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3 years ago

Which is a tool used by the federal reserve in the conduct of monetary policy?

1 answer:

8 0

There are three tools to achieve its monetary policy goals: the discount rate, reserve requirements, and open market operations

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Taunton's is an all-equity firm that has 152,000 shares of stock outstanding. The CFO is considering borrowing $245,000 at 6 per

dezoksy [38]

Answer:

The value of the firm is $1,773,333

Explanation:

Calculation of Value of each share

Amount borrowed (A) $245,000

No. of shares repurchased (B) 21,000

Value for each share (C) $11.67

No. of shares outstanding after repurchase(A) 131,000

(152,000 - 21,000)

Value for each share(B) $11.67

Equity value after repurchase(A*B) $1,528,333

Add: Amount borrowed $245,000

Firm value after this transaction $1,773,333

7 0

3 years ago

A _____ consists of senior managers representing the business and information technology organizations—to provide guidance and s

34kurt

Answer:

b. project steering team

Explanation:

Project steering team -

It refers to the member of an organisation or company , who helps to support and guide the project , is referred to as the project steering team .

The team is important for the project success .

These are basically an advisory body of the company , in matters related to project management concerns , marketing strategies , company policy , new endeavors and budget .

Hence , from the given information of the question,

The correct term is project steering team .

5 0

4 years ago

If the current dividend (D0) is $3.00 and the growth rate is 6%. How much will the dividend be at Time 5?

katen-ka-za [31]

The dividend will be $4.015

Explanation:

The given data is: Initial dividend given is = $3 and growth rate given is = 6%

the following formula is used in order to calculate the dividend

dividend at time 5 = d0 multiply with (1+growth rate) power 5

= $3.00 multiply with (1+0.06) power 5

=>$3.00 multiply (1.33822558)

=>$4.015 (rounded to two decimals).

Note : The dividend is the amount that is paid by the company to its shareholders. The amount of dividend may vary from year to year depending upon the profitability level of the company that it earned during the year.

5 0

3 years ago

Judy's Boutique just paid an annual dividend of $3.73 on its common stock. The firm increases its dividend by 3.40 percent annua

Talja [164]

Answer:

cost of equity = 12.16 %

Explanation:

given data

annual dividend of $3.73

increases dividend = 3.40 percent annually

stock price = $43.96 per share

to find out

What is the company's cost of equity

solution

we will use here Gordon model for compute company's cost of equity that is

market value = $\frac{dividend* ( 1+growth\ rate)}{cost\ of\ equity - Growth\ rate}$ ........................1

put here value we get

43.96 = $\frac{3.73* ( 1+0.034)}{cost\ of\ equity - 0.034}$

solve it we get

cost of equity = 0.121735

cost of equity = 12.16 %

8 0

3 years ago

Assume the market for spiral bound notebooks is in equilibrium. All students in public schools need notebooks of some type when

alukav5142 [94]

a) If energy prices go up, manufacturing costs go up, which ultimately increases the price of the notebook. This will also most likely lead to a decrease in quantity, as the manufacturing cost per unit is higher. This is a supply determinant.

b) In theory, the subsidy reduces the cost per unit to the manufacturer, which increases supply and often reduces price, again being a supply-side determinant. In reality, it creates an incentive for notebook manufacturers to keep doing what they are doing, disincentivizing cost-saving developments and alternatives. Why innovate when you can get free government cheese?
Anyway, supply determinant.

c) The price of an inferior good increasing tends to push some demand for superior goods, especially when the income to cost of good ratio remains the same for the inferior good but gets better for the superior one. Demand determinant.

8 0

3 years ago