QUESTION 28 3 points Save What is the Equity multiplier (EM)? Using EM, explain how increasing the bank capital would have a negative impact on the ROA for equity holders? (3 points) For the toolbar,
Answers
The Equity multiplier (EM) is a financial metric that measures the leverage of a company or institution by comparing its total assets to its total equity. It is calculated by dividing total assets by total equity. Mathematically, EM = Total Assets / Total Equity.
Increasing the bank's capital, which refers to the amount of funds contributed by the bank's owners or shareholders, would have a negative impact on the Return on Assets (ROA) for equity holders when considering the Equity multiplier. This is due to the way EM affects the ROA calculation.
ROA is calculated by dividing the net income of the bank by its total assets. When the bank increases its capital, it also increases its total equity, which in turn increases the Equity multiplier. As the EM increases, the bank's total assets increase at a faster rate than its net income.
With a higher EM, the bank's total assets are amplified, but the net income remains relatively unchanged. Consequently, the ROA for equity holders decreases because the denominator (total assets) of the ROA calculation is increasing at a faster rate compared to the numerator (net income).
In conclusion, increasing the bank's capital would result in a higher Equity multiplier, which negatively impacts the ROA for equity holders. The increased leverage from higher total assets outweighs the relatively unchanged net income, leading to a lower ROA.
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Related Questions
________ involves mutual respect and trust among buyers and sellers, and focuses on creating long-term customers, not a one-time sale.
Answers
Answer:
Relationship selling involves mutual respect and trust among buyers and sellers, and focuses on creating long-term customers, not a one-time sale.
Lisi Crichton operates a variety store. Her brother does custom welding and made some racks to hold videos. Lisi gave her brother $5,000 cash and did not get a bill. A similar rack was on display at a department store for $1,000. You are told to book an expense on the company financial statement for $5000. What will you book the amount for?
Answers
Answer:
$1,000
Explanation:
Fixed assets must be recorded at historic cost or purchase value. Their valuation is not affected by changes in market values, e.g. land might appreciate over time, but its historic cost will be used for accounting purposes.
In this case, Lisi doesn't have a bill to show the price of the rack, and since she paid in cash, she has no way of proving what she actually paid for it. In this case, in order to record the purchase of the rack you must use the fair market value of similar racks.
Imagine if someone could just say that they purchased things at X price but didn't get a bill, soon people would be recording buying pencils at $500 each because they are gorgeous and perfectly crafted.
If all players play their best responses, then the corresponding strategy profile must be a nash equilibrium.
A. True
B. False
Answers
Answer:
False
Explanation:
Nash Equilibrium is when all players maintain their strategy for the entire game, and thus cannot gain a competitive advantage by changing strategies mid-game. If the question was worded "If all players must play their best responses, then the corresponding strategy profile must be a Nash equilibrium."
Find Lindsay Remson's total deposit for two checks of $112.54 and
$453.24 and cash of 3 one-dollar bills, 4 five-dollar bills, 7 ten-dollar
bills, 15 quarters, 12 dimes, 34 nickels, and 64 pennies. Less $10.00
cash received.
Answers
Answer: 649.78
Explanation: addition
mf corporation has an roe of 10% and a plowback ratio of 40%. if the coming year's earnings are expected to be $2 per share, at what price will the stock sell? the market capitalization rate is 14%
Answers
The expected stock price for MF Corporation is $12.00 per share.
To calculate the price at which MF Corporation's stock will sell, we first need to determine the company's expected dividend payout and future earnings growth rate. Since the plowback ratio is 40%, this means that 60% of the earnings will be paid out as dividends.
Dividend payout ratio = 1 - Plowback ratio
= 1 - 0.4
= 0.6 or 60%
Expected dividend per share = Dividend payout ratio x Expected earnings per share
= 0.6 x $2
= $1.20
Next, we need to determine the expected growth rate of earnings. This can be calculated using the plowback ratio and return on equity (ROE) as follows:
Expected earnings growth rate = Plowback ratio x ROE
= 0.4 x 0.1
= 0.04 or 4%
Now that we have the expected dividend payout and earnings growth rate, we can use the dividend discount model to calculate the stock price.
