Answer:
8.0 %
Explanation:
inflation gap = 3 - 2 = 1
=3 + 2 + (.5 x 1) + (.5 x 5)
= 8.0
Answer:
$5, 200 bushels of wheat
Explanation:
From the diagram the price support was at $6 per bushel, however if the government removes the price support or if there was no price support, then the price of the wheat will be $5 for a bushel. And in order to maintain the price support, from the diagram below, it is expected that the government would have to purchase 200 bushels of wheat.
Answer:
$25.15
Explanation:
The price the stock would be sold at the end of the three-year holding period can be computed using excel FV formula stated below:
=fv(rate,nper,pmt,-pv)
rate is the semiannual cost of capital i.e 14%/2=7%
nper is the number of dividend payments over three-year period which is 6
pmt is the amount of semiannual dividend payment
pv is the current stock price
=fv(7%,6,1.1,-22)=$25.15
I think that any bank or incorporated banking institutions involved can become members.