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Lisa [10]
3 years ago
5

Which of the following is consistent with a very flat yield curve for government bonds? a) An increasing risk of bond defaults b

) Expectations of higher short-term interest rates in the future c) Expectations of increasing rates of economic growth d) A high demand for this country’s bonds from overseas investors
Business
1 answer:
Effectus [21]3 years ago
8 0

Answer:

b) Expectations of higher short-term interest rates in the future

Explanation:

When the yield curve is normal (upward sloping) it is because investors expect longer-maturity bonds to have a higher yield than shorter-maturity bonds, since interest rates are expected to rise in the long term.

On the contrary, if the yield curve is flat, it is because short-maturity and long-maturity bonds are giving the same, or almost the same yield, indicating that investors expect short-term interest rates to rise so much, that they compensate the capital gains for short-maturity bonds in terms of interst.

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You are considering an investment in Justus Corporation's stock, which is expected to pay a dividend of $1.50 a share at the end
kkurt [141]

Answer:

44.35

Explanation:

The stock will increase the grow rate of the company. We need to solve this.

The grow rate will be determinate using the Gordon dividend grow model

\frac{divends}{return-growth} = Intrinsic \: Value

we clear for g

return - \frac{divends}{stock} = grow

to find the return we use CAPM

Ke= r_f + \beta (r_m-r_f)  

risk free 0.032

market rate

premium market = (market rate - risk free) = 0.045

beta(non diversifiable risk) = 0.9

Ke= 0.032 + 0.9 (0.045)

Ke 0.07250

this will be the return we use in the formula for grow

g = 0.0725 - 1.5/40 = 0.03500

At this rate our dividends will grow and also our share price

the stock in 3 years will be the current price capitalized with the grow rate

Stock \: (1+ grow)^{time} = Stock_{3years}

Stock    40.00

time 3.00

rate         0.035

40 \: (1+ 0.035)^{3} = Stock_{3years}

Futue value in 3 years = 44.35

5 0
3 years ago
How is the economy likely to be affected if a democracy becomes an oligarchy ​?
vladimir2022 [97]
The answer to this question is: <span>Upper classes in power are likely to become richer at the expense of others
In Oligarchy, the government will be fully centralized and totally controlled by the upper class of the society. This means that all legislation that made by the government will be very likely to bring benefit for themselves first rather than paying attention to the things that the majority of citizens need the msot.</span>
5 0
3 years ago
What is the best way to finance your own business?
Kruka [31]
I would say different things such as crowdfunding, bank loans, <span>start-up funds, factoring, and angel investors. Getting enough money to support your work, possible co-owners and workers, and even defining on the money taken in from customers will take some time to evaluate. </span>
4 0
3 years ago
Debt management ratios measure the extent to which a firm uses financial leverage and the degree of safety afforded to . They in
Ket [755]

Answer:

The 1st ratio examines debt by observing at the company's balance sheet, whereas the other two ratios examine debt by observing at the company's income statement. Thus, debt-to-total-assets ratio processes the %age of assets delivered by debt in order to fund total assets. The computed equation will be: (Total long term debt + Total short term debt) / Total assets). The high debt ratios that overdo the business average might create it expensive for a company to borrow the extra funds without initial raising for more equity. The period’s interest received ratio processes the degree to which the income can fall before the company is incapable to meet its yearly interest expense expenditures. However, the computed equation is EBIT / total interest payable: EBIT is used as the numerator as it is funded with pretax dollars.  The company’s capability to pay will not be affected by the taxes. The EBITDA analysis ratio is EBITDA / total interest: This proportion is more comprehensive than the TIE proportion because it identifies that depreciation and payback are not expenses, so these aggregates are accessible to service debt, and lease expenses and principal refunds are fixed expenses.

8 0
3 years ago
An agent is aggrieved by an action of the administrator summarily suspending that person's registration. the agent can:
IRINA_888 [86]

If the Administrator summarily suspends an agent's registration, the agent (who is not too happy about this!) can request a hearing in front of the Administrator.

A person chosen by the court to manage the estate of someone who passed away without a will is known as an administrator in law. An official appointed under an Administration Order in regard to a business that is having financial difficulties as an alternative to liquidation, as defined by British bankruptcy law.

An administrator is essential to the efficient operation of a firm and provides office support to either an individual or a team. They might be in charge of answering phones, welcoming and guiding guests, word processing, making spreadsheets and presentations, and filing.

Learn more about administrator here

brainly.com/question/26096799

#SPJ4

7 0
2 years ago
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