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sergij07 [2.7K]

3 years ago

14

The beta of elsenore, inc., stock is 1.6, whereas the risk-free rate of return is 8 percent. if the expected return on the marke

t is 15 percent, then what should investors expect as a return on elsenore

1 answer:

Jlenok [28]3 years ago

3 0

As per the CAPM, the investors of elsenore should expect a return of = rf + beta*(rm-rf)

The investors of elsenore should expect a return of = 8+1.6*(15-8) =19.2%

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Keynes argued that the downward slope of the demand for money curve depends on the?

Naya [18.7K]

Keynes argued that the downward slope of the demand for money curve depends on the rate of interest.

<h3>What is money curve?</h3>

A vertical curve that depicts the relationship between the supply of money and the interest rate; because the money supply is under the control of the central bank, it is unaffected by changes in the interest rate. The level of income and real GDP, the level of prices, expectations, transfer costs, and preferences are some of the most significant factors that might alter the demand for money.

Because the Fed determines the amount of money that is accessible without taking the value of money into account, the money supply curve is vertical. The downward slope of the money demand curve results from consumers having to carry more cash to make purchases when the cost of goods and services rises as the value of money declines.

Due to the inverse link between the amount of money demanded and the interest rate, the money demand curve has a negative slope. In other words, the interest rate, which stands for the opportunity cost of holding money, causes the money demand curve to slope downward.

The demand curve has a downward slope, which indicates that as the price falls, demand will rise. The demand curve has a decreasing slope since quantity is plotted on the x-axis and price is plotted on the y-axis.

Hence, Keynes argued that the downward slope of the demand for money curve depends on the rate of interest.

To learn more about money curve refer to:

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6 0

2 years ago

A liquidity trap is a situation in which: _________

tresset_1 [31]

In monetary policy, reference to a zero bound on interest rates means that the central bank can no longer reduce the interest rate to encourage economic growth. As the interest rate approached the zero bound, the effectiveness of monetary policy as a tool was assumed to be reduced.

8 0

3 years ago

Which of the following business ownership structures is the simplest and easiest to set up?

victus00 [196]

Answer:

C. Sole Proprietorship

Explanation:

Sole Proprietorship is a business owned and less capital required business that can be operated, it is can be operated even by an individual with a simple setup such as a table and a chair in a garage.

With Limited Liability Company (LLC), there are a lot of legal requirements to be reached before setting it up, such as putting in place board of directors, internal auditors and external auditors, mentioning few.

With Partnership it requires two or more individuals in order to operate in addition to a partnership deed.

With Corporation it is similar to the LLC

Thus Sole proprietorship is the simplest and easiest to set up.

4 0

3 years ago

Sun-2-shade wants to link its computerized functions of all its divisions and subsidiaries of the firm into an integrated softwa

seropon [69]

Sun-2-shades can utilize enterprise resource planning (ERP), a more up to date form of materials requirement planning (MRP) that joins the electronic elements of the considerable number of divisions and backups of the firm, for example, finance, HR, and request satisfaction into a solitary coordinated programming program that uses a solitary database

3 0

3 years ago

In the current year, Nighthawk Corporation, a calendar year C corporation, has $5,080,000 of adjusted taxable income and $152,40

katrin2010 [14]

Answer:

$‭1,676,400‬
$2,032,000.

Explanation:

1. Nighthawk deduction for business interest assuming prior three-year period of $35,200,000 average gross receipts

As per the Tax Cuts Act of 2017, Nighthawk can deduct its Business interest income and up to 30% of its taxable income.

= 152,400 + (5,080,000 * 30%)

= $‭1,676,400‬

2. Assuming that Nighthawk has average gross receipts for the prior three-year period of $19,500,000, this would put them below the $25 million mark from the Act which means the deduction would be the entire business interest expense of $2,032,000.

3 0

3 years ago