Economics Answers

The 1.2 million preferred shares of Mighty Machines Ltd., which pay a dividend rate of 6.5 percent on a stated value of $40, are currently worth $42,000,000. What is the risk premium associated with these preferred shares if the risk-free rate is 4.25 percent?

Pharoah Corporation has issued $1 million in preferred shares to investors with a 7.90 percent annual dividend rate on a par value of $100. Assuming the firm pays dividends indefinitely and the required rate is 10 percent, calculate the price of the preferred shares.

Wildhorse, Inc., has bonds outstanding that will mature in 8 years. The bonds have a face value of $1,000. These bonds pay interest semiannually and have a coupon rate of 4.6 percent. If the bonds are currently selling at $909.92, what is the yield to maturity that an investor who buys them today can expect to earn? What is the effective annual yield?

: The United Kingdom (UK) held a national referendum (vote) on whether the UK should remain in the European Union (EU) or should exit the EU. Exiting the EU is likely to have several consequences: (1) increased barriers to trade between the UK and the remaining EU countries; (2) Reduced refugee flows.
Use the AS/AD model to describe the short run and long run effect of the UK exit from the EU.

the arc advertising elasticity is 1.5 as advertising expenditure increases from $10 to $12 million. if demand is 50 at an advertising expenditure of $12 million, what will be the demang at an advertising expenditure of $10 million?

Given a hypothetical consumption function of the form:
Y = C + I0 + G0
C = α + βY^d
Where: Y^d = Y – T
Y = Income
T = Taxes
Compute the equilibrium level of income and consumption

Give three examples of the price ceiling and discuss its effects.

Suppose that the economy is characterized by the following behavioral equations: C = 150 + 0.4Yd-6i, I = 70 + 0.2Y-i, G = 80, T = 15+0.25Y, Md = 0.2Y-15-75i, M=2800,P=20

does interest rate affect consumption?

The United Kingdom (UK) held a national referendum (vote) on whether the UK should remain in the European Union (EU), or should exit the EU. Exiting the EU is likely to have several consequences: (1) increased barriers to trade between the UK and the remaining EU countries; (2) Reduced refugee flows.

Use the AS/AD model to describe the short run and long run effect of the UK exit from the EU.