If Bank C Splits into Two Separate Institutions at ½

question 8

Multiple Choice

If Bank C splits into two separate institutions at ½ its original size each, what is the new Herfindahl (HHI) Index?

• A)60.
• B)340.
• C)2,538.
• D)2,847.
• E)10,000.

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Definitions:

Net Sales

The amount of sales generated by a company after deductions for returns, allowances for damaged or missing goods, and discounts.

Accounts Receivable

Amounts owed to a business by its customers for goods or services that have been delivered but not yet paid for.

Receivables Turnover Ratio

A financial metric that measures how efficiently a company collects cash from credit customers.

Sales Returns

Goods returned by customers to the seller after the sale has occurred, typically due to defects or dissatisfaction.