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With reference to financial management, write a short essay on the concept of sources of finance as a key fundamental in respect of managers’ maximising corporate value for shareholders. Maximum 600 words and include references.
Explain how South African Reserve bank can accommodate policy to keep inflation under control and in this way meet its inflation targets
Use demand and supply curves to illustrate and explain why rare items such as the Mona Lisa painting by Leonardo da Vinci are sold at such high prices
Distinguish between active balances and passive balances and mention the main determinant of each.
Suppose you are given RM500 each month to spend on meals and sports. Each meal will cost you RM5 and each sport will cost you RM2 per time you spend. Explain with a diagram to show that you have achieve an optimum consumption. Carefully derive the bundle of meals and sports at the optimum consumption point and the intercept points in your diagram. Could you able to obtain a higher optimum consumption point if your budget remains at RM500? Explain
Robinson Crusoe produces upper-loop product of $1000. He pays $750 in wages, $125 in interest, and $75 in rent. What must his profi t be? If three-fourths of Crusoe’s output is consumed and the rest invested, calculate Crusoeland’s GDP with both the product and the income approaches and show that they must agree exactly.
A multinational company is looking to raise USD 50000000 for its expansion strategy across different countries, where they are only present as of now. Based on their financial capital structure, the HQ decides to go for funding by issuing bonds in the international market. Describe the two broad categories of international bond markets. Briefly explain
the various types of bond instruments that the MNC can consider issuing in the international bond market.
Please help. I am so confused with all the equations.
Consider an open economy with S = 0.2Y, M = 0.15Y, T = 0.15Y, where S is the savings function, M is the induced imports and T is the tax function.
Further assume the following autonomous components: C0 = 450, G = 950, I = 500; M = 0; and X = 1 000.
3.1.1 Calculate the open economy multiplier. (3)
3.1.2 Calculate the equilibrium income. (2)
3.1.3 Calculate the value of savings. (3)
3.1.4 Calculate the value of net exports, and comment on the external position of the economy based on your answer.(2)
These are my answers, please let me know if I am on the right track:
3.1 Open economy multiplier = 1 / MPS + MPM + MPT
= 1 / 0.2 + 0.15 + 0.15 = 1 / 0.5
= 2
3.2 Y = C + I + G + (X – M)
Y = 450 + 500 + 950 + 1000
Y = 2900
3.3 S = 0.2Y
= 0.2 (2900)
= 580
3.4 Net exports = (X-M) = 1000
The country exports more goods than it imports and therefore has a trade surplus.
Across the entire economy it is expected that inflation will rise. The result will be the _____ curve will shift _____.
A. AD; rightward
B. SRAS; upward
C. SRAS; downward
D. AD; until it becomes vertical
At a specific inflation level people from other countries are more willing to buy goods and services from the U.S. As a result, the _____ will shift _____.
A. aggregate demand curve; right
B. short-run aggregate supply line; downward
C. aggregate demand curve; left
D. short-run aggregate supply line; upward
