Explanation:
An economics degree gives you a high level of mathematical and statistical skills and the ability to apply economic principles and models to problems in business, finance and the public sector. ... numeracy - handling complex data and techniques of mathematical and statistical analysis. problem-solving. analytical skills
Answer:
(B) a cash cow
Explanation:
Based on the information provided within the question it can be said that in this scenario AI Rubber would be considered a cash cow. This term refers to a business and/or product that generates a steady revenue or profit for the owning company or individual. Since AI Rubber has a 45% market share we can say that they are the cash cow of the corporation.
Answer:
Q1) a. 6.60%
Q2) c. retaining a higher percentage of earning will result in a higher growth rate.
Explanation:
Q1.)
Use dividend discount model (DDM) to solve for the growth rate;
g = r- (D1/P0)
whereby;
g = dividend growth rate
r = required rate of return = 11.40% or 0.1140 as a decimal
D1 = next year's dividend = $1.14
P0 = Current stock price = $23.75
g = 0.1140 - (1.14/23.75)
g = 0.1140 - 0.048
g = 0.066 or 6.6%
Therefore, the growth rate is 6.60%, making choice A correct.
Q2.)
c. Retained earning is the proportion of total net profit that a company reinvests back into the business for the purpose of investing in other potentially profitable projects.The returns from these projects would increase the value of the company at a faster rate if a higher percentage e.g 90% is retained. On the other hand, if the company pays a larger portion of its retained earnings e.g 70% as dividends, it will experience a slower growth rate making choice C correct.
Answer:
increase in government purchases
Explanation:
If there is a contraction in the economy, the government should conduct expansionary policies to increase money supply.
Discretionary fiscal policies are deliberate steps taken by the government to stimulate the economy in order to cause the economy to move to full employment and price stability more quickly than it might otherwise.
Discretionary fiscal policies can either be expansionary or contractionary
Expansionary fiscal policy is when the government increases the money supply in the economy either by increasing spending or cutting taxes.
Contractionary fiscal policies is when the government reduces the money supply in the economy either by reducing spending or increasing taxes
Answer:
a. Issuer
The entity that promises to make payments on the bond is the entity that issued the bond and they are therefore known as the Bond Issuer.
1. c. Corporate bonds
When a private company issues bonds, these bonds are known as Corporate Bonds. They often offer the most return of the 3 options as they are the riskiest.
2. b. Walmart
Walmart are the issuers of the bond. The rest are Lead Managers who are often Investment banks who help in the facilitation of Bond Issuance.
3. a. When interest rates increase, the prices of U.S. Treasuries decline.
Bond prices and interest rates have an inverse relationship. This is because of the fixed interest payment that bonds offer which can either be attractive or not to investors depending on market rates. For instance, when interest rates are high, other investment vehicles will offer more returns than bonds and so people will divest from them which will reduce their price.
4. c. Treasury bonds
US Treasury and indeed Government bonds on average are the least riskiest of the options listed as they are backed by the full weight and faith of the central government and all its assets. If all else fails, the Central Government could simply print more money to pay off the bonds.
