This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: The demand for loanable funds is downward sloping because the ________ the interest rate, the ... (Read 46 times)

BRWH

  • Hero Member
  • *****
  • Posts: 553
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.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

Sierray

  • Sr. Member
  • ****
  • Posts: 343
Reply #1 on: Jun 29, 2018
Answer to Question 1

B

Answer to Question 2

B


BRWH

  • Member
  • Posts: 553
Reply 2 on: Jun 29, 2018
Excellent

adammoses97

  • Member
  • Posts: 337
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

« previous next »
 

Did you know?

In the United States, congenital cytomegalovirus causes one child to become disabled almost every hour. CMV is the leading preventable viral cause of development disability in newborns. These disabilities include hearing or vision loss, and cerebral palsy.

Did you know?

There are 60,000 miles of blood vessels in every adult human.

Did you know?

All adverse reactions are commonly charted in red ink in the patient's record and usually are noted on the front of the chart. Failure to follow correct documentation procedures may result in malpractice lawsuits.

Did you know?

Patients who have undergone chemotherapy for the treatment of cancer often complain of a lack of mental focus; memory loss; and a general diminution in abilities such as multitasking, attention span, and general mental agility.

Did you know?

More than 34,000 trademarked medication names and more than 10,000 generic medication names are in use in the United States.

A downward-sloping spark line usually indicates high secondary ignition system resistance or an ... A downward-sloping spark line usually indicates high secondary ignition system resistance or an ...
Determining the order and rate constant of an irreversible first-order reaction Determining the order and rate constant of an irreversible first-order reaction
AAC, Inc. is planning to issue $5,000,000 in 180-day maturity notes paying a rate of 12 percent ... AAC, Inc. is planning to issue $5,000,000 in 180-day maturity notes paying a rate of 12 percent ...
The rate of replacement of a recessive allele d by the dominant allele D by mutation alone. Even tho The rate of replacement of a recessive allele d by the dominant allele D by mutation alone. Even tho
A non-interest-bearing five-year note for $54600.00 issued May 1, 2015, is discounted April 1, ... A non-interest-bearing five-year note for $54600.00 issued May 1, 2015, is discounted April 1, ...
The treasurer of a union proposes changing the method of compounding interest on premium ... The treasurer of a union proposes changing the method of compounding interest on premium ...
Video: Fermentation - When Oxygen Is Absent, Pyruvate to Lactate & Pyruvate to Ethanol

For a complete list of videos, visit our video library