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Author Question: Suppose there is an increase in profitability. This suggests that A) firms have increased their ... (Read 16 times)

jparksx

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on: Jun 30, 2018
Suppose there is an increase in profitability. This suggests that
 
  A) firms have increased their expectations of future profits.
  B) the real interest rate has increased.
  C) the rate of depreciation has increased.
  D) all of the above

Question 2

A consol bond promises to pay 1000 each year, forever, starting next year. If the nominal interest rate is 5, the present discounted value of this consol is
 
  A) 900.00.
  B) 995.00.
  C) 2,500.00.
  D) 20,000.00.
  E) 25,000.00.


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katieost

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Reply #1 on: Jun 30, 2018
Answer to Question 1

A

Answer to Question 2

D


jparksx

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  • Posts: 570
Reply 2 on: Jun 30, 2018
YES! Correct, THANKS for helping me on my review

triiciiaa

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Reply 3 on: Yesterday
:D TYSM

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