Answer:
C. Banks make private loans; their conclusions on who is creditworthy are not made public.
Explanation:
Investors in financial instruments who engage in information collection face a free-rider problem, which means other investors may be able to benefit from their information without paying for it.
Individual investors, therefore, have inadequate incentives to devote resources to gather information about borrowers who issue securities.
Answer:
The answer to the question is B I51,753 bonds
Explanation:
The present price of the bond and the total amount to be raised of $170m were used in arriving at the number of bonds to be issued.
n 20
Coupon 6.60%
YTM 7.7%*1000=77
FV 1000
PV ($1,120.25)
The current price of the bond $1,120.25
Total amount to be raised $170,000,000
Number of bonds to be issued=total amount /bond price 151,752 approx...151753
Find attached spreadsheet with formulas so as to be able to follow through.
Answer:
Walker's did not outperform because it PE Ratio is close to Industry average. Industry's data is based on average which means some of the firms may have very high PE ratio and some might have quite lower than the average. It is not obvious that the Walker's outperformed or under-performed. Complete data about the individual firms might make us able to compare the performance of Walker's. Apparently its performance is up to the mark as its PE ratio is very close to Industry average.
Explanation:
<u>PE Ratio</u> is a term which show the investors confidence on the firm. It shows that how much price investors are willing to pay against each unit of earning.
Answer:
A decrease in investment spending at each price level will shift the aggregate demand curve to the left
