If interest rates increase due to inflation, but expected cash flows to a firm do not change, then you would expect stock prices to decline.
The current stock price is the present value of all future cash Inflows. So if the hobby fee will increase, then the discounting factor will grow, so the existing price of the destiny inflows will decrease, and the inventory charge will fall.
In economics, inflation is a popular increase in the expenses of products and services in an economic system. whilst the overall fee degree rises, each unit of foreign money buys fewer items and services; therefore, inflation corresponds to a reduction in the shopping power of money.
Higher interest costs imply better borrowing fees, human beings will sooner or later begin spending less. The call for goods and services will then drop, as a way to cause inflation to fall.
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Should be 21 days but that is not all the time!
Answer:
b.when the unemployment rate begins to decline following a recession.
Explanation:
In a recession there is usually a general decline in economic activities and a resultant decrease in spending. When recession occurs people will have less money to spend on buying stock so prices will fall s a result of reduced demand.
If however the economy is coming out of recession, economic activities are picking up, and unemployment begins to decline. This will lead to greater economic wealth, people will have more money to spend and demand for shares will rise. This will in turn lead to rise in price of shares.
I believe your answer is:
Cross Sourcing
Hope it helped!
Answer: C. 150-250 basis points
Explanation:
Banks now charge between 150 to 250 basis points above the London Interbank Official Rate (LIBOR). This means that they charge a premium of between 1.5% to 2.5% over LIBOR for construction projects.
Like earlier mentioned, risks of construction lending may be less in a number of respects than those associated with land acquisition but however there are still risks. Risks such as low Tenancy when built, the potential Environmental problems and location.
This is why it is necessary to charge such a premium which is actually a very competitive rate amongst Banks.
If you need any clarification do comment.
