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

Author Question: Which of the statements below is TRUE regarding interest rates in the period 1950-1999? A) ... (Read 66 times)

ahriuashd

  • Hero Member
  • *****
  • Posts: 535
on: Jul 10, 2018
Which of the statements below is TRUE regarding interest rates in the period 1950-1999?
 
  A) Inflation averaged 1.18.
  B) The real rate averaged 4.05.
  C) The default premium averaged 7.05.
  D) The maturity premium averaged 1.28 (for twenty-year maturity differences).

Question 2

Assume that Plavor Brands, Inc has 10,000,000 common shares outstanding that have a par value
  of 2 per share. The stock is currently trading for 30 per share. The firm reported a net profit
  after-tax of 25,000,000.
 
  All else equal, what will happen to earnings per share if the company
  issues a 10 stock dividend?
  A) Earnings per share will increase because the dividend increases the value of the company.
  B) Earnings per share will remain the same since a stock dividend does not create an expense.
  C) Earnings per share will decrease because the number of shares outstanding will go up.
  D) The impact cannot be determined without additional information on the new price per share.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

fauacakatahaias

  • Sr. Member
  • ****
  • Posts: 353
Reply #1 on: Jul 10, 2018
Answer to Question 1

Answer: D
Explanation: D) For the period 1950-1999, inflation averaged 4.05, the real rate averaged 1.18, the maturity premium averaged 1.28 (for twenty-year maturity differences), and the default premium averaged 0.49 (for AAA over government bonds).

Answer to Question 2

C


ahriuashd

  • Member
  • Posts: 535
Reply 2 on: Jul 10, 2018
Great answer, keep it coming :)

carlsona147

  • Member
  • Posts: 341
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

« previous next »
 

Did you know?

Stroke kills people from all ethnic backgrounds, but the people at highest risk for fatal strokes are: black men, black women, Asian men, white men, and white women.

Did you know?

An identified risk factor for osteoporosis is the intake of excessive amounts of vitamin A. Dietary intake of approximately double the recommended daily amount of vitamin A, by women, has been shown to reduce bone mineral density and increase the chances for hip fractures compared with women who consumed the recommended daily amount (or less) of vitamin A.

Did you know?

The immune system needs 9.5 hours of sleep in total darkness to recharge completely.

Did you know?

To combat osteoporosis, changes in lifestyle and diet are recommended. At-risk patients should include 1,200 to 1,500 mg of calcium daily either via dietary means or with supplements.

Did you know?

Atropine, along with scopolamine and hyoscyamine, is found in the Datura stramonium plant, which gives hallucinogenic effects and is also known as locoweed.

Total fertility rates (TFRs) among major regions of the world. Total fertility rates (TFRs) among major regions of the world.
Northern ice cap of Mars in 1999 Northern ice cap of Mars in 1999
Embryonic Period Embryonic Period
Embryonic Period Embryonic Period
The population of a city has continued to grow since 1950. The population of a city has continued to grow since 1950.
E9-23 Prepare income statements Explain the difference in operating income E9-23 Prepare income statements Explain the difference in operating income
Video: Arthritis

For a complete list of videos, visit our video library