applications. Should it staff the new facility with Microsoft employees? Indian employees? Or should it subcontract with an Indian firm? Explain your answer and some of the potential challenges in implementing it.

Answers

Answer:

staff the new facility with Indian employees

Explanation:

This would be a good option considering the fact that this would be a new market environment they've not operated in before. By staffing the new facility with natives of the country who understand the Indian business environment better, such as

the ideal management styleunique business communication stylethe unique challenges to overcome.

Additionally, Microsoft Corporation would be better positioned to carry out the needed research and development activities if conducts periodic training programs using expatriates.

Chang Industries has 2,800 defective units of product that have already cost $14.80 each to produce. A salvage company will purchase the defective units as they are for $5.80 each. Chang's production manager reports that the defects can be corrected for $5.20 per unit, enabling them to be sold at their regular market price of $22.60. The Incremental Income or loss on reworking the units is:_______.A. $32,480 loss.B. $32,480 income.C. $14,560 loss.D. $47,040 income.E. $48,720 income.

Answers

Answer:

A. $32,480

Explanation:

Calculation for The Incremental Income or loss on reworking the units

First step is to calculate the incremental revenue from reworking

Incremental revenue from reworking= ($22.60- $5.80)

Incremental revenue from reworking (= $16.80

Second step is to calculate net benefit per unit to rework

Net benefit per unit to rework= 16.80- 5.20

Net benefit per unit to rework = $11.60

Last step is to calculate the incremental income from reworking

Incremental income from reworking= ($11.60* 2,800 units)

Incremental income from reworking = $32,480

Therefore The Incremental Income or loss on reworking the units is:$32,480

At the most recent staff meeting of Hyperactive Media Sales, the general manager gave you instructions to make the laptops used by the salespeople as secure as possible. You have decided to implement a new advanced sign-in process for the users. How will you explain to the general manager how using new authentication methods makes the laptops more secure

Answers

Answer:

New authentication methods such as the picture password, 2 factor authentication method, biometric identification, etc ensure that authentication credentials are safe and cannot be stolen and used from another laptop.

New authentication methods gives tougher walls of security which cannot be easily broken into thereby leaving the system protected and secure.

Due to increasing activities of cyber criminals, new and more sophisticated authentication processes are being developed giving laptops and computer systems better security as attackers are unable to exploit passwords.

Webster Corporation's monthly projected general and administrative expenses include $4,100 administrative salaries, $1,500 of other cash administrative expenses, $2,300 of depreciation expense on the administrative equipment, and .5% monthly interest on an outstanding bank loan of $29,000. Compute the total budgeted general and administrative expenses budget per month.

Answers

Answer:

$7,900

Explanation:

Computation for the total budgeted general and administrative expenses budget per month.

Monthly projected general and administrative expenses :

Arministrative salaries $4,100

Other cash administrative expenses $1,500

Depreciation expense on the administrative Equipment $2,300

Total budgeted general and administrative expenses budget per month $7,900

($4,100+$1,500+$2,300)

Therefore the total budgeted general and administrative expenses budget per month will be $7,900

Flyer Company sells a product in a competitive marketplace. Market analysis indicates that its product would probably sell at $48 per unit. Flyer management desires a 12.5% profit margin on sales. Flyer's current full cost for the product is $44 per unit.
A. What is the desired profit per unit?
B. In order to meet the new target cost, how much will the company have to cut costs per unit, if any?
C. What is the target cost of the company's product?
D. If the company cannot cut costs any lower than they already are, what would the profit margin on sales be to meet the market selling price?

Answers

Market selling price = $48 per unit

Cost price = $44

Profit = 48 - 44 = $4

Profit margin = profit/selling price x 100 4/48 x 100 = 8.333%

To obtain a 12.5% profit margin the costs would have to be cut to $42 or the selling price would have to rise to $50.29

Profit margin = profit/selling price

= (selling price - cost price)/(selling price)

12.5% = 6 / 48

= 48 - 42 / 48

= 0.125 12.5% =

6.29 / 50.29 = 50.29 - 44 / 50.29 = 0.12507

The following information is available for the Silver Company for the 3 months ended March 31, year 2. Merchandise inventory, January 1, year 2 $900,000 Purchases 3,400,000 Freight-in 200,000 Sales 4,800,000 The gross margin recorded was 25% of sales. What should be the merchandise inventory at March 31, year 2

Answers

Answer:

$900,000

Explanation:

The computation of the ending merchandise inventory is shown below:

= Cost of goods available for sale - Cost of goods sold

= Beginning inventory + Purchase made + direct expenses

= $900,000 + $3,400,000 + $200,000

= $4,500,000

And, the cost of goods sold is

= Sales - gross profit

= $4,800,000 - (25% of $4,800,000)

= $3,600,000

Now the ending merchandise inventory is

= $4,500,000 - $3,600,000

= $900,000

Variance analysis is important to the management because:_____.
A. It helps management determine the reasons that actual costs varied from budgeted costs.
B. It helps management determine which department operated most efficiently.
C. It helps management determine the bottleneck of the production line.
D. All of the answers are correct.

