All categories

3 years ago

Which of the following is the one key interest rate to focus on when trying to forecast interest rate trends in the future?

Business

1 answer:

Deffense [45]3 years ago

7 0

Answer:

d. Federal funds rate

Explanation:

The federal fund rate is considered risk-free hence, they will always be paid in time for the full amount. It is the basis for all the calculation to get the other rates in the markets.If the FED increases or decreases the federal fund rate then, all the others will change accordingly.

IE: a change in the FED rate will change the CAMP of all companies and thus, changing the WACC as well

You might be interested in

Sharon Lee wants to accumulate $10,000 by the end of 12 years. If the annual interest rate is 8.00 percent and interest compound

nataly862011 [7]

Answer:

Amount invested that is principal amount will be $3971.137

Explanation:

We have given that Sharon Lee wants to accumulate $10000 by the end of 12 years

Future value A = $10000 after 12 years

Rate of interest is given r = 8%

Time period n = 12 year ( which is required to accumulate the future value $10000)

We have to fond the amount invested, that is principal amount

We know that future value is given by

$A=P(1+\frac{r}{100})^n$

$10000=P(1+\frac{8}{100})^{12}$

$10000=P\times 1.08^{12}$

$10000=P\times 2.5181$

P = $3971.137

So the amount invested that is principal amount will be $3971.137

3 0

4 years ago

Which two of the following are long-term sources, of finance?

Sergeeva-Olga [200]

Answer:

the answer is B and D

8 0

3 years ago

Million dollar question. does money equal happiness? Explain with a paragraph

aliina [53]

It depends on the person I would definitely be happy but that’s just me

4 0

3 years ago

Parker owned all of Odom Inc. Although the Investment in Odom Inc. account had a balance of $834,000, the subsidiary's 12,000 sh

Lorico [155]

Answer:

$128,400

Explanation:

Account balance $ 834,000,

Subsidiary's 12,000 at $56 per share. Odom Issued 3,000 at $70 per share

$ 56 X 12,000 = $672,000

$ 672,000+ $70 X 3,000 = $ 882,000

$ 882,000 X .80 = $ 705,600

$ 705,600 – $ 834,000 Investment Account Balance = $128,400

Therefore Reduction in Investment Account is $128,400

The Transaction affect the Investment in Odom inc account because their is reduction in the investment Account from $834,000 to $128,400

3 0

3 years ago

Merchandise paid for within the discount period for a Cash refund was returned. This will be recorded with a A. credit to a liab

Gnom [1K]

The answer would be D: debit to an asset. Hoped this helped:)

5 0

3 years ago