Answer:
True
Explanation:
Using desk check, talk-throughs, walkthroughs, simulation, and other exercises on a regular basis helps prepare the organization for crises and, additionally, helps keep the CM plan up to date.
Solution :
a). The current market value of the unlevered equity

= $ 40.45 million
b). The market value of the equity one year from now is

= $ 44.5 million - $ 18 million
= $ 26.5 million
c). The expected return on the equity without the leverage = 10%
The expected return on the equity with the leverage = 
= 0.93 %
d). The lowest possible value of equity without the leverage = $20 million - $ 18 million
= $ 2 million
The lowest return on the equity without the leverage = 10%
The lowest return on the equity with the leverage = 2 % as the equity is eroded.
Answer:
Policy impact will be positive
Explanation:
When investors pull out their funds from Asian, it will amount to scarcity of funds for developmental purposes. The contrary is the case when such funds are plunged into the US market. Its impact to the economy include:
1. Create more opportunity for development
2. Reduces the interest rate of lending in the society
3. Exchange rate value will decrease just because more of these funds will be used for business transactions
4. The prices of goods will be adjusted to balance the different caused by inflation
Answer:
Yes
Explanation:
You need to inform people of your business and what they do!
Answer:
The demand for loanable funds shifted rightward.
Explanation:
The loanable funds refers to the funds that are available for the borrowers to take the loan from the lender.
Here, the supply of loanable funds remains unchanged as consumers are saving certain funds to act as the lender. If there is a rightward shift in the demand curve for loanable funds which indicates that there is an increase in the demand for loanable funds. We know that interest rate is shown on the y axis and the quantity of loanable funds is shown on the x-axis.
Due to this rightward shift in the demand curve for loanable funds, there is an increase in an equilibrium interest rate and in the equilibrium quantity.