Answers

Answer:

D. All of the answers are correct.

Explanation:

Given that Variance Analysis is a form of measuring and controlling methods used by a business management team to maintain and monitor the firm's planned cost and sales with the eventual outcome of cost spent and sales generated.

To achieve this, the process helps in determining the disparity between the actual costs of budgeted costs.

It also helps them to know which department is more productive and

It also helps to discover where the problems or difficulties exist in the production process

Hence, in this case, the correct answer is option D, All of the above. Because the option A to C satisfies the answer.

3. Activities that help an organization to influence an target market is called....

Answers

Activities that help an organization influence a target market are called marketing strategies.

         It is not the only job of a company to produce goods and services. They must also find out their probable buyers and promote their goods and services to the target market.

        For this promotion, a marketing strategy is very much required. A marketing strategy refers to the process of understanding the group of buyers who would be interested in the product and then promoting it to them through commercials, newspaper advertisements, and free merchandise.

         In the world of high monopolistic competition, companies spend millions only on these marketing strategies to get a hold of their customers and make a name for the brand in the market.

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Explain why in a fixed-rate mortgage, the amount of the mortgage payment applied to interest declines over time, while the amount applied to the repayment of principal increases.

Answers

Answer:

In fixed rate mortgage, the amount applied to the repayment of principal increases as the payment involves lower proportion of principal amount and higher proportion of interest, while the payment made against mortgage being applied to interest decrease over time.

With maturing mortgage, the interest portion will decrease and the portion of principle underlying the payment will increase. The calculation of the interest charged on the mortgage is made of the present mortgage balance that remains outstanding which decrease with increase in the repayment of the principal. Hence, it is ascertained that the smaller the principal underlying mortgage is, the lesser will be the interest charged underlying the mortgage.

Patek Phillippe is a prestigious brand of watch that is sold as a luxury product. It has a reputation based on quality and attention to detail. When the company introduces new timepieces, it can count on an existing, well-established market for its new products due to _______. a. perceptual generalization b. stimulus generalization c. selective distortion d. stimulus discrimination

Answers

Answer:

b. stimulus generalization

Explanation:

This reaction from the overall market population is due to stimulus generalization. Since potential customers that have been in the market have already seen the products that Patek Phillippe has already introduced and saw them as high-end luxury products, then the market automatically places any future product that Patek Phillippe releases as in the same category. They do this without doing any research or analyzing the product, instead, they solely categorize new products as luxury due to Patek Phillipe's brand.

Addison Corporation is considering the purchase of equipment that would increase sales revenues by $250,000 per year and cash operating expenses by $100,000 per year. The equipment would cost $400,000 and have a 5-year life with no salvage value. The simple rate of return on the investment is closest to ________.

Answers

Answer:

17.5%

Explanation:

Calculation for The simple rate of return on the investment

First step is to calculate the Depreciation

Depreciation =$400,000/5 years

Depreciation = $ 80,000

Second step is to calculate the annual incremental net operating income

Sales Revenue $250,000

Less Cash Operating Expenses ($100,000)

Less Depreciation ($80,000)

Annual incremental net operating income $70,000

($250,000-$100,000-$80,000)

Last step is to calculate the simple rate of return on the investment using this formula

Simple rate of return=Annual incremental net operating income/Initial investment

Let plug in the formula

Simple rate of return=$70,000/$400,000

Simple rate of return=0.175*100

Simple rate of return=17.5%

The simple rate of return on the investment is closest to 17.5%

Willis Company made a $280,000 investment in new machinery. Assuming the company's margin is 7%, what income will be earned if the investment generates $570,000 in additional sales

Answers

Answer:

the income earned is $39,900

Explanation:

The computation of the income earned is shown below:

