Answer:
The correct answer to the following question is D) interest rates would be increased by the government when there is almost full employment in the economy.
Explanation:
When in the economy, business are producing close to productivity and in the nation there is almost full employment , then it can be said that the economy is booming . Which means there is good amount of money supply in the economy and people are spending robustly and that means the demand is high , which ultimately tells that the prices of goods and services are high.
So to cut the prices, government will increase the interest rate which will lead to the increase in cost of borrowing, and that will cause decrease in money supply and demand will ultimately fall, which leads to decrease in prices of goods and services.
Answer:
The correct answer is letter "D": partner relationship management.
Explanation:
Partner relationship management is the set of actions two or more companies handle among themselves to share information about a market and conduct their operations strategically without losing their independence. The purpose of the gathering is to collaborate with each other -not necessarily financially- moreover when one of those companies is facing hardship.
Answer:
Part A:
Alcoa has higher expected return hence has a higher equity cost of capital.
Part B:
Capital cost higher=0.0775=7.75% higher
Explanation:
Part A:
Those stocks whose beta is higher has higher expected return because the risk is higher in these stocks. Since Alcoa has beta value value of 2.00 which is higher than Hormel foods having beta 0.45, it means Alcoa has higher expected return hence has a higher equity cost of capital.
Part B:
Difference in beta= Beta of Alcoa-Beta of Hormel
Difference in beta=2-0.45
Difference in beta=1.55
Capital cost higher=Difference in beta*Excess return
Capital cost higher=1.55*5%
Capital cost higher=1.55*0.05
Capital cost higher=0.0775=7.75% higher
Answer:
The investment of Joan Osborne is expected to produce a rate of return less that 10%.
Explanation:
This implies that the expected rate of return on the investment will the minimum rate of return.
An investment with a positive NPV would produce produce an expected rate of return higher than the minimum rate of return and vice versa.
The investment of Joan Osborne is expected to produce a rate of return less that 10%.