Stock price = Expected dividend per share / (Market capitalization rate - Expected earnings growth rate)
= $1.20 / (0.14 - 0.04)
= $12.00
Therefore, the expected stock price for MF Corporation is $12.00 per share.
It's important to note that the dividend discount model has certain limitations and assumptions, such as the assumption that the growth rate is constant and that dividends will be paid indefinitely. In reality, there may be fluctuations in the growth rate and dividends may not be paid indefinitely.
Additionally, market capitalization rate can also vary depending on market conditions and company specific factors. Therefore, investors should use multiple valuation methods and take into account qualitative factors before making investment decisions.
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As a current or future business owner, entrepreneurs need to be able to assess collateral in order to secure a possible
loan from the bank.
True
Or
False
Answers
Answer:
True
Explanation:
Collateral is an asset used as a guarantee or security for the payment of a loan. It assures the lender that a borrower will pay back the loan.
If an entrepreneur applies for a business loan, the bank will most likely demand collateral. The entrepreneur will need to offer an asset, either property or motor vehicle, that will act as a guarantee for the loan. Should the entrepreneur fail in repayment, the bank can sell the asset to recover their money.
Few, if any, will lend anyone money based on a business idea alone. Many banks will demand a business proposal to be backed with some guarantee to secure funding.
20 points on how globalization is good for the triple bottom line
Answers
Answer:
t common questions I get as the founder and CEO is: Can a start-up delight customers, provide a great work culture, and see exceptional growth metrics? The answer is yes, you absolutely can.
I know this because at Globalization Partners we’ve done it—and part of our mission is to pass that know-how on to our customers. When I founded this company, my goal was to build a high-growth business that would enable anyone to hire employees anywhere, without the red tape traditionally associated with global expansion. But I also wanted to build a company people love— customers, business partners, and employees. Fast forward a few years and I’m happy to report we’ve had rocket-ship growth numbers, 96% of our customers say that they are “very satisfied” or “satisfied” with our services, but perhaps what makes me most proud is we’re also able to regularly win awards for our company culture. We haven’t had to make a trade off, and neither should you.
The secret to balancing this success is what I call the Triple Bottom Line: prioritizing happy customers, happy employees, and happy shareholders.
While a Triple Bottom Line may sound like an obvious formula for growth, it might also feel unrealistic. Its anathema to the typical blitz scaling mantra right now, which is “growth at all costs.” But the reality is, companies who focus only on growth end up underpaying people and treating customers so poorly that growth is ultimately unsustainable.
I wasn’t sure if the Triple Bottom Line would be achievable when I set out to build my business, but I knew I didn’t want to be in business any other way. Now, Globalization Partners is proof that the Triple Bottom Line is an exceptionally good strategy for growth.
Explanation:
define the term business
Answers
Answer:
Business refers to the organized efforts and activities of individuals to produce and sell goods and services for profit.Explanation:
I hope l helped you. Please follow me. ❤❤❤Demand-oriented, cost-oriented, profit-oriented, and competition-oriented are four approaches used to set ______.
Answers
The 4 approaches to set approximate price level includes Demand-oriented, cost-oriented, profit-oriented, and competition-oriented.
In marketing, the determination of the price of a product or services can take different approach which includes:
Demand-oriented: This method attempts to set price at level that intended buyers are willing to pay.Cost-oriented: This method of pricing attempts to set price at the level that will cover the total cost incurred for producing the product.
Profit-oriented: This method of pricing attempts to set price at the level that guarantees the company's profitability
Competition-oriented: This method of pricing attempts to set price while considering competition of other company
Therefore, the four approaches are used to set approximate price level.
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The ________ approach to performance measurement was introduced as a way to evaluate organizational performance from more than just the financial perspective.
