An increase in money supply coupled with a disruption in the supply chain will often cause inflation True False

Q: 40% Stock Dividend is equivalent to ______ split.   Question 18 options:   1.25 for 1   1 for…

A: A stock dividend is a distribution of a company's profits to its shareholders in the form of…

Q: Next quarter a stock will pay a dividend of $2.1 and currently trades for the market price of $36.…

A: Quarterly required return on the company's stock is calculated using following equation Quarterly…

Q: Which of the following should be included in the initial outlay? A. Purchase price of new equipment…

A: The question is related to the Capital Budgeting. The Initial Investment or Cash Outflow ia the…

Q: How much would $5,500 due in 100 years be worth today if the discount rate were 6.5%? a. $11.75 b.…

A: Formula. present value  =  Future value(1+r)n where , r= interest rate n= time period.

Q: Required: Explain why PLDT stocks is worth choosing to invest nowadays  Reference:…

A: Introduction:- PLDT is one of the leading telecommunications companies in the Philippines, providing…

Q: A candy manufacturer wishes to control risk by hedging its exposure to the price of sugar in the…

A: Concept. Futures contracts are used to hedge foreign currency risk.  They are used to prevent losses…

Q: Consider a bond at par initially issued for a 30-year term. Its nominal rate (annual coupon) is 5%.…

A: Bonds are securities with fixed coupon payments and redemption at par on maturity. This phenomenon…

Q: Please provide 4 reasons why separate capital budgets are important (in other words, what are 4…

A: Separate capital budgets are important because it will help in analysing the risk associated with…

Q: Carlo Elise bought a stock namely Joy and Empoy Corp. whose market price is Php102.50 and Php220.00…

A: According to bartleby guidelines , if question involves multiple sub parts , then 1st sub 3 parts…

Q: Mr. Torres paid PhP200,000 as downpayment for a farm. The remaining amount is to be settled by…

A: Equivalent monthly rate formula:- [1+(5%/2)]^(1/6) - 1   Then we will calculate cash price of firm…

Q: Startle Corporation wants to purchase a new production machine. They currently have an old machine,…

A: Particulars  Value Cost of new machine 600000 Time Period(years)  5 Tax rate 0.3 To Find:…

Q: Q1(c). Due to high demand for apartments, the rental condo will earn the following cash flows over…

A: NPV or Net Present Value is a method of capital budgeting helpful in taking investment decisions…

Q: The costs that are directly associated with bankruptcy such as legal and administrative expenses are…

A: The question is related to the cost associated with bankruptcy.

Q: Microbiotics currently sells all of its frozen dinners cash-on-delivery but believes it can increase…

A: Companies sell goods to customers to earn profit. This may be sold for credit or cash. If a company…

Q: value company would most likely include stocks with high eps growth and high valuations

A: Value investing involves investment in those stocks which may not have good valuations currently but…

Q: The high-tech home of today features computer apps that control air conditioning, heating, and large…

A: We will have to use the concept of capital budgeting in here. The capital budgeting tools that will…

Q: company recently reported $550,000 of sales, $352,000 of operating costs other than depreciation,…

A: EBIT The profitability of a business can be determined with the help of EBIT. EBIT means the…

Q: Please solve ASAP showing formulas/explanation. Will upvote once done but need help fast. Thank you…

A: 1,000 barrels   3 months

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A: In insurance there is need of license from the authorities and is to be  renewed after certain…

Q: . Following is the chart showing GBP/USD daily price movement in bar chart and 10 days moving…

A: An indicator for stocks called a moving average (MA) is frequently used in technical analysis to…

Q: Jorge Cabrera paid $1,100 for a 15-year bond 10 years ago. The bond pays a coupon of 8 percent…

A: We will be using Excel function, =RATE to find realized yield. =RATE(nper,pmt,pv,FV,type,guess)

Q: Rizza borrowed PhP20,000 payable with interest that is compounded quarterly at 9%. How much must she…

A: Borrowed amount (P) = Php20,000 Quarterly interest rate (r) = 0.0225 (i.e. 0.09 / 4) Quarterly…

Q: Suppose that the principal of a synthetic CDO is $125 million. The equity, mezzanine, and senior…

A: Suppose that the principal of a synthetic CDO is $125 million.   The equity, mezzanine, and senior…

Q: elding 6% annua $1,00 t:

A: of all  coupons payments, and redemption value payment ( nothing is given the face value is the…

Q: Explain the WACC in the context of a hurdle rate, return on invested capital (ROIC), an optimal…

