1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
ASHA 777 [7]
3 years ago
6

The intersection of the demand for loanable funds and the supply of loanable funds determines the A) prevailing interest rate B)

par value C) price/earnings ratio D) real interest rate
Business
2 answers:
Marrrta [24]3 years ago
7 0
C. price/earnings ratio
saw5 [17]3 years ago
7 0

Answer:

<h2>The answer here would be option D) or real interest rate.</h2>

Explanation:

  • The market for loanable funds is a monetary or financial market where the main good or commodity being bought and sold or commercially exchanged is money.
  • The borrower of money constitute the buyer in this market and whose who save money are the main suppliers of money or loanable funds in the market.
  • The price or the value of money is represented by the market interest rate which has a positive direct relationship with the supply of money or loanable funds and an inverse or negative relationship with demand for money by the borrowers.This implies that as the market interest rate increases,the suppliers want to supply more of their monetary or financial savings in the form of financial loans to the borrowers with the anticipation of higher returns on the respective loans and vise versa.On the other hand,the borrower's demand for loanable funds or money decreases as the market interest rate increases,as now they would have to pay more on any financial borrowings in the market.
  • The demand and supply of loanable funds intersect at the point in the market where both are equal and the market interest rate at which they intersect is identified as the real interest rate in the loanable funds market in any economy.
You might be interested in
Why the feedback form is so important for the trainer and the training itself?​
SashulF [63]

Answer:

It tells on how he or she can improve his ways of training based on the previous people he or she trained feedbacks.

5 0
3 years ago
Read 2 more answers
When janice went to work as a hair stylist in rick's beauty shop, she entered into an agreement with rick whereby if she left sh
ASHA 777 [7]

<span>The question is incomplete, here is the complete question which I previously came across;</span>

When Janice went to work as a hair stylist in Rick's beauty shop, she entered into an agreement with Rick, whereby, if she left she would not work for another beauty shop within 50 miles for 2 years. Rick trained Janice in a number of new techniques. After nine months, Janice was offered a great job down the street at a new beauty shop, quit Rick, and had a number of customers follow her down the street to her new job. Rick claimed that she had signed a contract and had no right to go to work at the new shop. Janice disagreed and told Rick that no judge in the country would enforce such an agreement. Janice told Rick that she was more worried about a customer, Treena, who was threatening to sue her because her hair turned green after Janice worked on it. Janice agreed that Treena's hair was damaged. Janice pointed out, however, that she told Treena that odd results could result from a dye attempt, and she required that Treena sign a contract releasing Janice from all liabilities before she did anything with Treena's hair. Treena, however, sued anyway. The agreement Rick and Janice entered into is referred to as?


The answer is, the agreement Rick and Janice entered into is referred to as "<span>covenant not to compete".</span>

<span>
</span>

It is hard to decide if a judge will implement a non-competition agreement. While the privileged insights of a business are important, the law additionally puts value to a person's opportunity to seek after other work. To be enforceable Courts more often than not require that a contract not to compete be sensible. In California, non-competes are adequately unlawful except if you are selling a business. Different states will implement a few provisions, as a rule the trade secret protection, however not the work limitations.

3 0
3 years ago
Which of the following statements is​ FALSE? A. According to the constant dividend growth​ model, the value of the firm depends
Vedmedyk [2.9K]

<u>A. According to the constant dividend growth​ model, the value of the firm depends on the current dividend​ level, divided by the equity cost of capital plus the grow rate.</u>

This is the false statement.

<u>Explanation</u>:

The fair value of stock can be calculated using the dividend growth model. While calculating the value of the stock, the growth of the dividends should be considered either in a stable rate or at a different rate during the period at hand.

The dividend growth model is also known as a <u>valuation model</u> as it is used to achieve the value of the stock.

Equity cost is the cost that the firm owes to the equity investors to compensate the risk of their investment.

4 0
3 years ago
How does Apple advertise their Iphone 11 and become successful? It has to be a judgement on how successful they were.
crimeas [40]

Well, through commercials, but they were mainly successful because everyone (almost) knows and trusts Apple, so when the latest product is released, everyone flocks to it because it's new, cool, sleek, and awesome.

They also do partnerships with Verizon and Sprint or whatever.

3 0
3 years ago
Read 2 more answers
Delta Corporation has a bond issue outstanding with an annual coupon rate of 7% and 20 years remaining until maturity. The par v
denpristay [2]

Answer:

Current yield is 10.3%

Explanation:

Coupon payment = 1000 x 7% = $70 annually

Number of periods = n = 20 years

Yield to maturity = 11% annually

Price of bond is the present value of future cash flows, to calculate Price of the bond use following formula

Price of the Bond = C x [ ( 1 - ( 1 + r )^-n ) / r ] + [ F / ( 1 + r )^n ]

Price of the Bond = $70 x [ ( 1 - ( 1 + 11% )^-20 ) / 11% ] + [ $1,000 / ( 1 + 11% )^20 ]

Price of the Bond = $557.43 + $124.03 = $681.46

Current yield is the ration of coupon payment to the price of the bond.

Current Yield = Coupon Payment / Price of Bond = $70 / 681.46 = 0.1027 = 10.3%

5 0
3 years ago
Other questions:
  • Chester's product manager is considering lowering the price of the Cone product by $2.50 and wants to know what the impact will
    7·1 answer
  • A perfectly competitive firm maximizes its profit by________.
    7·1 answer
  • How might a trade deal that allows two nations to freely exchange goods affect the circular flow of income? Neither country is l
    5·1 answer
  • Apply What You’ve Learned - Managing Credit Cards and ConsumerLoans
    11·1 answer
  • Customers learn to trust companies that consistently demonstrate good behavior. Those same companies can lose this position with
    5·1 answer
  • AS/AD model - If there is a decrease in Aggregate Income and Spending in this economy, then the equilibrium could shift from ___
    10·1 answer
  • Which fiscal stimulus policy will provide a greater incentive to work?
    10·1 answer
  • Levered, Inc., and Unlevered, Inc., are identical in every way except their capital structures. Each company expects to earn $18
    10·1 answer
  • Sonor Systems undertakes its own machine maintenance. The depreciation on the equipment is $20,000 per year and operating cost i
    7·1 answer
  • What is the management information system that manipulates information to create business intelligence in support of strategic d
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!