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Paraphin [41]
4 years ago
15

Most recently, the public has been expressing concerns about inflation. As a result the federal reserve system of the United Sta

tes, also known as the FED, has been pressed to increase interest rates to avoid long term inflation in the US economy. What impact will an increase in interest rates have on the economy as a whole?
Business
1 answer:
aleksandrvk [35]4 years ago
7 0

Answer:

Check the following explanations

Explanation:

The Federal Reserve is responsible for making monitory policies in the US. When the interest rates are increased by the Fed Reserve it lead's to cascading effects in the economy as a whole, it lead to :-

  • Increased cost of borrowings, which reduces investments.
  • Higher mortagage interest payments, leading to reduced usage, fall in the house prices.
  • Increased Returns on Savings, leading to less expenditure and high saving behaviour of the people.
  • Currency Appreciation, due to increased demand of local currency at the international market.
  • Higher Government Debt Intererst Payments.

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Suppose Stark Ltd. just issued a dividend of $1.59 per share on its common stock. The company paid dividends of $1.25, $1.33, $1
Harlamova29_29 [7]

Answer:

The answer is below

Explanation:

a) The dividend growth rate is given as D2/D1 - 1

Year            Dividend                        Growth rate

1                    $1.25                            

2                   $1.33                       ($1.33/ $1.25 - 1) 6.4%

3                   $1.4                          ($1.4/$1.33 - 1) 5.26%

4                   $1.51                         ($1.51/$1.4 -1)  7.86%  

       

The arithmetic average growth rate is the average of all the growth rates.

Arithmetic average growth rate = (6.4% + 5.26% + 7.86%) / 3 = 6.51%

The cost of annuity = (cost of common stock / Selling stock price) * 100% + Average growth rate

The cost of annuity = ($1.59 / $40) * 100% + 6.51% = 10.49%

b) The geometric growth rate is given as:

geometric average growth rate =

(\frac{D_n}{D_o} )^{\frac{1}{n} }-1\\D_n=1.51,D_o=1.25,n=3\\\\Geometric\ growth\ rate=\frac{1.51}{1.25}^{1/3}-1=6.5\%

The cost of annuity = ($1.59 / $40) * 100% + 6.5% = 10.48%

7 0
3 years ago
The Delphi method is __________.
Nadusha1986 [10]

Answer:

B. a qualitative forecasting technique in which experts work individually to develop forecasts.

Explanation:

The Delphi method is a forecasting process framework based on the results of multiple rounds of questionnaires sent to a panel of experts. Several rounds of questionnaires are sent out to the group of experts, and the anonymous responses are aggregated and shared with the group after each round.

The experts will answer without brainstorming with others

5 0
4 years ago
You work as a financial consultant for a major national company. One of your clients, Kay, comes in to talk to you about a new i
PolarNik [594]

Answer:

Under government bankruptcy laws of the United States, anybody can declare financial insolvency in order to look for help from leasers. In any case, this comes to the detriment of harming one's financial assessments for quite a while (now and then upto a multi year time span) alongside bringing about critical lawful,, procedural and court charges.  

That being stated, liquidations are significantly troublesome procedures essentially in light of the fact that loan bosses would not need any account holder to take the easy way off in the event that the indebted person wouldn't like to restitution. This is considerably progressively evident if there should be an occurrence of understudy advances where the borrower (Kay for this situation) needs to demonstrate without sensible uncertainty that he/she would confront "undue hardship" in the event that he/she were to continue with credit reimbursements. The "undue hardship" demonstrating part is available to an assortment of understandings, rounds of questioning and lawful examination by the courtroom. Most courts use the "Brunner Test" to decide an indebted person's qualification for understudy advance release. The key arrangements of the test are set somewhere around the United States Department of Education's, Federal Student Aid Office as given beneath:  

(a) The account holder, in view of his/her present pay and costs, can't keep up a better than average "insignificant" way of life for himself/herself and his/her wards in the event that he/she were to proceed with the advance reimbursements.  

(b) Additional conditions demonstrate certain the way that this condition will prevail for a larger part of the residency of the advance reimbursement.  

(c) The borrower has taken a stab at reimbursing his/her understudy advance in accordance with some basic honesty up until this point.  

In this specific situation, Kay would be in an ideal situation in attempting to get the advance deferred, on the off chance that she declares financial insolvency post changing her activity. This is so on the grounds that her present place of employment pays enough to reimburse her understudy advance and consequently don't meet two of the three Brunner Test models. Exchanging over to the non benefit employment would compromise her present way of life (and most likely that of her wards) and adjusts to the fundamental soul of the "Brunner Test". It would off base be upto her legitimate insight to demonstrate this danger (post work change) to her expectation for everyday comforts before the court and addition an understudy advance waiver.

7 0
3 years ago
Which of the following is NOT a differentiator between manufacturing and service operations? A. Transportation B. Customer conta
KengaRu [80]

Answer: D) Cost per unit

Explanation:

In terms of manufacturing field, where the goods are manufactured, service operation is the process which workers manage and control demand of customers after getting training from operation manager.

Cost per unit is not the factor that acts as differing agent between manufacturing  process and service operation because it is a part of the process which is handled by workers .

Other options are incorrect because transportation, contact of customer and resale are the factors that contrast the manufacturing service and service operations.Thus, the correct option is option(D)

5 0
3 years ago
Let illustrate what you you know about materiality concept.
guapka [62]

Answer:

rfb rgab rko

its a study meeting of girls i am also girl here we only study boy were not allowed because he disturb here we only study its safe meeting of girl here we only study

5 0
3 years ago
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