The correct answer is A. Low interest rate encourage consumers to borrow and spend, while high interest rates encourage saving.
Interest rate is termed as the rate which a bank charges to its borrowers.
Nationally a good interest rat for a loan is 3.7%.
Recession and inflation are some effects of interest rate. We get to hear the federal funds rates if the interest rate falls or rises.
If the interest rate becomes high people will start to spend less to avoid the high cost.
Answer:
revise, edit, cite sources.
Explanation:
The correct answers are four and four (4,4).
Why? Since Nettie was able to produce 8 cupcakes and 4 hamburgers within an hour, which gives her 8 cupcakes and 4 hamburgers available for trading while Becky was able to produce 4 cupcakes and 8 hamburgers in an hour. When they traded each other for a certain food its value will be equal to the opposite food, like 1 hamburger is equivalent to 1 cupcake, Nettie consumed 4 hamburgers, while Becky consumed 4 cupcakes, which is why they both consumed 4 pieces of food each after their trade.
Answer:
Price of stock = $49.5
Explanation:
<em>The Dividend Valuation Model(DVM) is a technique used to value the worth of an asset. According to this model, the value of an asset is the sum of the present values of the future cash flows would that arise from the asset discounted at the required rate of return. </em>
If dividend is expected to grow at a given rate , the value of a share is calculated using the formula below:
Price of stock=Do (1+g)/(k-g)
Do - dividend in the following year, K- requited rate of return , g- growth rate
DATA:
D0- 2.7
g- 10%
K- 16%
Price of stock = ( 2.7×1.1)/(0.16-0.1) = 49.5
Price of stock = $49.5
Answer:
- Financial institutions, such as investment banks, provide expertise in the acquisition of funds.
- The investment banking institution will allow the Gaga Enterprises CFO to raise more money at a lower cost per dollar raised
Explanation:
In the given scenario we want to compare help in raising capital using a financial institution versus raising it directly in the financial markets.
When raising capital using financial markets it is more expensive because the company will need to give out ownership rights in the company when they sell shares.
However when financial institutions provide the capital, there is a lower cost per dollar raised compared to sale of shares.
Also financial institutions act as financial advisors to their clients. So they will provide expertise in the acquisition of funds.