Answers
Answer:
c) balanced scorecard
Explanation:
The options for the question we are;
A) market value
B) economic value
C) balanced scorecard
D) financial control
c) balanced scorecard
A balanced scorecard can be regarded as a strategic management performance that is engaged in the improvements as well as identification of internal business functions as well as external outcomes that result from there. It is a tool that helps in returning feedback to an organization. It should be noted that balanced scorecard approach to performance measurement was introduced as a way to evaluate organizational performance from more than just the financial perspective.
If you could be an entrepreneur, what kind of business would you have?
(Take your time please and thank you)
Answers
Answer:
Best low-investment business ideas you can start on the side
Partner with a dropshipper. ...
Design and sell print-on-demand t-shirts. ...
Launch your own book. ...
Create digital products or courses. ...
Sell print-on-demand posters, greeting cards, and prints. ...
Start a charitable business. ...
Sell a service. ...
Create an online fashion boutique.
Why did Constantine establish a new capital of the Roman Empire in Byzantium?
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Answer:
From the year 330 and by order of the Emperor Constantine, the city of Byzantium became the capital of the Roman Empire. The main motivation behind this decision was strategic: the city of Byzantium, later renamed Constantinople, was located in what we know today as Istanbul, Turkey, on the intercontinental passage between Europe and Asia. Thus, this city was right in the middle of the main route that connected the Roman Empire with the cities of the Middle East, India and China, being fundamental for the control of said trade and the exercise of a notable political and economic influence in the region.
help me to answer thi Q! Thanks!
Answers
PLEASE HURRYYYY THIS IS DUE RIGHT NOW 20 POINTS
Please select the word from the list that best fits the definition Fossil fuels are the only cause of global warming. Absolute or Qualified?
Answers
Answer:
absolute
Explanation:
cause oils from mine feilds an certain refreshners cause global warming
Answer:
Absolute
Explanation:
Which is an example of a small business showing social responsibility to individuals within the company?
A. starting an office recycling program
B. developing sustainable business practice
C. donating money to local organizations
D. allowing employees to work from home
Answers
Starting an office recycling program, developing sustainable business practice and donating money to local organizations are examples of a small business showing social responsibility to individuals within the company.
Company have a social responsibility to the communities in which they operate. This includes ensuring that they are good corporate citizens, providing support for local causes and charities, and protecting the environment.
Sustainable business is a term that is often used to describe businesses that are environmentally friendly or that have a positive social impact.
Hence, the correct options are "A, B & C".
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Because economic and competitive environments frequently change, organizations should.
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Due to the fact financial and competitive environments regularly exchange, businesses should increase contingency plans. The management characteristic concerned with waiting for destiny developments and figuring out the quality strategies to gain an agency's desires and goals is called planning.
A competitive environment is a marketplace structure in which companies selling comparable merchandise use varying distribution channels and pricing techniques to court shoppers.
The most obvious examples of factors of a competitive environment are an enterprise's direct competition, however, other examples are regulatory assets, indirect competitors, and social and technological adjustments.
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Some companies positively harness the power of rumors to multiple choice instill false confidence in investors. replace formal communications. create buzz about a new product launch. deflect interpersonal conflicts. achieve the boundaryless organization.
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Some companies positively harness the power of rumors to create buzz about a new product launch. Option C. This is further explained below.
What are rumors?Generally, rumor is simply defined as a tale or report that is now doing the rounds but whose veracity is questionable.
In conclusion, In certain cases, corporations use the power of rumors to promote a new product introduction.
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The difference between the yield on a non-callable us treasury bond and the yield on a non-callable corporate bond with identical maturities is known as ______.
Answers
The difference between the yield on a non-callable US Treasury bond and the yield on a non-callable corporate bond with identical maturities is known as the credit spread.
The credit spread is the additional yield that investors demand to hold a corporate bond instead of a risk-free US Treasury bond. This additional yield compensates investors for the credit risk of the corporate bond issuer. Corporate bonds carry a higher credit risk compared to US Treasury bonds because the financial health of the issuing company may deteriorate, which could lead to a default on the bond.
Therefore, corporate bonds require a higher yield to attract investors. Credit spreads are typically wider during times of economic uncertainty or when corporate bond issuers face financial distress. Investors closely monitor credit spreads as they are an important indicator of market sentiment towards corporate bond issuers and can signal potential changes in credit risk or market conditions.