As we know that

Margin (%) = Income earned ÷ Sales revenue

Therefore,

Income earned = Additional sales  Margin percentage

= $570,000 × 7%

= $39,900

hence, the income earned is $39,900

We simply applied the above formula so that the correct value could come

And, the same is to be considered  

One year ago, you bought shares of Aaon, Inc at $36.48 a share. You received a dividend of $1.62 per share last month and sold the stock today for $41.18 a share. What is the capital gains yield on this investment?
a) 11.41%
b) 15.62%
c) 4.44%
d) 12.88%

Answers

Answer: 12.88%

Explanation:

The following information can.be inferred from the question:

Purchase price of share = $36.48

Dividend = $1.62

Selling price = $41.18

Capital gain = $41.18 - $36.48 = $4.70

Capital gain yield:

= Capital gain / Purchase price × 100

= (4.70 / 36.48) × 100

= 0.1288

= 12.88%

7) In the cause-and-effect modeling, internal metrics, such as employee satisfaction,productivity, and turnover are considered to be ________ measures.

Answers

Answer:

Leading

Explanation:

The internal metrics like satisfaction of the employees would be considered as leading measures as it is very difficult to identify but easy to correct it. When the internal metrics such as employee satisfaction, turnover, productivity is to be considered than it is difficult to determine and access it but it can easily impact and changed as per the need.

Therefore the given situation represent the leading measures

Where can you find TCS process for Business Continuity Management?

Answers

The TCS process for business continuity management is handled by Head of Corporate Security for Asia, who manages fraud risk and information security.

A business is defined as an organization or enterprising entity engaged in business, business, or professional sports. Businesses may be for-earnings entities or non-income organizations. Enterprise sorts variety from constrained liability corporations to sole proprietorships, organizations, and partnerships.

Agencies assist society first through the distribution of goods and services which might be vital for survival. Moreover, they invent employment possibilities that help individuals inside the society earn an profits to have the funds for their desires.

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Presented below is information available for Crane Company.
Current Assets
Cash $ 3500
Short-term investments 50000
Accounts receivable 56000
Inventory 80000
Prepaid expenses 25000
Total current assets $ 214500
Total current liabilities are $73000.
The acid-test ratio for Crane is:__________

Answers

Answer:

the acid-test ratio is 1.5 times

Explanation:

The computation of the acid-test ratio is as follows:

Acid test Ratio = Quick assets ÷ current liabilities

where,

Quick Assets is

= Cash + short tern investments + Account receivable

= $3,500 + $50,000 + $56,000

= $109,500

And, the current liabilities is $73,000

So, the acid-test ratio is

= $109,500 ÷ $73,000

= 1.5 times

Hence, the acid-test ratio is 1.5 times

What do you understand by the term stakeholder?

Answers

Explanation:

stakeholder is a party that has an interest in a company and can either affect or be affected by the business. The primary stakeholders in a typical corporation are its investors, employees, customers, and suppliers, i hope this answer your question.

Good faith in collective bargaining between a union and an employer does not include:_____.
a. being willing to compromise.
b. negotiating with the belief that an agreement is possible.
c. bargaining with the authority to enter into an agreement.
d. rejecting a proposal without offering a counterproposal.

Answers

Answer:

Good faith in collective bargaining between a union and an employer does not include:_____.

d. rejecting a proposal without offering a counterproposal.

Explanation:

Good faith bargaining involves a negotiation in which the employer and the union work amicably to achieve a reasonable agreement because they both have positive attitudes for positive outcomes.  Therefore, for employers and workers’ unions to bargain in good faith always, they need to meet at reasonable intervals to reach agreements with respect to wages, hours, and others employment terms and conditions.  Whenever a stalemate occurs, because unions and employers cannot agree without rancor, the unions may file unfair labor practice charges, wherein they allege that employers are not bargaining in good faith.

Through the capital budgeting process, financial managers will decide which ___________ the organization will fund.

Answers

Answer: project or investments

Explanation:

Capital budgeting is the process tbat us used by a business when the projects or investments that a particular business wants to undertake are critically looked into and the b at one is chosen.

Through the capital budgeting process, financial managers will decide which project or investments the organization will fund.

An example of a public want is a family wanting a new car.
O True
O False

Answers

Answer: False

Explanation:

Pelcher Company maintains a $480 petty cash fundOn January 31, the fund is replenishedThe accumulated receipts on that date represent $126 for office supplies172 for merchandise inventory, and for miscellaneous expensesThere is a cash overage of 6The journal entry to replenish the fund on January

Answers

Answer:

110$ is the answer of this question

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