All categories

4 years ago

Primary market explain how the treasury uses the primary market to obtain adequate funding

1 answer:

6 0

Each week, the Treasury holds an auction to issue T-Bills. When the auction opens, investors are able to place bids on the bills. The Treasury is then able to select the highest bids in order to obtain adequate funding.

You might be interested in

When a company employs a varied workforce of both men and women, people of many generations, and people from ethnically and raci

Inessa [10]

Answer: When a company employs a varied workforce of both men and women, people of many generations, and people from ethnically and racially different backgrounds, it is called workplace diversity.

Explanation:

Workplace diversity means when the organisation recruits employees from different backgrounds such as age, gender, ethnicity, religion, caste etc. By hiring people from different backgrounds the company has the benefits of hiring a pool of talented and skilled workers.

Creativity increases in the organisation for solving problems and different types of ideas can be brainstormed. The organisation can also understand the global market. Problems are solved quickly and it gives competitive advantage for the company in the market.

4 0

3 years ago

Read 2 more answers

Difference between listening and hearing?

hodyreva [135]

Answer:

Simple. When you listen, you put an effort in to it. It is a conscious mental process where you direct you will power. Whereas hearing is all about you being NOT deaf (haha!) more technically Hearing means the ability to perceive sounds. Often, this is an unconscious mental process.

Explanation:

As we understood in the answer, there are two types of mental activities. Conscious and Unconscious. Conscious ones are those you put an effort to, like reading a book, studying, playing a video game, etc. Listening is like this. your attention and focus is on during listening!

Unconscious mental processes are those that you don't put an effort to and often happens even without you noticing that they are happening. hearing is one such thing, the faculty of perceiving the sound.

3 0

3 years ago

Read 2 more answers

In markets where the government imposes an excise tax on unit sales, it also has a tendency to dabble with restrictions on adver

oksian1 [2.3K]

Answer:

I am sorry I don't know sorry again

7 0

3 years ago

Brushy Mountain Mining Company's ore reserves are being depleted, so its sales are falling. Also, its pit is getting deeper each

hammer [34]

The question is incomplete. The complete Question is,

Brushy Mountain Mining Company's coal reserves are being depleted, so its sales are falling. Also, environmental costs increase each year, so its costs are rising. As a result, the company's earnings and dividends are declining at the constant rate of 4% per year. If D0 = $2 and rs = 17%, what is the estimated value of Brushy Mountain's stock?

Answer:

P0 = $9.1428 rounded off to 9.14

This answer is for the question above. Change the values and use the same formula if the values differ

Explanation:

The constant growth model of dividend discount model (DDM) can be used to calculate the price of the stock today. DDM calculates the price of a stock based on the present value of the expected future dividends from the stock. The formula for price today under constant growth DDM is,

P0 = D0 * (1+g) / (r - g)

Where,

D0 * (1+g) is the dividend expected in Year 1 or next year

g is the constant growth rate in dividends

r is the discount rate or required rate of return

P0 = 2 * (1-0.04) / (0.17 + 0.04)

P0 = $9.1428 rounded off to 9.14

6 0

3 years ago

Tempo Corp. will issue preferred stock to finance a new artillery line. The firm's existing preferred stock pays a dividend of $

Len [333]

Answer: Relevant cost of new preferred stock = 10.53%

Explanation:

Given:

Dividend = $4.00 per share

Selling for = $40 per share.

Flotation costs = 5% of the selling price.

Marginal tax rate is 30%.

We can compute the cost of new preferred stocks using the following formula:

$Relevant\ cost\ of\ new\ preferred\ stock =\frac{ Dividend}{Current\ price\ after\ flotation\ Cost}$

$Relevant\ cost\ of\ new\ preferred\ stock =\frac{4}{40-(0.05\times40)}$

∴ Relevant cost of new preferred stock = 10.53%

Therefore, the correct option is (d)

6 0

3 years ago