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2 years ago

Why does an inverted yield curve serve as a predictor of a recession?.

2 answers:

3 0

An inverted curve reflects the bond market's expectation for the Fed to cut rates down the line. The Fed normally cuts rates in response to an economic downturn, hence why an inverted curve could be a recession signal.

andre [41]2 years ago

3 0

Answer:The Fed normally cuts rates in response to an economic downturn

The Treasury yield curve normally slopes upward. An inverted curve reflects the bond market's expectation for the Fed to cut rates down the line. The Fed normally cuts rates in response to an economic downturn, hence why an inverted curve could be a recession signal.

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Holdup Bank has an issue of preferred stock with a $8 stated dividend that just sold for $92 per share. What is the bank's cost

kkurt [141]

Answer:

Discount rate will be 8.6 %

Explanation:

We have given that dividend = $8

And stock is given as = $92

We know that stock value is given by

We have to find the discount rate

Stock value $=\frac{dividend}{discount\ rate}$

So discount rate $=\frac{dividend}{stock\ value}=\frac{8}{92}=0.086=8.6$ %

So discount rate will be 8.6 %

8 0

3 years ago

umbrellas are highly seasonal l.therr highest selling month is 325% of their lowest selling month . Durring their lowest selling

gladu [14]

980 units times 325% is 3185 units in the peak month

4 0

3 years ago

Pina Inc. has outstanding 10,500 shares of $10 par value common stock. On July 1, 2020, Pina reacquired 104 shares at $87 per sh

umka2103 [35]

Answer:

Please see explanation

Explanation:

The following journal entries shall be recorded by the Pina Inc in its accounts for the transactions mentioned in the question:

July 1, 2020 Debit Credit

Treasury shares $9,048

(104*87)

Bank $9,048

(Reacquiring of 104 shares at $87 per share)

September 1, 2020 Debit Credit

Bank $5,670

(63*90)

Treasury shares $5,481

(63*87)

Paid in capital $189

(5,670-3,567

(Reissuing of 63 shares at $90 per share)

November 1, 2020 Debit Credit

Bank $3,403

(41*83)

Paid in capital $164

(3,567-3,403)

Treasury shares $3,567

(41*87)

(Reissuing of 41 shares at $83 per share)

8 0

4 years ago

Vito borrows $150,000 from Workers & Farmers Bank to buy a home. If he fails to make payments on the mortgage, the bank has

mariarad [96]

Answer: Option C

Explanation: Foreclosure is something that occurs if the mortgage is not paid by a borrower. In fact, it is a judicial process through which the person relinquishes all ownership rights.

If the owner is unable to settle off the outstanding loans or sell property through a short sale, then the estate will go to an exchange for foreclosure. If the estate does not sell then, it will be taken over by the lender.

When a lender loans you money without any collateral (credit card debt, for instance), it can take you to court for failure to pay, but it can be very hard to collect money from you.

Lenders often sell this sort of debt to outside collection agencies for pennies on the dollar and write off the loss. This is considered an “unsecured loan.”

5 0

4 years ago

Which method of allocated profits and losses is based on a percentage of initial investment by the partners?

Elanso [62]

Profit and loss ratio is the answer

3 0

3 years ago