« previous next »

Author Question: Equity finance is represented by which of the following? A) when a firm borrows money from banks ... (Read 67 times)

cagreen833

  • Hero Member
  • *****
  • Posts: 544
on: Jun 30, 2018
Equity finance is represented by which of the following?
 
  A) when a firm borrows money from banks
  B) when a firm sells bonds
  C) when a firm sells shares of stock
  D) when a firm draws down retained earnings
  E) when a firm sells off part of its capital stock

Question 2

The demand for money is given by Md = Y (0.3 - i), where Y = 100 and the supply of money is 20. a. What is the equilibrium interest rate? b. What is the impact on the interest rate if central bank money is increased to 25?
 
  What will be an ideal response?


Brenm

  • Sr. Member
  • ****
  • Posts: 359
Reply #1 on: Jun 30, 2018
Answer to Question 1

C

Answer to Question 2

a. i = 10
b. Interest rate will decrease to 5.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Pink eye is a term that refers to conjunctivitis, which is inflammation of the thin, clear membrane (conjunctiva) over the white part of the eye (sclera). It may be triggered by a virus, bacteria, or foreign body in the eye. Antibiotic eye drops alleviate bacterial conjunctivitis, and antihistamine allergy pills or eye drops help control allergic conjunctivitis symptoms.

Did you know?

Famous people who died from poisoning or drug overdose include, Adolf Hitler, Socrates, Juan Ponce de Leon, Marilyn Monroe, Judy Garland, and John Belushi.

Did you know?

Elderly adults are living longer, and causes of death are shifting. At the same time, autopsy rates are at or near their lowest in history.

Did you know?

One way to reduce acid reflux is to lose two or three pounds. Most people lose weight in the belly area first when they increase exercise, meaning that heartburn can be reduced quickly by this method.

Did you know?

Throughout history, plants containing cardiac steroids have been used as heart drugs and as poisons (e.g., in arrows used in combat), emetics, and diuretics.

Joseph Banks Joseph Banks
Organic Test banks Carey 8th Edition Organic Test banks Carey 8th Edition
Abdominal thrusts are delivered with a firm thrust into the patient’s abdomen with an upward ... Abdominal thrusts are delivered with a firm thrust into the patient’s abdomen with an upward ...
Atlantic Cod Stocks, Grand and George Banks Atlantic Cod Stocks, Grand and George Banks
Corporate Finance: The Core Corporate Finance: The Core
Introduction to Corporate Finance, 5th Introduction to Corporate Finance, 5th
Video: Control of ventilation rate by other brain centers (posts, hypothalamus & cerebral cortex)

For a complete list of videos, visit our video library