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According to the environment industry organization for model cell 2 represents which of these environments
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It should be noted that in the environment industry organization model, cell 2 simply means B. Complex stable environment.
The business or industry environment simply means the environment where an organization operates. It includes the customers, partners, suppliers, etc.
In the environment industry organization model, cell 2 simply means the complex stable environment.
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Suppose again that furniture production is more capital-intensive relative to clothing production, which is more labor-intensive. If the relative price of furniture to clothing rises, this will.
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If the relative price of furniture to clothing rise, this will simply raise the income of capital owners when furniture production is more capital intensive relative to clothing production.
Let’s understand what is capital-intensive and what is labour -intensive-
Capital intensive: When the production of a particular good or service require more of capital asset such as land, machinery, equipment rather than physical labour it is said to be using capital intensive technique. For example: production of a laptop requires more capital-intensive technique.
Labour- Intensive: When the production of some good and services require more use of physical labour rather than capital asset, it is said to be using labour-intensive technique. For example: production of a building requires more labour-intensive technique.
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PLEASEE! unit test in progress!!
A tax accounting software company is trying to help potential customers understand how other tax firms are already using certain platforms to complete their work. What type of primary research might they use to BEST tell that story?
a. Websites about tax firms’ busy season
b. Account textbooks
c.an interview with a single client
d. 10 case studies of existing clients
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Answer:
It is D
Explanation:
.
What is the name of the legal documents that specify arrangements between partners?
A. General Partnership
B. Fartnership Contract
C. Partnership Agreement
D. Articles of Partnership
Answers
Answer:
C. Partnership Agreement
Explanation:
It's the legal document that dictates the way a business is run and details the relationship between each partner.
The trade off theory optimal capital structure is achieved when marginal tax savings equals the marginal increased bankruptcy costs from the additional unit of debt. True or False?
Answers
It is true that the trade-off theory optimal capital structure is achieved when marginal tax savings equals the marginally increased bankruptcy costs from the additional unit of debt.
What is trade-off theory?
The trade-off theory of optimal capital structure suggests that there is an optimal level of debt for a company, where the marginal tax savings from the additional debt equals the marginally increased bankruptcy costs. This means that companies must balance the benefits of using debt, such as tax deductions, with the costs, such as the risk of bankruptcy. Ultimately, the optimal capital structure is the one that maximizes the company's value.
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Three roads lead into a stadium's parking areas. Each road has four lanes (two in each direction) with a capacity of 1,000 vehicles/lane/hour. If 10,000 vehicles are expected for a game, how long will it take for all of them to enter the parking areas?
Answers
Answer:
Option A
Explanation:
The complete question is
Three roads lead into a stadium's parking areas. Each road has four lanes (two in each direction) with a capacity of 1,000 vehicles/lane/hour. If 10,000 vehicles are expected for a game, how long will it take for all of them to enter the parking areas?
a) 2 hours
b) 1 hour
c) 1 hour and 40 minutes
d) 90 minutes
Solution
There are four lanes.
Capacity of one lane is equal to 1,000 vehicles/lane/hour.
Let us say that each lane will provide access to equal number of vehicles
Thus, each lane will allow 10,000/4 = 2500 vehicles per hour
Time taken by 2500 vehicles on road to reach parking is equal to 2.5 hours.
The nearest answer to this option A i.e two hours
Ram thinks of a number if he adds 3 to 5 times the number he gets 38. what is the number?
Answers
Answer:
This answer is 7
Explanation:
Try using this to show the working
(5x)+3=38
True/False. expectations for growth in the leisure-service industry following world war ii were low.
Answers
The statement "Expectations for growth in the leisure-service industry following World War II were low" is false because factors such as increased disposable income, more leisure time, and advances in transportation, which made travel more accessible and affordable for many people.
