ECON 364 Money & Banking Chapter 1‚ page 19‚ #20 chapter 2‚ page 50‚ #22 20. Much of the US government debt is held as treasury bonds and bills by foreign investors. How do fluctuations in the dollar exchange rate affect the value of that debt held by foreigners? The book states a strong dollar would benefit American consumers by making foreign goods cheaper‚ however this hurt American businesses and eliminated some jobs by cutting domestic and foreign sales of their products. A strong dollar
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The discount rate Main article: Discount rate The rate used to discount future cash flows to their present values is a key variable of this process. A firm’s weighted average cost of capital (after tax) is often used‚ but many people believe that it is appropriate to use higher discount rates to adjust for risk or other factors. A variable discount rate with higher rates applied to cash flows occurring further along the time span might be used to reflect the yield curve premium for long-term
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Comments Topic: How culture affects economic growth. TS1: The first aspect of culture that affects the economy is people’s way of life. TS2: People’s values can also influence a country’s economy. Thesis: Economy can be affected both in positive and negative way depending upon the culture of each country. TS1: Culture is the thing to define the way of living of people in each country. SP1.1: Economy can be affected by people way of living. (eg. How people consume things and services
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Chapter 19 1.Calculate the weighted-average cost of capital (WACC) for Federated Junkyards of America‚ using the following information: • Debt: $75‚000‚000 book value outstanding. The debt is trading at 90 percent of par. The yield to maturity is 9 percent. • Equity: 2‚500‚000 shares selling at $42 per share. Assume the expected rate of return on Federated’s stock is 18 percent. • Taxes: Federated’s marginal tax rate is Tc = .35 What are the key assumptions underlying your calculation?
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between democracy and economic growth has generated much controversy‚ research‚ and even bewilderment. If economic development is an expression of the level of development of societies‚ it will also be compatible with the level of democratic development. Democracy will become a catalyst and engine of economic and social development in society. To what extent does the economy affect the building of democracy? Is democracy a condition for economic development‚ or is economic development laying the
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one of the most important factors when talking about growth‚ the present session intends to provide further information about the topic. According to Hanusheck and Wössmann (2010)‚ education affects economic growth in three different ways. First‚ it is important to mention that it is responsible to increase human capital quality‚ a key factor considering the labor force. Once that economic sectors count with a high level human capital‚ they get able to increase labor productivity rate and also achieve
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1) A Countrys rate of economic growth is important because an economy that grows to slowly fails to raise the living standards of its citizens 2)Related don’t let this happen to you! Use the data for the country of New Finlandia in the following table to calculate the following 2006 4‚568. A] the percentage of real gap per capita between 2006 and 2010 is ____3.92_____% The average annual growth rate in real gap per capita between 2006 and 2010 is _________2_____% 3)The following table gives real
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plenty of different capabilities and improving some early ones from the 1940s until the 2000s. (Lule & Jack‚ 2016) When John Logie Baird from Scotland invented the TV in 1925‚ he could not have imagined how the TV has changed people’s way of life or where it would be now (Burns‚ 2000). Today‚ television can be found in more than 1.6 billion homes across the world and without doubt‚ it is one of the most crucial inventions of the 20th century. (Lule & Jack‚ 2016). Television plays an essential role in
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investigate the effects of temperature on the growth rate pine seedlings. Experiment 1 A batch of 60 pine seedlings (Batch I) was grown in a greenhouse under controlled temperatures. Ten plants were grown at each of six temperatures from 50 C to 300 C. These plants remained at their original temperatures 24 hours each day for two weeks. All other conditions were the same for all seedlings. The growth rates are shown in Table 1. Table 1. Growth rates for pine seedlings in Batch I Experiment
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RISK-ADJUSTED DISCOUNT RATES and LIABILITY BETA RUSSELL E. BINGHAM T H E H A R T F O R D FINANCIAL SERVICES G R O U P Table of Contents Page 2 3 5 7 8 11 12 13 14 14 15 16 17 17 18 Subject Abstract 1. Summary 2. Total Return Model 3. After-Tax Discounting 4. Derivation of Risk-Adjusted Discount Rate and Liability Beta Figure l : Baseline Risk / Return Line vs Leverage 5. Liability Beta Figure 2: Equity vs Liability Beta Figure 3: Equity Beta vs Risk-Adjusted Discount Rate (After-Tax)
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