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3 years ago

Who is harmed the MOST during periods of unexpected inflation? A) 1 B) 1 and 3 C) 1, 2, and 3 D) 2 and 4

Business

2 answers:

Harrizon [31]3 years ago

6 0

Answer:

Your answer is B) 1 and 3

Explanation:

CaHeK987 [17]3 years ago

4 0

Answer:

The people that are most affected are older ones that depend on a fixed income and people with loans to be payed that have adjustable interest rates.

You might be interested in

The capital asset pricing model assumes A. all investors are fully informed. B. all investors are rational. C. all investors are

Alex777 [14]

Answer:

The correct option is E ,all investors are fully informed,are rational and are mean-variance optimizers

Explanation:

The Capital Asset Pricing Model is used in analyzing investment opportunities to determine the required rate of return for a given level of risk.The higher the risk the higher the investor's return as a compensation for taking higher risk.

The model assumes that there is free access to information,hence investors are well informed.

They are also rational since they demand for return depending on the risk to be taken.

Finally,they try as much as possible to put invest where it is most profitable,hence they mean-variance optimizers.

6 0

3 years ago

D1 and S1 represent the initial demand and supply curves. If there is a huge increase in the desire of U.S. buyers to consume Br

Zanzabum

Answer:

H (from Graph)

Explanation:

See the Graph attached.
New Equilibrium point will be found at H.
When demand will increase for British products payments will be processed in Pounds and its demand will increase consequently. This will make the flow British pound in the US market making the price of dollar come down as compared to Pound. From the graph we can see that point E corresponds to our description.

7 0

3 years ago

An _________________ is calculated by subtracting the firm's costs from its total revenues, _______________________. Group of an

solmaris [256]

Answer:

An accounting profit is calculated by subtracting the firm's costs from its total revenues, excluding opportunity cost

8 0

2 years ago

Johnny Cake Ltd. has 8 million shares of stock outstanding selling at $20 per share and an issue of $40 million in 8 percent ann

dangina [55]

Answer:

Year Cashflow [email protected]% PV [email protected]% PV

$ $ $

0 (905) 1 (905) 1 (905)

1-16 52.80 7.8237 413 10.8377 572

16 1,000 0.2176 218 0.4581 458

NPV (274) NPV 125

Kd = LR + NPV1/NPV1+NPV2 x (HR – LR)

Kd = 5 + 125/125 + 274 x (10 – 5)

Kd = 5 + 125/399 x 5

Kd = 6.57%

Ke = D1/Po + g

Ke = $3/$20 + 0.04

Ke = 0.19 = 19%

WACC = Ke(E/V) + Kd(D/V)

WACC = 19(160,000,000/196,200,000) + 6.57(36,200,000/196,200,000)

WACC = 15.49 + 1.21

WACC = 16.7%

Market value of the company $

Market value of equity (8,000,000 x $20) 160,000,000

Market value of bond ($40,000,000 x $905/$1,000) 36,200,000

Market value of the company 196,200,000

Explanation:

In this case, we will calculate cost of debt using interpolation formula. The cashflow for year 0 is the current market price while the cashflow for year 1 to 16 refers to after-tax coupon, which is calculated as R(1-T). R = 8% x $1,000 par value = $80. Then, R(1-T) = 80(1-0.34) = $52.80. The cashflow for year 16 is the par value. The cashflows are discounted in order to obtain the cost of debt.

Cost of equity is the ratio of expected dividend to current market price plus growth rate.

WACC is the aggregate of cost of each capital multiplied by the proportion of each stock in the market value of the company.

5 0

3 years ago

Top-down security analysis a. starts with the analysis of a firm. b. includes economic, industry, and company analysis. c. conce

IrinaVladis [17]

Top-down security analysis includes economic, industry, and company analysis.

<h3>What is Top-down security analysis?</h3>

Viewing the big picture in relation to the sectors or industries where investors wish to make investments is the goal of the top-down analysis.
For the purpose of making the ultimate investing decision, detailed information and financial statements are examined after the selection of stocks and sectors.
Top-down investing is a method of investment analysis that prioritizes evaluating macroeconomic issues like GDP, employment, taxation, and interest rates before focusing on microeconomic aspects like particular industries or businesses.
The top-down strategy is simpler for novice investors and for those who lack the time to review a company's financials. Even in bear markets, bottom-up investing can assist investors in selecting high-performing stocks.

To learn more about Security Analysis refer to:

brainly.com/question/13246388

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4 0

2 years ago