Expectations for growth in the leisure-service industry following World War II were high, not low. The post-war period saw significant economic growth, increased disposable income, and a rise in consumer spending. This led to a surge in demand for leisure activities and services as people sought entertainment, recreation, and relaxation after the wartime hardships.
The leisure-service industry experienced substantial expansion during this time, with the development of amusement parks, movie theaters, hotels, resorts, restaurants, and various recreational facilities. The increased prosperity and desire for leisure activities fueled the growth of this industry, making expectations for growth high, not low, following World War II.
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MANAGEMENT AT WORK After he finishes celebrating with his team, the general manager of the World Series champions is going to do a SWOT analysis to determine his strategy for the upcoming season. Help him figure out how he should classify the following information. Which of the following factors should be classified as a threat for the team? A number of free-agent outfielders are available to sign by the team this year. Many of them have better statistics than the current team members. Several of the team's players have had extraordinary seasons, but now some of them are not playing as well as they did when they were younger. The team's starting pitchers are exceptionally strong and young and can potentially keep the current champions at the top of the league for years to come. During the off-season, another team in the league signed players whose skills matched or exceeded those of the current champions. Given all of the factors listed in the preceding question, what strategy would make the most sense for the championship team as it prepares for the upcoming season? Assume that as the players age, they will continue to produce at their current levels. Keep the team intact and do not hire any new players because the team was good enough to win the World Series. Sign a free-agent outfielder to bolster the current roster and sign the young pitchers to long-term contracts. Trade the team's younger pitchers to another team for minor-league prospects who aren't ready for the major league.
Answers
Several of the team's players have had extraordinary seasons, but now some of them are not playing as well as they did when they were younger as factors should be classified as a threat for the team. Thus, option (b) is correct.
What is team?The term team refers to the collection of people with in a one aim. A team members are achieve goal with help of all members. The team is create mostly in sports and management. The all team members are achieve common goal. There are different types of team such as operational team, virtual team, management team, and event team.
According to the SWOT analysis to determine his strategy for the upcoming season. It was the treated on the team as the team's players have had exceptional seasons as not the playing.
Sign a free-agent outfielder to bolster up the actual roster and sign the young pitchers to long-term contracts is the scheme would make the most sense for the championship team as it prepares for the upcoming season.
As a result, the significance of the team are the aforementioned.
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the management's preparation of activities to be carried out by the organization is termed
a) planning
b) delegating
c) organising
d) motivating
Answers
Answer:
a) planning
Explanation:
Planning is a major function of management. It entails thinking ahead or visualizing how to execute events or processes before their time is due. Planning is actualizing events in one's mind to achieve desires results before implementing them on the ground. It is going ahead of time and making preparations for future events.
Planning makes processes and events go smoothly. It makes sure all necessities are availed on time and all possible hitches have been addressed.
Ease of formation, flexibility, and diversity of management are advantages of the _____ form of business ownership.
Answers
Features such as ease of formation, flexibility, and diversity of management are advantages of the partnership form of business ownership.
What is a partnership ownership?It refers to a formal arrangement by two or more parties to manage and operate a business and share its profits. In other words, it is essentially the arrangement between two or more people to oversee business operations and share its profits and liabilities.
Most time, in most partnership business, all the partners share liabilities and profits equally, while in others, partners may have limited liability. However, there is a "silent partner," in which one party is not involved in the day-to-day operations of the business.
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downsizing is the loss of employees who voluntarily choose to leave a company.
Answers
The number "150" is not directly related to downsizing or employees. The statement "downsizing is the loss of employees who voluntarily choose to leave a company" is incorrect. Downsizing refers to the process of reducing the size of a company, which often involves the loss of employees due to layoffs or other forms of involuntary termination.
This could result from various reasons, like loss of business, changes in technology, and economic downturns. In some cases, downsizing can be temporary, while in others it could be permanent.
It's important to note that downsizing is different from rightsizing, which refers to the process of adjusting the size of a company to meet its current needs and goals. Rightsizing can involve reducing staff in some areas while hiring in others to maintain or improve productivity.
The number "150" is not directly related to downsizing or employees.
Please provide additional context or information if you have any further questions or concerns.
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