Answer:
Store of value.
Explanation:
Ruth Hu recently inherited $200,000. She has invested the inherited money in real estate and government securities. Hu is using her money as a store of value.
A store of value can be defined as the characteristic of an asset which makes it tradable, can be saved, maintain its value, retrievable and exchanged at a future time without it depreciating.
Assets with such functions or characteristics are money, gold, diamonds and other precious stones.
Answer:
Retiring the oldest bond
Explanation:
Firms issue bonds to raise the funds. Firm has to pay dividend on those bonds and the ability of firm to pay dividend reflect the financial position of the firm. Thus, retiring the oldest bond in exposes company to the most risk of being issued an emergency loan
Answer:
$44
Explanation:
Data provided in the question:
Dividend on Spirex Corporation's common stock = $4.00
Expected growth rate, g = 10%
Required rate of return, r = 20%
Now,
Price willing to pay =
here,
D1 = dividend at end of year
or
D1 = $4 × (1 + r )
or
D1 = $4 × ( 1 + 0.1 )
or
D1 = $4.4
Thus,
Price willing to pay =
or
Price willing to pay = $44
Answer:
C. Rapid rises in price levels made the Zimbabwean dollar near worthless in terms of purchasing power.
Explanation:
As in the given situation it is mentioned that 10 year old boy has the bill of billion dollar this represented that the country really printed the bill of billion dollar. It means that the attempt is to be done in order to print a currenct note of higher denomination that also represent that the country would increased such level also at the same time a big amount is required to purchased the goods and services.
Also the high denomination values would not consist of actual value as they have purchasing power i.e. negligible