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Author Question: The demand for loanable funds is downward sloping because the ________ the interest rate, the ... (Read 49 times)

BRWH

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on: Jun 29, 2018
The demand for loanable funds is downward sloping because the ________ the interest rate, the ________ the number of profitable investment projects a firm can undertake, and the ________ the quantity demanded of loanable funds.
 
  A) greater; greater; greater B) lower; greater; greater
  C) greater; smaller; greater D) lower; smaller; greater

Question 2

If the present value equation used to calculate the price of a stock you are considering buying is 7 / (0.04 - 0.03), which of the following is correct, assuming that dividends will grow at a constant rate?
 
  A) The dividend is 7 per share, the dividend growth rate is 4 percent, and the interest rate is 3 percent.
  B) The stock price is 700, the dividend growth rate is 3 percent, and the interest rate is 4 percent.
  C) The stock price is 7, the dividend growth rate is 3 percent, and the interest rate is 1 percent.
  D) The dividend is 7 per share, the dividend growth rate is 1 percent, and the interest rate is 4 percent.


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Sierray

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Reply #1 on: Jun 29, 2018
Answer to Question 1

B

Answer to Question 2

B


BRWH

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Reply 2 on: Jun 29, 2018
Great answer, keep it coming :)

nathang24

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Reply 3 on: Yesterday
Excellent

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