Answer:
truth of lending act
Explanation:
laid the foundation for consumer protection
Answer:
Explanation:
Yield rate on unsecured bonds=12%
Yield rate on zero coupon bond=12%
Yield rate on 10% mortgage bonds=12%
Total debt value=10m+25m+20m=55m
Weight of unsecured bonds=10/55=0.182
Weight of zero coupon bonds=25/55=0.455
Weight of 10% mortgage bonds = 20/55= 0.363
Cost of debt=0.182*12+ 0.455*12+0.363*12=12%
Answer:
C. An explicit target is easier to understand by households and firms which makes monetary policy more transparent.
Explanation:
Explicit inflation targeting is a monetary policy used by central banks to check inflation rate is under control for medium term. However, critics target this policy as they believe that instead central bank should have monetary policy for long term inflation control and economic growth for long term. Product price targeting or nominal income targeting would create more economic stability.
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Answer: $38.39
Explanation:
First calculate the required return according to CAPM;
Required return = Risk free rate + beta ( market return - risk free rate)
= 2.50% + 0.97 ( 11% - 2.50%)
= 10.745%
Then using the Dividend discount model and remembering that there is no growth rate;
Value = Next dividend / ( required return - growth rate)
= (50 * 8.25%) / ( 10.745% - 0)
= 4.125/10.745%
= $38.39