A: WACC stands for a weighted average cost of capital and refers to the average cost taht is expected…

Q: Q22 Waller Co. paid a $0.137 dividend per share in 2000, which grew to $0.55 in 2012. This growth…

A: The valuation model that determines the fair value of a stock by assuming that dividends grow at a…

Q: (2) The spot price of the S&P 500 index is currently at 1200 per share. The 3-month futures price is…

A: Concept. Theoretical future price is computed and compared with a actual market price to make the…

Q: Memories Inc currently has 25 million shares outstanding with a current share price of $10.00 per…

A: Particulars Values Total number of outstanding shares 25000000 Current Share price   $…

Q: from the given information calculate EFS and P/E ratio  Net Income : 5,00,000 8% prference share…

A: In the given case, the income is given which is after deducting the expenses from the total income .…

Q: Consider the case of the Cast Iron Company. On each nondelinquent sale, Cast Iron receives revenues…

A: Granting credit allows the other party to defer payment in exchange for interest or cost of credit.…

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A: Capital Asset Pricing Model(CAPM) is an alternative model to find out required rate of return or…

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A: Cash flows refer to the transfer of liquid assets to and from a company because of its operations.…

Q: QUESTION 14 Based on the following cash flows (t=0 to t=5), calculate the approximate-ERR. Assume…

A: Formula:- External rate of return (ERR). ERR = FV of revenuesPV of costs1/n - 1 where , FV of…

Q: Describe, in words, how to use the variable growth rate technique to value a stock

A: The variable growth rate is the rate of growth which is not constant and various companies who are…

Q: To create a delta-neutral portfolio, the SIT fund has sold 10,000 at-the-money (ATM) put options on…

A: An option is a type of financial instrument that is based on the value of underlying securities,…

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A: XYZ has beta of 1.1. this means that when the market falls by 1%. The stock XYZ will decrease by…

Q: Too Young, Inc., has a bond outstanding with a coupon rate of 6.8 percent and semiannual payments.…

A: Semiannual coupon payment = (Coupon rate/2)*Par value of bond = 0.068/2×$1000 = $34 Number of…

Q: Which of the following should be included in the initial outlay? A. Purchase price of new equipment…

A: (Note that you have posted 10 different questions and I have answered the first one as per…

Q: Q23 A firm recently paid a $0.45 annual dividend. The dividend is expected to increase by 10…

A: The dividend discount model is a method to know the current value of the stock by discounted the…

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Q: Solve by using formulas. (Round your answer to the nearest cent.) Present value (in $) of an annuity…

A: Present value of annuity due is calculated using following equation Present value =…

Q: Powerade will invest $50 million in a project that will be funded completely by debt initially.…

A: The FTE technique is a method of valuation that accounts for all payments to and from debt holders…

Q: eeds to accumulate Php460,000.00 for her insurance investment for 2 1/2 years. She set up a sinking…

A: Future value of annuity includes the amount that is being deposited and amount of interest…

Q: A property holding company declared a dividend of $10 per share for the common stock. If the common…

A: In the given case, we have given dividend per share and market price of common stock . So, stock…

Q: a b C d e Amortization Payment Payment Period every year every 3 months every month every 6 months…

A: The amortized payment can be calculated using the present value of loan, payment frequency and…

Q: 13. Gains and losses are recognized daily IMR = $2,530, MMR = $2,300, for a T-Bond futures $100,000.…

A: Initial Margin (IMR) = $ 2530 Maintenance Margin (MMR) = $2300 T-bond contract initial investment =…

Q: Leo bought a used car for $4,500. While in class at George Brown, his car was damaged by an…

A: concept. Deductible. Deductible is the amount which the insurance policy holder has to pay out of…

Q: Convertible exchangeable preferreds give the holder the sole right to exchange their preferred stock…

A: Preferred share are all such shares which will be providing with the right to have preference…

Q: The price of a stock, which pays no dividends, is $76 and the strike price ofa10-month European put…

A: The stock price is $76 The strike price is $90 The time period is 10 months The risk-free rate is…

Loanable Funds Theory

The loanable funds theory is a neoclassical theory that determines the interest rate where the demand for loanable investments and supply of loanable funds intersect. To determine the interest rate, this theory employs linear regression and a demand curve. At the equilibrium point, demand for borrowings and demand for the issuance of borrowing funds are inextricably linked. This point of equilibrium should equalize demand and the supply of money available for borrowing.